Principal, interest, taxes, insurance, HOA and mortgage insurance, all in one number. Built on 2026 Conventional, FHA, VA and USDA rules and prefilled with this week’s national rate averages.
How each payment splits between principal and interest.
| Year | Principal | Interest | MI | Balance |
|---|
The calculator shows what a loan can look like. These are the targets we suggest so the payment still leaves room to build wealth.
Many loans allow a housing payment well above 30% of gross income.
In Dollars & Sense, we suggest keeping your full payment, including taxes, insurance and HOA, near 30% of gross monthly income.
You can buy with as little as 3% to 3.5% down, or 0% with VA and USDA.
In Dollars & Sense, we suggest 10% down as good and 20% as better. On a conventional loan, 20% down can eliminate PMI.
Lenders require cash for the down payment and closing costs, and some programs require reserves too.
In Dollars & Sense, we suggest planning for down payment, closing costs and reserves together. Your starter emergency fund stays separate.
These are educational targets from the Dollars & Sense Money Rules, Pat Collins’ financial education program. They are not lending requirements and not individual financial advice. Your loan approval is based on the program guidelines shown on this page. Learn about Dollars & Sense →
Lenders call it PITI: principal, interest, taxes and insurance. Mortgage insurance and HOA dues sit on top when they apply. Here is exactly how each piece is calculated above.
The standard fixed-rate amortization formula, rounded to the cent like a lender’s note.
Annual property tax and homeowners insurance divided by 12. Most lenders collect these monthly in an escrow account, so they are part of the payment you actually make.
| Program | Minimum down | Upfront fee | Monthly insurance | 2026 loan limit (1-unit) |
|---|---|---|---|---|
| Conventional | 3% (first-time programs), 5% standard | None | PMI if under 20% down, priced by credit score and LTV | $832,750 baseline, up to $1,249,125 in high-cost areas |
| FHA | 3.5% with 580+ credit | 1.75% UFMIP | 0.15% to 0.75% a year (0.55% for most 30-year loans) | $541,287 floor, up to $1,249,125 |
| VA | 0% | 1.25% to 3.3% funding fee (waived if exempt) | None | No limit with full entitlement |
| USDA | 0% | 1% guarantee fee | 0.35% a year | Set by household income limits |
Sources: FHFA 2026 conforming loan limits · HUD Mortgagee Letter 2023-05 (FHA MIP) · VA funding fee chart · USDA Single Family Housing Guaranteed Loan Program. PMI rates are market estimates; your actual premium is quoted by the mortgage insurer.
Lenders look at your debt-to-income ratio, not just the payment. Plug this payment into the DTI calculator to see where you land against Conventional, FHA, VA and USDA guidelines.
Under the Homeowners Protection Act, PMI cancels automatically when your balance is scheduled to reach 78% of the original home value. You can ask your servicer to remove it at 80% if your payment history is clean. Extra principal payments get you there sooner.
If you put at least 10% down, annual MIP ends after 11 years. With less than 10% down it lasts for the life of the loan, so most FHA borrowers remove it by refinancing into a conventional loan once they have 20% equity.
Your rate depends on credit score, down payment, loan type, points, property type and lock period. Taxes are based on your county’s actual assessment and insurance on your actual policy. Use this tool to plan, then get a written Loan Estimate for exact numbers.
Every extra dollar goes straight to principal, so it cuts total interest and shortens the loan. Enter an amount in “Pay it off faster” to see the interest saved and your new payoff date. Keep an emergency fund first, since prepaid principal is hard to get back out.
Review your real rate options, loan programs and cash to close with a licensed mortgage advisor before you make an offer.
This calculator provides estimates for educational purposes only and is not a loan offer, commitment to lend, or Loan Estimate. Default rates are national survey averages, not rates offered by Let’s Talk Home Mortgage or E Mortgage Capital, Inc. Actual payments, APR, mortgage insurance, taxes and insurance will vary. All loans are subject to credit, income, property and underwriting approval. Patrick Collins, NMLS #1628553. E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.
