Main specifications
Home value
$
Down payment
$
Down payment in percentage
%
Mortgage amount
$
Interest rate
%
Loan term
yrs
Payment frequency
Monthly
Taxes, insurances and fees
One-time expenses
$
Mortgage insurance type
Borrower-Paid (BPMI)
Annual PMI rate
%
Annual property tax
%
Homeowner insurance
$ /year
HOA fees
$/month
Mortgage summary
Monthly payment breakdown
Payoff dateMay. 18, 2041
Payment$1,469.18 monthly
Down payment & costs at closing$15,000.00
Loan principal$135,000.00
Total interest$69,978.40
Taxes, fees and insurances$133,632.81
Total payment$353,611.21
Principal with interest$854.08
PMI (until Oct. 18, 2024)$70.31
Property tax$240.63
Homeowner insurance$104.17
HOA fee$200.00
Balances and schedules
Display
chart of balances

If you are looking for a mortgage calculator with taxes and insurance (or a mortgage calculator with PMI and taxes and insurance), you've found the right place. You can use the present tool to estimate the expected additional cost of your mortgage which may come in the form of different types of taxes, insurances, or fees.

What's more, you can analyze these expenses from different angles. You can check the total and monthly payment breakdown, or follow your mortgage payments and balances through a chart of balances and a payment schedule table.

In this article, we introduce the mortgage payment calculator with taxes and insurance. You can also get more insight into related terms in the FAQ section, for example:

  • What is private mortgage insurance (PMI) and what is mortgage insurance premium?
  • How is mortgage insurance calculated and how to get rid of mortgage insurance?
  • What is homeowners insurance and what does homeowners insurance cover?
  • What is property tax payment?

What is mortgage insurance?

Mortgage insurance is an insurance policy that compensates lenders for losses due to the default of a mortgage loan. It lowers the risk to the lender in case you fall behind on your payments. Mortgage insurance may allow you to qualify for a loan that you might not otherwise be able to get.

How is mortgage insurance calculated?

Mortgage insurance is calculated as a percentage of the mortgage loan amount. For example, if your loan is $100,000, and your annual mortgage insurance is 1.0 percent, you'd pay $1,000 for mortgage insurance in a year. You can learn more about how mortgage insurance is calculated using the Omni Calculator's mortgage calculator with PMI and taxes and insurance.

How to use the mortgage calculator with taxes and insurance?

To use the calculator, you need to set the parameters in its first two sections. In addition, you can input more information about extra payments in the advanced mode.

1. Main specifications

  • Home value - the purchasing price of the property.
  • Down payment and down payment percentage

This is the part of the home value that you can pay before you get the mortgage. Its percentage (which is also related to the LTV ratio) is crucial when applying for a mortgage. It often represents the main obstacle to getting a loan. The required minimum varies depending on the loan provider and the related legislation. In the US, for example, the minimum down payments range from 3.5% (FHA loans) to 20-25% of the purchase price. Furthermore, since a smaller down payment is typically associated with a higher risk for the lender, it also affects the interest rate and cost of Private Mortgage Insurance (PMI).

  • Mortgage amount - The amount you need to borrow from the bank in order to make the purchase. This constitutes the principal of your loan.

  • Interest rate

This is one of the most crucial factors you need to consider when applying for a mortgage. In general, it refers to the annual interest rate in nominal terms, and it doesn't incorporate additional factors that might alter the rate of interest charged on your mortgage. Such factors are, for example, the process of compounding and its frequency, which indicates how often the interest is applied to the principal. Measures that taken into accountcompounding, such as the Annual Percentage Yield (APY) or Effective Annual Rate (EAR), give you a better guideline in this relation. Another useful indicator is the Annual Percentage Rate (APR), which takes into consideration the fees and other charges involved in the loan.

  • Loan term

It's the term in which you need to pay off the loan and fulfil the condition set out by the mortgage contract. Note, that in some cases, you can accelerate the repayment of the principal by making extra payments. In this way, the amortization term, which is the actual mortgage payoff time, will be shorter.

  • Payment frequency

You may have several options of regularity for making payments. You can choose monthly, (accelerated) bi-weekly, or (accelerated) weekly payment in this tool.

  • Interest calculation method (advanced mode)

This refers to the way interest is handled during the loan term. More precisely, the compounding frequency is the regularity with which your bank applies the annual rate of interest to the principal's balance. While in the US and UK it is typically monthly, in Canada, compounding occurs semi-annually.

  • Date of the first payment (advanced mode) - You can set any future date for the first payment due date.

2. How much is mortgage insurance? Taxes, insurances, and fees:

  • One-time expenses - Set here any expenses (except PMI mortgage insurance) paid at closing. This cost will appear in the payment schedule's first period.
  • Mortgage insurance type - You may choose Borrower-Paid (BPMI) or Single-Premium (SPMI) mortgage insurance. This insurance aims to protect the lender in case a borrower defaults on the mortgage. Real estate mortgage companies in the US typically require this when the down payment is less than 20 percent of the home value. It usually costs between 0.5% to 1.5% of the entire loan amount on an annual basis. Check our FAQ section to learn what mortgage insurance premium is.
  • Annual PMI rate (for BPMI) - The Private Mortgage Insurance rate, which, in the US, costs between 0.5% to 1.5% of the total loan amount on an annual basis. Note, that you can cancel this additional fee after your loan principal reaches a particular threshold (typically 20 percent of the home value).
  • PMI threshold (for BPMI in advanced mode) - You may set a threshold other than 20 percent.
  • Type of PMI finance (for SPMI) - You may finance your SPMI upfront in lump sum payment at closing, or sometimes you can finance it into the loan. In the latter case, the cost of your insurance is spread out over the whole loan term. While this may mean your monthly (or bi-weekly/weekly) payments are lower than at BPMI, you may end up with higher expenses as interest is also calculated on the amount.
  • Single PMI rate (for SPMI) - used for determining the cost of the PMI mortgage insurance paid at closing or financed into the loan.
  • PMI premium (for SPMI) - The cost of your PMI mortgage insurance.
  • Annual property tax payment - Administered by the local government and utilized for road maintenance and costs of other public services. It is typically based on the value of the property. In the US, its rate is usually around 0% to 4% of the home value, depending on your home location.
  • Homeowner insurance - An insurance policy that provides compensation for damage, loss, or injury of property and its belongings in case of fire, theft, or other accidents.
  • HOA fees - Homeowners association fee that covers the expenses of maintaining and improving the property. To learn what HOA fee is and what do HOA fees cover, check the FAQ section below.

3. Extra payment specification (in advanced mode)

  • Periodic extra payment - The amount of money you add to your payment in each period.
  • Yearly extra payment - You can set one extra mortgage payment a year or two payments with their specific payment date.
  • Lump-sum prepayment - Here, you can set a single, one-time extra payment on a given day.

After setting up the above parameters, you can read the results through the following sections of the mortgage calculator with taxes and insurance.

Results of the mortgage payment calculator with taxes and insurance

The mortgage calculator with taxes and insurance presents the results in a few forms:

1. Mortgage summary

Two tables appear in this section. The first summarizes the main details of your total mortgage payment. For example, you can check how much the expected interest charges are or how much you will pay in taxes, fees, and insurances. The second table represents the breakdown of your monthly (or bi-weekly/weekly) payment.

2. Balances and schedules

  • Chart of balances

On this graph, you can easily follow the progression of your yearly balances. You can check how much loan (principal) is waiting to be repaid or how much the accumulated interest and additional cost are at different points in time.

  • Table of payment schedule

This comprehensive table will come to your aid if you would like to check any detail on your balances at a specific date. Also, you can check in the table how much is the scheduled due payment at any date.

  • Total payment breakdown in percentage

We designed this simple graph to demonstrate how your total mortgage is built up. With a quick glance, you can check the proportion of the principal (loan amount), the down payment with possible one-time expenses, the total interest, and the additional costs as a percentage of the total payment.

FAQ

How much is mortgage insurance?

Typically the yearly cost of mortgage insurance is about 0.5-1.5% of the loan amount. So, for example, a $220,000 loan, mortgage insurance would cost around $1,100-$3,300 annually or around $120-275 per month.

What is mortgage insurance premium?

A mortgage insurance premium (MIP) is a payment made by homeowners who take out loans backed by the Federal Housing Administration (FHA). FHA-backed lenders apply MIPs to protect themselves against higher-risk borrowers who are more likely to default on mortgages.

What is private mortgage insurance?

Private mortgage insurance (PMI) protects the lender in case you default. You're usually required to pay for PMI if you make a down payment that's less than 20% of the home value.

How to get rid of mortgage insurance?

To stop paying mortgage insurance, the total paid amount in proportion to the home value must reach 20 percent. So, to get rid of mortgage insurance, you may make a prepayment or increase the monthly payment on your mortgage. In any case, you can ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home's original appraisal price. When the balance drops to 78%, the mortgage servicer is required to eliminate PMI automatically.

What is HOA fee?

HOA fee or homeowners association fee is money typically paid monthly by homeowners living within the HOA association to help maintain all properties, amenities, and common areas within the community.

What do HOA fees cover?

For condominium owners, HOA fees typically cover the costs of maintaining the building's common areas, for example, lobbies, swimming pools, or elevators. In many cases, the fees cover some common utilities, such as water/sewer fees and garbage disposal.

What is homeowner's insurance?

Home insurance, or homeowner's insurance, is a type of property insurance covering private residence. The average homeowners insurance costs about $1,445 annually.

What does homeowners insurance cover?

Homeowners insurance typically covers damage, loss, or any injury of property and its belongings in case of fire, theft, or other accidents.

How much does average homeowners insurance cost?

Homeowner's insurance costs an average of $1,445 annually. Still, premiums can fluctuate massively between states, from $598 annually in the least expensive state to $2,559 annually in the most expensive state.

What is property tax?

Property taxes are taxes levied on real estate by governments, typically on the state, county, and local levels. Property taxes are one of the oldest forms of taxation.

Disclaimer of the mortgage calculator with PMI taxes and insurance

You should consider the mortgage calculator with taxes and insurance as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive helpful feedback and advice.

Tibor Pal, PhD candidate
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