Last Updated: May 2026Author: Financial Metrics TeamSources: CFPB — Owning a Home · Freddie Mac — PMMS
How to Use the Mortgage Calculator
Enter the home price, down payment percentage, interest rate, and loan term. Add your property tax rate and annual insurance costs. If your down payment is under 20%, PMI is included.
The calculator breaks down your total monthly payment into principal, interest, taxes, insurance, and PMI. It also shows total interest over the loan life and a 5-year amortization preview.
Mortgage Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
PITI = Principal & Interest + Property Taxes + Insurance + PMI
2026 Mortgage Rate Outlook
As of May 2026, 30-year fixed mortgage rates are approximately 6-7%, 15-year fixed rates around 5.5-6.5%, and ARM rates starting at 5-6%. Rates remain elevated due to Fed policy, but home prices continue rising in most markets.
Key Considerations for Home Buyers
- The 28/36 rule: Your housing payment should not exceed 28% of gross income. Total debt payments should not exceed 36%.
- PMI: If your down payment is under 20%, PMI costs 0.3%-1.5% of the loan amount annually. It automatically cancels when you reach 22% equity.
- Property taxes: Average US rate is ~1.1%, but varies widely by state (NJ ~2.4%, HI ~0.3%).
- Closing costs: Typically 2-5% of the purchase price, including appraisal, origination, title insurance, and transfer taxes.
Related Tools
- Home Affordability Calculator — How much house can you afford?
- Mortgage Refinance Calculator — Is refinancing right for you?
- Amortization Calculator — Full amortization schedule.