Mortgage Calculator With Taxes and Insurance Explained
Understanding PITI (principal, interest, taxes, insurance) plus PMI and HOA so your budget matches reality.
What’s included in PITI
Principal and interest repay the loan; taxes and insurance are escrowed; PMI protects the lender when LTV > 80%.
Why taxes and insurance vary
County mill rates and assessed value set property taxes. Insurance depends on rebuild cost, location, roof age, and coverage choices.
Example breakdown
$500,000 home, 20% down, 6.10% fixed: P&I $2,427; taxes $500; insurance $120; HOA $80. Total $3,127/month.
How to estimate quickly
- Taxes: 0.9%–1.3% of value annually for many U.S. suburbs.
- Insurance: $800–$1,800 per year depending on state and coverage.
- PMI: 0.3%–1.5% annualized when down payment is under 20%.
FAQ
- Does PMI fall off automatically? Typically near 78% LTV; you can request removal at 80% with strong payment history.
- Can I waive escrow? Sometimes with 20%+ down and good credit, but you must budget taxes and insurance yourself.
- Will taxes rise? They can after reassessment or improvements; build a cushion.
Payments are estimates. Confirm local tax and insurance rates.
Use the live taxes and insurance calculator or the main mortgage calculator to test your numbers.