Phase 2 · Wealth & Leverage
Mortgage Calculator (PITI)
The quoted payment is never the whole payment. See your real all-in monthly cost — principal, interest, taxes, insurance and PMI — and the interest you'll pay over the life of the loan.
Under the hood
The math, fully exposed
Every part of the payment, shown — PMI is estimated at 0.6%/yr of the loan while your down payment is under 20%:
Loan = price − down payment
Monthly P&I = L × r × (1+r)n ÷ ((1+r)n − 1)
Property tax / mo = price × tax rate ÷ 12
PMI / mo = loan × 0.6% ÷ 12 (only while down < 20%)
PITI = P&I + tax + insurance + PMI
- Escrow is real money: taxes and insurance can add several hundred dollars a month on top of principal and interest — the gap between a teaser "payment" and your actual one.
- PMI is avoidable: reach 20% down (or 20% equity later) and the PMI line disappears, instantly lowering your payment.
- Then accelerate: once you know the payment, our mortgage paydown calculator shows how extra principal cuts the lifetime interest above.
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What to do next, based on your numbers
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Answers
Frequently asked questions
What is PITI?
PITI is the four parts of a true mortgage payment: Principal, Interest, property Taxes and homeowners Insurance — often with PMI on top. Most quick calculators show only principal and interest, which undersells the real monthly cost by hundreds of dollars. Taxes and insurance are usually collected in an escrow account alongside your payment.
What is PMI and how do I avoid or remove it?
Private Mortgage Insurance protects the lender when your down payment is under 20%, and it's pure cost to you — typically 0.3%–1.2% of the loan per year. You avoid it by putting 20% down, and you can usually request its removal once you reach 20% equity (it auto-cancels at 22%). On a large loan, dropping PMI saves real money every month.
How much of my payment goes to interest?
Early on, almost all of it. A mortgage is front-loaded: in the first years the bulk of each payment is interest, with only a little chipping at principal — which slowly flips over the loan's life. It's why total interest over 30 years can rival or exceed the amount borrowed, and why extra early principal payments are so powerful.
How much house can I afford?
A common guideline is the 28/36 rule: keep your total housing payment (PITI) under ~28% of gross monthly income, and all debt payments under ~36%. Lenders also look at credit, reserves and down payment. Use the all-in PITI here — not just principal and interest — when you check those ratios, or you'll overestimate what you can carry.