How to Estimate Your Monthly Mortgage Payment

Buying a home? One of the first questions you’ll face is: How much will my monthly mortgage payment be? Your mortgage payment isn’t just your loan principal and interest — it also includes property taxes, homeowner’s insurance, and sometimes mortgage insurance (PMI).

The 4 Parts of a Mortgage Payment (PITI)

• Principal: The portion of your payment that reduces your loan balance.
• Interest: The cost of borrowing from the lender.
• Taxes: Property taxes paid to your local government.
• Insurance: Homeowner's insurance and, if required, private mortgage insurance (PMI).

Mortgage Payment Example

Let’s say you buy a $300,000 home with a 20% down payment and a 6.5% interest rate on a 30-year loan:

• Loan amount: $240,000
• Estimated monthly principal + interest: $1,518
• Estimated taxes + insurance: $300

Total estimated monthly payment: $1,818

What Can Change Your Payment?

• Loan term (15 years vs 30 years)
• Interest rate
• Down payment amount
• Local property taxes
• Whether you need PMI

Try Our Free Mortgage Calculator

Want to estimate your payment for your budget? Use our free Mortgage Calculator to adjust your home price, interest rate, and loan term to fit your budget.

Helpful Resource

For up-to-date mortgage rates and loan options, check out the CFPB's mortgage guide.