US Mortgage Calculator — PITI
Complete monthly payment: Principal + Interest + Tax + Insurance + PMI.
Understanding PITI
In the US, your true monthly housing cost is PITI: Principal + Interest + Property Tax + Insurance. Lenders qualify you based on this total, not just P&I.
PMI — Private Mortgage Insurance
If your down payment is under 20%, you must pay PMI: typically 0.3% to 1.5% of the loan per year, added to your monthly payment. PMI drops off automatically at 78% LTV.
Mortgage Points
1 point = 1% of the loan amount, and typically reduces your rate by ~0.25%. Worth it if you keep the home 5+ years.
Property Tax
US average is 1.1% of assessed value. Ranges from 0.28% (Hawaii) to 2.21% (New Jersey). This is a major ongoing cost that Europeans often underestimate.
❓ FAQ
What is a good mortgage rate in 2026?▾
Around 6.5-7% for a 30-year fixed is typical. Excellent credit (740+) with 20% down gets the best rates.
How do I avoid PMI?▾
Put 20% down. Or use a piggyback loan (80/10/10). VA loans have no PMI. Once you have 20% equity, request PMI removal.
Should I buy points?▾
Break-even is typically 4-6 years. If you plan to stay long-term, buying 1-2 points can save thousands over the loan life.