What is included in a mortgage payment?

PITI: Principal, Interest, Taxes, Insurance — plus PMI if your down payment is under 20%, and HOA fees where applicable. Lender ads usually show only principal and interest.

How much does 1% rate difference change my payment?

On a $320,000 30-year loan, moving from 6.5% to 7.5% raises P&I by roughly $215/month — about $77,000 over the life of the loan. Rate shopping across 3+ lenders has one of the highest per-hour payoffs in personal finance.

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Mortgage Calculator

Monthly mortgage payment from price, down payment, rate, and term — including the parts lender ads leave out: property tax, home insurance, and PMI when the down payment is under 20%. The headline number here is the full PITI cost of owning.

The numbers

Total monthly payment (PITI): 2,481
Principal & interest: 2,023
Taxes + insurance / month: 458
Loan amount: 320,000; 80,000 down
Total interest over term: 408,142

The operator’s read

Worth knowing

P&I is 82% of the real monthly cost. Budgeting on the advertised P&I number alone is the most common first-time-buyer mistake — taxes and insurance don't pause, and they rise.

Worth knowing

Total interest is 408,142 — 128% of the loan. One extra payment a year on a 30-year mortgage typically cuts 4–6 years off the term.

Methodology

P&I uses the standard amortization formula M = L·i/(1 − (1+i)^−n). Property tax and insurance are annual figures divided by 12. PMI is estimated at 0.6%/year of the loan while the down payment is under 20% — actual PMI ranges ~0.3–1.5% by credit score and LTV.

Excluded: HOA fees, maintenance (budget ~1%/year of home value), closing costs, and rate changes on ARMs. This models a fixed-rate loan.

Questions

What is included in a mortgage payment?: PITI: Principal, Interest, Taxes, Insurance — plus PMI if your down payment is under 20%, and HOA fees where applicable. Lender ads usually show only principal and interest.
How much does 1% rate difference change my payment?: On a $320,000 30-year loan, moving from 6.5% to 7.5% raises P&I by roughly $215/month — about $77,000 over the life of the loan. Rate shopping across 3+ lenders has one of the highest per-hour payoffs in personal finance.

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/mortgage \
  -H 'content-type: application/json' \
  -d '{"price":400000,"downPct":20,"rate":6.5,"years":30,"propertyTax":4000,"insurance":1500}'

Schema: GET /api/v1/tools/mortgage · MCP tool name: mortgage

Related tools

Methodology

Excluded: HOA fees, maintenance (budget ~1%/year of home value), closing costs, and rate changes on ARMs. This models a fixed-rate loan.

Questions

What is included in a mortgage payment?: PITI: Principal, Interest, Taxes, Insurance — plus PMI if your down payment is under 20%, and HOA fees where applicable. Lender ads usually show only principal and interest.
How much does 1% rate difference change my payment?: On a $320,000 30-year loan, moving from 6.5% to 7.5% raises P&I by roughly $215/month — about $77,000 over the life of the loan. Rate shopping across 3+ lenders has one of the highest per-hour payoffs in personal finance.