For the majority of us, a home purchase is the biggest financial decision we’ll make. It’s also among the most complicated, because the monthly cost includes a lot more than just principal and interest. And don’t forget about property taxes and homeowner’s insurance—the other important ingredients referred to as PITI (Principal, Interest, Taxes, Insurance).
A tiny adjustment in mortgage rate, property tax or down payment can make a significant impact on your monthly housing affordability. Ideal for first-time home buyers, our mortgage calculator enables you to estimate your monthly payments and overall borrowing costs in order to feel confident as you search for your new dream house.
Simplifying the PITI Calculation
It’s common for banks to make their numbers look complicated, but our calculator does all the important math so you can budget money like a boss:
- Principal & Interest: The amount you pay back the lender for disbursing your loan and giving you money.
- Taxes & Insurance (T&I): Because these amounts can be included in your monthly mortgage payment, we also offer you the option of including either your annual property tax or insurance amount as part of the total.
- Affordability: See how much you can save — or which better loan terms you can qualify for — by increasing your down payment, or by trading in a car with equity.
Features Overview of Our Free Mortgage Planning Tool
We provide the critical tools necessary for home buying planning, absolutely free:
- PITI Payment Calculation: Using the home price, down payment, loan term, and annual real estate taxes & insurance estimate can render actual monthly payment including all costs.
- Equity Tracking Amortization Schedule: View a detailed table throughout the term of your loan to see how much of each payment is going toward principal and interest, and see exactly how quickly you build equity.
Scenario Inputs Customizable: Simple Comparison of Scenarios:
Modify the Interest Rate to see the difference in monthly payment: Get a lower interest rate by paying discount points Change your interest rate and loan term for accurate results.
Adjust the Down Payment to find out what a larger down payment means for your monthly costs.
- Total Interest Paid Summary: This the total accumulative interest paid over the life of your loan (15, 20 or 30 years), and it’s big and scary to ensure you take into consideration some early pay-off scenarios.
- Clear Output: Results are tabulated by pie chart, for an easily understandable financial breakdown of your pledge.
Begin your home purchasing journey armed with the knowledge you need. Get started on your future home with our Free Mortgage Calculator now and Calculate what you can afford.