What is the US Mortgage?
A US mortgage payment is usually quoted as PITI — Principal, Interest, Taxes and Insurance. Lenders escrow the tax and insurance portions, so your actual monthly outgo is meaningfully higher than a principal-and-interest calculator suggests.
If your down payment is under 20%, you also pay PMI (private mortgage insurance), typically 0.3–1.5% of the loan annually, until you reach 20% equity.
Formula & worked example
Monthly total = P&I + property tax/12 + insurance/12 + PMI + HOA
Worked example: a $420,000 home with $63,000 down (15%) leaves a $357,000 loan. At 6.75% over 30 years, P&I is about $2,316. Add $385 property tax, $150 insurance and $164 PMI, and the real payment is roughly $3,015 — 30% more than the P&I figure alone.
How to use this us mortgage calculator
- Enter the home price and your down payment.
- Use the rate quoted by your lender, not the national average.
- Property tax rates vary hugely by state — from about 0.3% in Hawaii to 2.2% in New Jersey.
- Add HOA dues if the property has them; condos often run $200–600 a month.
Smart tips
- Put 20% down to avoid PMI entirely — on a $357,000 loan that saves about $164 a month, nearly $2,000 a year.
- PMI can be removed once you reach 20% equity; request cancellation rather than waiting for automatic removal at 22%.
- A 15-year mortgage carries a lower rate and dramatically less total interest, though the payment is higher.
- Shop at least three lenders. A 0.25% rate difference on $357,000 is about $58 a month and $21,000 over the loan.
- Budget 1–2% of home value annually for maintenance on top of PITI.
Frequently asked questions
What is PITI?
Principal, Interest, Taxes and Insurance — the four components of a typical escrowed US mortgage payment.
How much down payment do I need?
20% avoids PMI. Conventional loans allow as little as 3%, FHA 3.5%, and VA and USDA loans can require zero down.
When can I remove PMI?
You may request cancellation at 20% equity, and lenders must remove it automatically at 22% equity based on the original schedule.
Should I choose a 15 or 30-year mortgage?
A 15-year has a lower rate and far less total interest but a much higher payment. A 30-year offers flexibility; you can always pay extra.
Want the theory behind the numbers? Read our mortgage guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 8 Sep 2026. How we check these numbers.