Free Mortgage Calculator with Taxes & Insurance

Our mortgage calculator provides highly accurate estimates based on the information you enter. It uses standard mortgage formulas used by lenders and includes all major cost components: principal, interest, property taxes, homeowners insurance, PMI, and HOA fees. However, your actual mortgage payment may vary slightly based on specific lender fees, exact tax rates in your area, and insurance premiums. Always verify final numbers with your lender before making decisions.

Current mortgage rates vary daily and depend on factors like your credit score, down payment, loan type, and lender. As of early 2025, 30-year fixed mortgage rates average around 6.5% to 7%, while 15-year rates are typically 0.5% to 0.75% lower. Check current rates from multiple lenders to get an accurate number for your calculation. You can also run the calculator with different rates to see how small rate changes affect your monthly payment.

Down payment requirements vary by loan type. Conventional loans can require as little as 3% down, though putting down less than 20% means you'll pay PMI. FHA loans require just 3.5% down, VA loans require $0 down for eligible veterans, and USDA loans also offer zero-down options for qualified buyers in eligible rural areas. While 20% down has traditionally been the standard, many first-time home buyers successfully purchase with much less. Use our calculator to see how different down payment amounts affect your monthly payment and PMI costs.

Our calculator includes principal and interest (P&I), which are the core components of your mortgage payment. It also factors in property taxes (T), homeowners insurance (I), private mortgage insurance (PMI) if applicable, and HOA fees. These six components make up your true monthly housing cost. Some calculators only show P&I, giving you an incomplete picture. Our tool gives you the full story so you can budget accurately and avoid surprises.

The 28/36 rule is a helpful guideline: your mortgage payment (including taxes and insurance) shouldn't exceed 28% of your gross monthly income, and your total debt payments shouldn't exceed 36%. For example, if you earn $6,000 per month, your maximum mortgage payment should be around $1,680, and your total debt (including the mortgage) should stay under $2,160. However, comfort levels vary—consider your lifestyle, job security, and savings goals when determining what you can truly afford.

Private Mortgage Insurance (PMI) protects the lender if you default on a conventional loan with less than 20% down. PMI typically costs 0.5% to 1% of the loan amount annually. You can request PMI removal once your loan-to-value ratio reaches 80% through regular payments. By law, PMI must automatically terminate at 78% LTV. You can also reach 80% LTV faster through home appreciation or extra principal payments. Use our calculator's PMI settings to see how appreciation affects your PMI removal timeline.

This depends on your financial goals and budget. A 30-year mortgage offers lower monthly payments and more flexibility, making it easier to qualify and manage cash flow. A 15-year mortgage has higher payments but significantly lower interest rates and massive interest savings—often $100,000+ over the loan term. If you can comfortably afford the higher payment and prioritize becoming debt-free faster, a 15-year loan is excellent. If you need lower payments or want to invest the difference elsewhere, a 30-year loan provides flexibility. Use our calculator to compare both options side by side.

Biweekly payments work by paying half your monthly mortgage every two weeks instead of one full payment per month. Since there are 52 weeks in a year, you make 26 half-payments (equivalent to 13 monthly payments) instead of 12. This extra payment goes directly toward principal, reducing your balance faster and saving significant interest. On a $300,000 30-year mortgage at 6.5%, biweekly payments could save you over $40,000 in interest and pay off your loan 4-5 years early. Not all lenders offer biweekly payment plans, but you can achieve similar results by making one extra monthly payment per year.

Beyond your monthly mortgage payment, budget for utilities (electricity, gas, water, internet), routine maintenance (typically 1% of home value annually), repairs, landscaping, and potential HOA fees if applicable. You'll also need to cover closing costs (2-5% of the loan amount) when purchasing. First-time buyers often underestimate these additional expenses. A good rule of thumb is to add 20-30% to your mortgage payment to estimate your true monthly housing costs. Having an emergency fund of 3-6 months of expenses is also crucial for homeowners.

Yes! Enter your current loan balance as the home price, set your down payment to $0, and input the new interest rate and term you're considering. The calculator will show your new monthly payment, allowing you to compare it with your current payment. Remember to factor in refinance closing costs (typically $2,000-$5,000) when deciding if refinancing makes financial sense. Generally, refinancing is worthwhile if you can lower your rate by at least 0.75% to 1% and plan to stay in your home long enough to recoup the closing costs.