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MORTGAGE CALCULATOR

Mortgage Calculator

Estimate your full monthly payment — principal and interest plus taxes, insurance, PMI, and HOA. Defaults reflect Texas property-tax norms.

$80,000 of $400,000

Texas avg ~2.0%

$0.00/mo

LTV 80.0% — no PMI required

Monthly P&I
$2,022.62
Total monthly (PITI + PMI + HOA)
$2,839.28
Monthly breakdown
Principal & interest
$2,022.62
Property tax
$666.67
Home insurance
$150.00
PMI
HOA
Loan summary
Loan amount
$320,000
Total interest
$408,142
Total of payments
$728,142
Payoff date
May 2056

Enter your contact info to download the PDF summary.

Estimate only. Actual rate, taxes, insurance, and PMI depend on your full loan profile. PMI shown is a static estimate (0.5% annual of loan amount); it actually drops as the loan amortizes below 80% LTV.

How to use this calculator

What goes into PITI.

PITI is mortgage shorthand for the four pieces of your monthly payment: Principal, Interest, Taxes, and Insurance. Most borrowers also pay PMI (private mortgage insurance) when their down payment is under 20%, and many pay HOA dues if their home is in a managed community. This calculator handles all five so you see the real all-in monthly number, not just the principal- and-interest figure that lender ads quote.

Principal and interest

Principal is the chunk of your payment that pays down the loan balance. Interest is the cost of borrowing — calculated on the remaining balance every month. In the early years of a loan, most of your payment is interest; the principal share grows steadily as the balance shrinks. The standard amortization formula is M = P × [r(1+r)n] / [(1+r)n−1] where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.

Why Texas property taxes are higher than the national average

Texas has no state income tax. To fund schools, counties, and municipal services, the state relies heavily on property taxes — collected at the county appraisal-district level. Average effective rates across the state run between 1.6% and 2.3%, with DFW counties (Collin, Dallas, Denton, Tarrant) typically in the 1.8% to 2.2% range. Your actual rate also depends on municipality, school district, MUD or PID overlays, and any homestead, over-65, disability, or veteran exemptions you claim. The default 2.0% in this calculator is a reasonable starting point for DFW; check your county appraisal notice for the exact rate on a specific address.

Home insurance and PMI

Lenders require homeowner's insurance to protect their collateral. Premiums vary widely by location, construction type, and coverage limits — the $1,800 default reflects a typical DFW single-family home, but coastal Texas and high-wildfire areas run materially higher. PMI (private mortgage insurance) protects the lender — not you — against default when your loan-to-value ratio is above 80%. It usually runs 0.3% to 1.5% of the loan amount per year; this calculator estimates 0.5% as a static mid-range. PMI naturally drops off once you reach 80% LTV through normal amortization, and you can request removal at 80% LTV or it cancels automatically at 78%.

What this calculator does not include

Closing costs, prepaid escrow setup, optional flood insurance, and any HOA-special assessments are not factored in. Mortgage insurance for FHA loans (MIP) follows different rules than conventional PMI — talk to a Q Mortgage broker for an FHA-specific quote. This calculator also assumes a fixed-rate loan; ARM payments change at adjustment dates and need separate modeling.

Texas reference

DFW property-tax cheat sheet

Collin County avg
~2.1%
Dallas County avg
~2.2%
Denton County avg
~2.0%
Tarrant County avg
~2.1%

Effective rates blend county, city, school, and special-district levies. Homestead exemption typically saves 10–20% off the assessed value before the rate is applied.

FAQ

Common questions.

If something is unclear, call us at (903) 402-5626 — we will answer.

What does this mortgage calculator include?
It calculates the full monthly payment commonly called PITI: principal and interest on the loan, monthly property tax escrow, monthly home-insurance escrow, PMI when your down payment is under 20%, and HOA dues. The headline number is principal and interest alone; the secondary number is the all-in monthly cost.
Why are property taxes set to 2% by default?
Texas has no state income tax, so school districts and counties fund services through property taxes. Average effective rates across Texas run roughly 1.6% to 2.3% depending on county and exemptions, and 2.0% is a reasonable mid-range default for the DFW metro. Your actual rate appears on your county appraisal notice; adjust the field to match.
How is PMI calculated here?
When your loan-to-value ratio exceeds 80% (i.e. you put less than 20% down), the calculator estimates PMI at 0.5% of the loan amount per year, charged monthly. This is a static estimate — actual PMI depends on your credit score, loan program, and lender, and it naturally drops as your loan amortizes below 80% LTV. You can override the auto value if your loan estimate has a specific PMI figure.
Does this account for closing costs?
No. This calculator estimates the recurring monthly payment only. Closing costs (origination, title, appraisal, escrow setup) typically run 2-4% of the loan amount and are paid once at funding, not monthly. Use the Affordability Calculator for a cash-to-close estimate.
Is this an actual loan offer?
No. This is an educational estimate. Your actual rate depends on your credit score, debt-to-income ratio, loan program (FHA, conventional, VA, jumbo), property type, and current market conditions. To see real numbers, request a written Loan Estimate.

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