What this mortgage payment includes
The estimate combines fixed-rate principal and interest with the property tax, homeowners insurance, and HOA amounts you enter. Tax and insurance are divided by 12 for a monthly planning estimate.
Loan amount = home price × (1 − down payment percentage)
Principal and interest = P × r ÷ [1 − (1 + r)^−n]
Estimated monthly payment = principal and interest + annual tax ÷ 12 + annual insurance ÷ 12 + monthly HOA
Principal and interest = P × r ÷ [1 − (1 + r)^−n]
Estimated monthly payment = principal and interest + annual tax ÷ 12 + annual insurance ÷ 12 + monthly HOA
Mortgage payment versus total housing cost
The result does not include private mortgage insurance, closing costs, mortgage insurance premiums, utilities, maintenance, changing escrow amounts, or a variable interest rate. Use the loan calculator when you already know the amount borrowed and only need principal-and-interest repayment.