Free Mortgage Calculator 2026 — Monthly Payment with PMI, Taxes & Insurance

Using the 28% rule: $80,000 ÷ 12 = $6,667/month gross × 0.28 = $1,867 maximum monthly payment. At 6.5% over 30 years, that supports a loan of roughly $295,000. Add a 10% down payment ($33,000) and you're looking at homes up to about $328,000. Factor in property taxes and insurance (which reduce available budget) and a more conservative target is $280,000–$300,000 total purchase price.

At 6.5% for 30 years: $1,896/month. At 7.0% for 30 years: $1,996/month. At 6.5% for 15 years: $2,615/month. These are principal and interest only — add property taxes and insurance (typically $400–$700/month) for your true monthly housing cost. Use the calculator above to see exact figures for any rate and term.

Conventional loans typically require a minimum 620 credit score, though 740+ earns the best rates. FHA loans allow scores as low as 580 with 3.5% down, or 500 with 10% down. The difference between a 620 and 760 score can be 0.5–1.0% on your interest rate — on a $350,000 loan that's $115–$230/month and $41,000–$83,000 over 30 years.

The 30-year offers lower payments and flexibility; the 15-year saves enormous interest. On $350,000 at 6.5%: 30-year costs $2,212/month but $446,320 in interest; 15-year costs $3,051/month but only $199,180 in interest — a $247,140 saving. If you can comfortably afford the 15-year payment without straining your budget, it's usually the mathematically superior choice. If the higher payment would leave you cash-strapped, choose 30-year and make extra payments when possible.

Private Mortgage Insurance (PMI) protects the lender if you default. It's required on conventional loans when your down payment is below 20%. PMI typically costs 0.5–1.5% of the loan amount annually — on a $315,000 loan that's $1,575–$4,725/year added to your payments. You can request PMI cancellation once you reach 20% equity (usually after several years of payments plus any home appreciation).

The most effective strategies are: (1) Make one extra payment per year toward principal — this alone saves 4–6 years on a 30-year mortgage; (2) Round up monthly payments — paying $2,300 instead of $2,212 adds up significantly; (3) Refinance to a shorter term when rates allow; (4) Apply windfalls (tax refunds, bonuses) to principal. Always confirm your lender applies extra payments to principal, not future interest.

Amortization is the process of paying off a structured loan through equal periodic payments that cover both principal and interest. Each payment is the same amount, but the proportion shifts over time: early payments are mostly interest, late payments are mostly principal. An amortization schedule shows every single payment broken down — month 1 through the final month — which our calculator generates automatically.

The interest rate is the base cost of borrowing — used to calculate your monthly payment. APR (Annual Percentage Rate) includes the interest rate plus all lender fees (origination fees, points, broker fees) spread over the loan term. APR is always higher than the interest rate and is the more accurate figure for comparing loan offers from different lenders. When comparing mortgages, compare APRs, not just interest rates.

Assuming 20% down ($100,000) → $400,000 loan. At 6.5% for 30 years: $2,528/month in principal and interest. At 7.0%: $2,661/month. Add ~$600–$900/month for property taxes and insurance, bringing total PITI to approximately $3,100–$3,400/month. At the 28% rule, you'd need a household income of around $133,000–$145,000 to comfortably afford a $500,000 home.