Mortgage Calculator - PITI with PMI & HOA, Stress Test

Total monthly payment

Standard, Rent vs Buy and Stress Test modes

M

total monthly payment

P

loan amount: the price less the down payment

r

monthly rate: the annual rate ÷ 12

n

number of monthly payments: the term in years × 12

taxes + insurance + PMI + HOA

one twelfth of the yearly property tax and home insurance, plus monthly PMI (private mortgage insurance) and HOA (homeowners association) dues

The first part is principal and interest; at a 0% rate it is P ÷ n. Total cost counts PMI only until it ends, as set out below.

Source: Standard formula; no single publisher.

When PMI ends

Standard and Rent vs Buy modes

If the borrower is current, PMI ends automatically when the original payment schedule reaches 78% of the home's original value. It ends no later than the first day of the month after the loan's midpoint. A borrower may ask to cancel at 80%, and lenders may cancel earlier under their own rules. This calculator ends PMI at the earlier of the 78% date and the midpoint: after payment 180 at most on a 30-year loan. Extra payments move that date only if they pay off the loan first. When they bring the balance to 80% sooner, the results show when a borrower may ask. With Auto-Calculate PMI on, PMI is 0.5% of the loan a year under 20% down.

Source: Based on the Homeowners Protection Act, 12 U.S.C. 4901 and 4902 [1], as the CFPB explains it [2]. The 20% edge matches Fannie Mae's rule for mortgage insurance above 80% of the value [3]. The 0.5% rate is CalcTrail's own estimate; no publisher.

Highest home price

Affordability mode

P&I budget

what the monthly budget leaves for principal and interest

P

the largest loan the budget pays for

r

monthly rate: the annual rate ÷ 12

n

number of monthly payments: the term in years × 12

Property tax and home insurance are yearly percentages of the price, 1.2% and 0.5% unless you change them, and PMI is the 0.5% estimate above. All three depend on the price, so the calculator repeats the three lines until the price settles, within $100. At a 0% rate, P = P&I budget × n.

Source: Standard formula, solved for the loan; no single publisher. The tax, insurance and PMI rates are CalcTrail's own assumptions.

Refinance breakeven

Refinance mode

Breakeven (months)

months for the saving to repay the costs, rounded up

Monthly savings is the current principal and interest less the new. Both come from the first part of the payment formula above: the new loan is the price less the down payment, and the current one uses its balance, rate and years left. Points is their cost: 1% of the new loan for each point. With no saving there is no breakeven. The five-year net is Monthly savings × 60 - (Closing costs + Points). The Loan Calculator measures breakeven differently: it adds up the payments saved month by month.

Source: Points follow the CFPB's definition [4]. The breakeven and the five-year net are simple payback arithmetic; no single publisher.

Stress test

Stress Test mode

Two more scenarios use the same formula: property tax and insurance raised by the shock percentage, and both shocks at once. The five-year cost adds up M × 12 × (1 + e)^year for years 0 to 4, where M is the total monthly payment and e the annual escalation. That grows principal and interest too, though a fixed rate keeps them level.

Source: CalcTrail's own stress scenarios; no publisher.

Readiness score

Standard, Refinance and Stress Test modes

Strong

75 to 100

Moderate

55 to 74

Tight

below 55

Down payment

35 at 20% or more, 20 at 10% or more, otherwise 10

Housing ratio

35 at 28% or less, 20 at 36% or less, otherwise 5, or 15 with no income entered

Extra payment

10 for any extra payment

Stress

20 if the payment with rates 1 point higher and tax and insurance 10% higher stays within 120% of today's, otherwise 10

The score is out of 100. The four rows after the bands show the points each part adds. The housing ratio is the total payment ÷ gross monthly income. The down payment and housing-ratio edges read the percentage as shown, to one decimal: a housing ratio shown as 28.0% scores 35.

Source: CalcTrail's own score, not a lender's; no publisher. No primary source was found for its 28% or 36% housing-ratio edges.

Rent vs buy

Rent vs Buy mode

Worked year by year, as if you sold that year. Closing costs are 3% of the price, selling costs 6% of the sale and the investment return 5%, unless you change them. Upkeep is 1% of the home's value a year; tax and insurance stay flat. The renter invests the down payment and closing costs, then each year adds what owning cost beyond the rent, or draws on it when rent costs more. Money added during a year earns half a year's return. Breakeven is the first year buying's net cost is below renting's.

Source: CalcTrail's own comparison; no publisher. The tax benefit is based on IRS Publication 936 [5], simplified: it is each year's interest × your tax benefit rate. The deduction needs you to itemize, and covers interest on at most $750,000 of debt taken out after December 15, 2017 ($375,000 if married filing separately).