Calculate the full monthly cost of owning a home — principal, interest, property tax, insurance, HOA, and PMI (PITI). See your true monthly payment, not just principal and interest.
Full monthly PITI cost
Your real monthly housing cost is far more than principal and interest. Lenders measure PITI — Principal, Interest, Taxes, and Insurance — plus HOA dues and PMI when applicable. Property taxes (often 1%–2% of home value per year) and homeowners insurance are usually collected monthly into an escrow account, and if your down payment is under 20% you'll also pay private mortgage insurance (PMI), typically 0.3%–1.5% of the loan per year.
For example, a $400,000 home with 20% down at 6.5% over 30 years has about $2,022 in P&I, plus $400/mo tax and $150/mo insurance — roughly $2,572/month all-in (no PMI at 20% down). Knowing the full PITI is essential for budgeting and for passing a lender's debt-to-income test, which is based on the total payment, not just P&I.
Principal and interest — the loan payment itself, set by loan amount, rate, and term.
Property tax and homeowners insurance, usually escrowed and paid monthly with your mortgage.
PMI applies with under 20% down and drops off at 20% equity. HOA dues apply in many condos and planned communities.