Your true monthly payment — Principal, Interest, Taxes, and Insurance — plus payoff and rent-vs-buy math.
Add an extra monthly principal payment and see how much time and interest it erases.
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PITI stands for Principal, Interest, Taxes, and Insurance — the four parts of your real monthly mortgage payment. Principal pays down your loan balance. Interest is what the lender charges. Taxes are your property taxes, and insurance is your homeowners policy. Lenders use your full PITI — not just principal and interest — to decide how much you can borrow.
A "$1,900/mo mortgage" can easily be a $2,600/mo housing bill once taxes, insurance, mortgage insurance, and HOA dues are added. Budgeting on principal and interest alone is the most common mistake first-time buyers make. The calculator above shows the whole picture — including PMI on conventional loans, MIP on FHA loans, and the VA funding fee.
Put 20% down to avoid PMI. Shop your homeowners insurance every year — premiums vary widely for identical coverage. Appeal your property tax assessment if it's high. Consider a 15-year term if cash flow allows: the payment is higher but the interest savings are enormous. And if you're a veteran, a VA loan removes monthly mortgage insurance entirely.
Not by definition — PITI is principal, interest, taxes, and insurance. But lenders count HOA dues in your housing expense when qualifying you, so include them when budgeting. Our calculator has an HOA field for exactly this reason.
Private mortgage insurance is technically the "I" for insurance in most lenders' math. On conventional loans with less than 20% down, PMI is added to your monthly payment until you reach roughly 20% equity, when it can be removed.
The classic guideline is 28% of gross monthly income for housing (front-end ratio) and 36% for all debts combined (back-end ratio). Many lenders approve up to 31/43, and some go higher. Use the Affordability tab above to see what different standards mean for your budget.
Principal and interest come from your loan amount, rate, and term using the standard amortization formula. Taxes are your annual property tax divided by 12, and insurance is your annual premium divided by 12. Add monthly mortgage insurance and HOA dues if they apply.
Yes. FHA loans add an upfront mortgage insurance premium of 1.75% (usually financed) plus an annual MIP paid monthly — which lasts the life of the loan if you put down less than 10%. VA loans have no monthly mortgage insurance at all, but most borrowers pay a one-time funding fee that's typically rolled into the loan.