US Mortgage Calculator

The Danger of Standard Mortgage Calculators

Most real estate websites provide a basic mortgage calculator that only shows you the Principal and Interest (P&I). This creates a massive problem for first-time homebuyers because it drastically underestimates the true cost of owning a home.

Our US Mortgage Calculator calculates your true PITI (Principal, Interest, Taxes, and Insurance) to ensure you don't end up "house poor."

1. Principal and Interest (The Loan)

This is the actual repayment of the money you borrowed from the bank, plus the bank's fee (the interest rate). A 30-year fixed-rate mortgage is the standard in the US, meaning this portion of your payment will never change for 30 years.

2. Property Taxes (The Hidden Cost)

You have to pay taxes to your local government every single year based on the assessed value of your home. The average US property tax rate is around 1.1%, but it varies wildly. If you buy a $500,000 home in New Jersey (2.4% tax rate), you will owe $1,000 every single month just in property taxes!

3. Homeowners Insurance (Protection)

If you have a mortgage, your lender will legally require you to have homeowners insurance to protect the house from fire, theft, and natural disasters. Like taxes, your lender will usually collect this money every month and pay the insurance company on your behalf through an escrow account.

4. Private Mortgage Insurance (The Penalty)

If you cannot afford a 20% down payment, lenders consider you a risky borrower. To protect themselves, they force you to pay Private Mortgage Insurance (PMI) every month. PMI provides absolutely zero benefit to you; it only pays the lender if you get foreclosed on. Once you have built up 20% equity in your home, you can petition your lender to cancel the PMI.

The Mathematical Formula