Estimate your monthly mortgage payment by entering the home price, down payment, mortgage rate, and loan term. See a full breakdown of principal, interest, taxes, and insurance.
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How to Calculate Your Monthly Mortgage Payment
Your monthly mortgage payment is made up of several components, often referred to as PITI: Principal, Interest, Taxes, and Insurance. Understanding each part helps you budget accurately and compare different home purchase scenarios.
- Principal: The portion of your payment that reduces the loan balance.
- Interest: The cost of borrowing, determined by your mortgage rate and remaining balance.
- Property Taxes: Typically collected monthly by your lender and held in escrow.
- Homeowners Insurance: Required by lenders to protect the property.
What is the Average Mortgage Payment in the US?
The average mortgage payment in the US is approximately $1,869 per month across all outstanding residential mortgages. However, if you were purchasing the median-priced home today, your payment would be significantly higher due to current home prices and interest rates.
How Mortgage Rates Affect Your Payment
Mortgage rates have a significant impact on your monthly payment. On a $400,000 home with 10% down ($360,000 mortgage) over 30 years:
| Mortgage Rate | Monthly P&I | Total Interest Paid |
|---|---|---|
| 5.0% | $1,933 | $335,740 |
| 6.0% | $2,158 | $416,840 |
| 7.0% | $2,395 | $502,057 |
| 8.0% | $2,642 | $591,010 |
A 1% increase in your mortgage rate adds roughly $250/month and over $80,000 in total interest over the life of the loan. See how rates have moved over time on our mortgage rate history page.
Down Payment and Your Monthly Payment
The size of your down payment directly affects both your monthly payment and whether you’ll need to pay private mortgage insurance (PMI). On a $400,000 home at 7%:
| Down Payment | Loan Amount | Monthly P&I | PMI Required? |
|---|---|---|---|
| 5% ($20,000) | $380,000 | $2,528 | Yes |
| 10% ($40,000) | $360,000 | $2,395 | Yes |
| 20% ($80,000) | $320,000 | $2,129 | No |
PMI typically costs between 0.5% and 1% of the loan amount annually and is required on conventional loans with less than 20% down. Learn more about typical down payments on our average down payment page.
Minimum Down Payments by Loan Type
| Loan Type | Minimum Down Payment |
|---|---|
| Conventional | 3% |
| FHA | 3.5% (credit score 580+); 10% (score 500–579) |
| VA | 0% |
| USDA | 0% |
| Jumbo | 5–10% |
15-Year vs. 30-Year Mortgage
Choosing a shorter loan term increases your monthly payment but saves substantially on interest. On a $360,000 mortgage at 7%:
| Loan Term | Monthly P&I | Total Interest Paid | Total Cost |
|---|---|---|---|
| 15 years | $3,235 | $222,329 | $582,329 |
| 30 years | $2,395 | $502,057 | $862,057 |
A 15-year mortgage saves nearly $280,000 in interest but requires $840 more per month.
Frequently Asked Questions
What is included in a mortgage payment?
A typical mortgage payment includes principal (paying down the loan), interest (the lender’s charge for borrowing), property taxes, and homeowners insurance. If your down payment was less than 20%, private mortgage insurance (PMI) is also included.
How much house can I afford on a $100,000 salary?
Using the 28% rule, your maximum monthly housing payment would be $2,333. At a 7% rate with 10% down, this could afford a home around $320,000–$350,000 depending on taxes and insurance in your area. Use our mortgage affordability calculator for a personalized estimate.
Should I make extra mortgage payments?
Making even small extra payments toward principal can significantly reduce your total interest and shorten your loan term. An extra $200/month on a $360,000 mortgage at 7% could save over $100,000 in interest and pay off your home nearly 7 years early.
