Mortgage Calculator with PMI + Taxes & Insurance

As a conservative rule of thumb, you should aim for a home price that is roughly 3 to 4 times your gross annual income, assuming you have no other significant debts. To be precise, adjust the Gross Monthly Income slider in our calculator and ensure the 'US Affordability Indicator' gauge stays below 28%. If it crosses into the red zone, you are over-leveraged according to standard lending guidelines.

A 30-year fixed mortgage offers much lower monthly payments, giving you flexibility and extra cash flow to invest in the stock market (which historically outpaces mortgage interest rates). A 15-year mortgage has higher monthly payments, but you secure a lower interest rate and pay drastically less total interest over the life of the loan. Choose 30-year for flexibility and investment leverage; choose 15-year for guaranteed debt elimination and lower total cost.

Any extra payments made above your minimum monthly amount are applied directly to the principal balance (assuming you specify this to your servicer). This reduces the outstanding balance upon which next month's interest is calculated. Just making one extra mortgage payment per year can shave 4 to 5 years off a 30-year loan and save tens of thousands of dollars in interest.

No. While your Principal and Interest (P&I) remains fixed on a fixed-rate mortgage, your property taxes and homeowners insurance premiums will fluctuate over time. Typically, as your home appreciates in value, the local government will reassess it, leading to higher annual property taxes. Your lender will then increase your monthly escrow withholding to cover the difference.