Mortgage Calculator: Understanding Total Cost of Homeownership

PITI: The Four Components of Every Payment

Principal (reducing the loan balance), Interest (cost of borrowing at the note rate), Taxes (property tax, typically 1-2% of home value annually), and Insurance (homeowner's insurance + PMI if applicable). Many online calculators show only P&I, but PITI is the true monthly cost and what lenders use for debt-to-income qualification. Our calculator breaks down all four components.

When PMI Drops Off

PMI (Private Mortgage Insurance) is required when the down payment is <20%. PMI automatically terminates when the loan reaches 78% of the original property value (the "automatic termination" date). You can request cancellation at 80% LTV. Our calculator models PMI and shows the exact month it drops off, helping you plan for that expense reduction.

Modeling Refinancing Scenarios

Use the amortization table to find your refinancing break-even point. Compare total interest paid on the current loan (from today forward) vs the new loan minus closing costs. If the break-even period is shorter than your expected time in the home, refinancing makes financial sense. Our calculator supports scenario comparison across different rates and terms.