Mortgage Payment Calculator (PITI)

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Frequently Asked Questions (FAQ)

What is PITI in a mortgage?

PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing payment.

  • Principal: Pays down the loan balance.
  • Interest: The cost of borrowing money.
  • Taxes: Property taxes paid to the government.
  • Insurance: Homeowners insurance premiums.
How much house can I afford?

Lenders typically use the 28/36 rule:

  • Your housing expenses (PITI) should not exceed 28% of your gross monthly income.
  • Your total debt (housing + cars + credit cards) should not exceed 36% of your gross monthly income.
Should I choose a 15-year or 30-year mortgage?

A 30-year mortgage has lower monthly payments, making it more affordable, but you pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments, but you build equity faster and pay much less interest.