What to check before you apply for a mortgage
A practical checklist before applying for a mortgage: credit, down payment, debt-to-income ratio, documents, the Loan Estimate and often-forgotten costs.
Mortgage calculator
Estimate your monthly payment on a fixed-rate mortgage by adding principal and interest, property taxes, homeowners insurance, HOA dues and, if it applies, private mortgage insurance (PMI).
Fix the highlighted fields to see your result.
Estimated monthly payment—
- Loan amount
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- Down payment
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- Total interest over the term
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- Total principal + interest
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How it is calculated
The principal and interest portion uses the same amortization formula as any fixed-rate loan:
M = P × r ÷ (1 − (1 + r)−n)
P is the price minus the down payment, r is the annual rate ÷ 12 and n is the number of payments (years × 12). To that we add annual property tax and insurance divided by 12, monthly HOA dues and estimated PMI (annual rate × loan amount ÷ 12) when the loan is more than 80% of the home's value.
Assumptions and limitations
- Assumes a fixed rate for the full term. It does not model adjustable-rate mortgages (ARMs).
- PMI is an estimate held constant; in practice it can be removed as the balance falls, and its cost depends on the lender and your profile. FHA loans use a different premium (MIP) not modeled here.
- Does not include closing costs, discount points or future changes in taxes or insurance.
- Your actual rate depends on your credit, down payment, loan type and the market on the day you lock it.
This tool is educational and provides estimates. It is not a credit offer or financial advice. Actual terms are set by each institution.
What "PITI" means
In the U.S., a monthly mortgage payment commonly includes four parts: Principal, Interest, property Taxes and homeowners Insurance. Taxes and insurance are often paid through an escrow account managed by the lender.
That is why a quote showing only "principal and interest" can look much cheaper than what will actually leave your account each month. Fill in the optional fields to see the full payment.
Compare with your Loan Estimate
When you apply for a mortgage, the lender must give you a standardized Loan Estimate. Use this calculator to understand the numbers, but rely on that official document and compare at least two or three offers.