# What will my mortgage payment be?

Computes the monthly mortgage payment with property tax, insurance, HOA dues, and mortgage insurance for conventional, FHA, and VA loans, with the full amortization schedule.

- Page: https://www.acalculator.org/finance/mortgage-calculator
- JSON spec: https://www.acalculator.org/finance/mortgage-calculator.json
- Version: 5b53603d993f

## Default answer

Example with the default inputs (Home price $400,000.00, Down payment $80,000.00, Interest rate 6.5%, Loan term (years) 30, Loan type Conventional, PMI rate (per year) 0.5%, Property tax (per year) 1.1%, Home insurance $1,800.00, HOA dues $0.00, Extra each month $0.00, Loan start date September 29, 2026) on the example date Tuesday, September 29, 2026: A $320,000.00 mortgage at 6.5% over 30 years costs $2,539.28 a month, of which $2,022.62 is principal and interest.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Home price | The price of the home. |
| down | Down payment | The cash you pay toward the price. The loan is the price minus this. |
| rate | Interest rate | The fixed yearly rate. The monthly rate is this ÷ 12. |
| years | Loan term (years) | The length of the mortgage, for example 30 or 15 years. |
| type | Loan type | Conventional, FHA, or VA. |
| pmi | PMI rate (per year) | Private mortgage insurance per year, as a percent of the loan, charged under 20% down. |
| use | VA loan benefit | First or later use of the VA home loan benefit, or exempt from the funding fee. |
| tax | Property tax (per year) | The yearly property tax as a percent of the home price. |
| insurance | Home insurance | The homeowners insurance premium. |
| hoa | HOA dues | Homeowners association or condo dues. |
| extra | Extra each month | An extra amount paid toward principal with every payment. |
| start | Loan start date | The day the loan starts. The first payment is one month later. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| monthly | Monthly payment | The first month’s total: principal, interest, tax, insurance, mortgage insurance, and HOA dues. |
| pi | Principal and interest | The level monthly payment on the loan. |
| taxes | Property tax | The property tax for one month. |
| insurance | Home insurance | The home insurance for one month. |
| mi | Mortgage insurance | PMI or the FHA annual premium in the first month. |
| hoa | HOA dues | The HOA dues for one month. |
| loan | Loan amount | The price minus the down payment, plus any financed FHA or VA fee. |
| upfront | Upfront fee added to the loan | The FHA upfront premium or VA funding fee, added to the loan. |
| ltv | Loan-to-value | The price minus the down payment, as a percent of the price. |
| interest | Total interest | All the interest over the life of the loan. |
| miTotal | Total mortgage insurance | All the PMI or FHA annual premium paid. |
| miMonths | Months of mortgage insurance | How many monthly payments include PMI or the FHA annual premium. |
| payoff | Paid off in | The month of the last payment, when a start date is given. |
| total | Total cost | The down payment plus everything paid over the loan. |
| saved | Interest saved by paying extra | The interest the extra monthly amount saves. |
| sooner | Months saved by paying extra | How many fewer payments the extra monthly amount takes. |

## Method

principal and interest = L × r ÷ (1 − (1 + r)^−n), with L the loan, r the rate ÷ 12, and n the months; tax, insurance, HOA dues, and mortgage insurance are added.

## Assumptions

- The rate is fixed, interest is charged monthly at the rate ÷ 12, and the first payment is one month after the start.
- PMI is a yearly percent of the loan, charged while the balance is above 78% of the price and never after mid-term.
- FHA premiums follow HUD Mortgagee Letter 2023-05; FHA and VA upfront fees are added to the loan.
- Tax, insurance, and HOA dues stay the same, and nothing is rounded between months.

## Worked examples

1. price = $400,000.00, down = $80,000.00, rate = 6.5%, years = 30, type = conventional, pmi = 0.5%, tax = 1.1%, insurance = $1,800.00 gives pi = $2,022.62, monthly = $2,539.28, mi = $0.00, interest = $408,142.36, total = $994,142.36. Source: hand calculation in content.mdx.
2. price = $300,000.00, down = $30,000.00, rate = 7%, years = 30, type = conventional, pmi = 0.5% gives pi = $1,796.32, mi = $112.50, miMonths = 115, miTotal = $12,937.50. Source: hand calculation in content.mdx.
3. price = $300,000.00, down = $10,500.00, rate = 6.25%, years = 30, type = fha gives upfront = $5,066.25, loan = $294,566.25, mi = $131.98, pi = $1,813.70, miMonths = 360. Source: hand calculation in content.mdx.
4. price = $350,000.00, down = $0.00, rate = 6%, years = 30, type = va, use = first gives upfront = $7,525.00, loan = $357,525.00, mi = $0.00, pi = $2,143.54. Source: hand calculation in content.mdx.
5. price = $400,000.00, down = $80,000.00, rate = 6.5%, years = 30, type = conventional, pmi = 0.5%, extra = $300.00 gives interest = $269,696.46, saved = $138,445.90, sooner = 106. Source: hand calculation in content.mdx.

## FAQ

### How is a mortgage payment calculated?

The principal and interest part is the fixed-rate loan formula L × r ÷ (1 − (1 + r)^−n), where L is the loan, r is the yearly rate ÷ 12, and n is the number of months. Lenders usually collect property tax and home insurance with it, and add mortgage insurance and HOA dues if you have them. A $320,000 loan at 6.5% over 30 years is $2,022.62 of principal and interest a month.

### When do I have to pay PMI?

Conventional lenders usually require private mortgage insurance when you put down less than 20%. Freddie Mac puts its cost at about $30 to $70 a month for every $100,000 borrowed. By law your servicer must end it when the balance is scheduled to reach 78% of the home's original value, and you can ask to cancel it at 80%.

### How does FHA mortgage insurance work?

FHA loans charge an upfront premium of 1.75% of the base loan, usually added to the loan, and an annual premium paid monthly. For most 30-year loans the annual premium is 0.55% with less than 5% down and 0.50% with 5% or more. With 10% or more down it stops after 11 years; otherwise it lasts the life of the loan.

### What is the VA funding fee?

VA loans have no monthly mortgage insurance, but most charge a one-time funding fee that can be added to the loan: 2.15% of the loan for a first use with less than 5% down, 1.5% with 5% or more, and 1.25% with 10% or more. Veterans who receive VA disability compensation, and some others, are exempt.

### How much should I put down?

A bigger down payment means a smaller loan, less interest, and on a conventional loan no PMI at 20% down. FHA loans need at least 3.5% down and VA loans can need none. Keep enough cash for closing costs and an emergency fund.

### Is a 15-year or a 30-year mortgage better?

A 15-year loan has a higher payment but usually a lower rate and far less interest. A 30-year loan has a lower payment, which leaves room in your budget. Try both terms here and compare the monthly payment and the total interest.

### Why does my lender's estimate differ?

Your Loan Estimate includes your actual tax, insurance, and mortgage insurance quotes, and rounds each payment to the cent. Property tax and insurance also change from year to year, while this page keeps them the same.

## Sources

- Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan? https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/
- Freddie Mac, Breaking down PMI. https://myhome.freddiemac.com/buying/breaking-down-pmi
- U.S. Department of Housing and Urban Development, Mortgagee Letter 2023-05, Reduction of FHA Annual Mortgage Insurance Premium Rates (February 22, 2023). https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf
- U.S. Department of Housing and Urban Development, Monthly (Periodic) Mortgage Insurance Premium Calculation. https://www.hud.gov/hud-partners/housing-premium-calculation
- U.S. Department of Housing and Urban Development, What is the minimum down payment requirement for FHA? https://answers.hud.gov/FHA/s/article/What-is-the-minimum-down-payment-requirement-for-FHA
- U.S. Department of Veterans Affairs, VA funding fee and loan closing costs. https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/
- Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3.