Mortgage Payment Calculator
Get a complete picture of your monthly payment, including principal, interest, property taxes, insurance, and mortgage insurance. Covers Conventional, FHA, and VA loans with full amortization breakdown.
Affects PMI rate on conventional loans.
Property Tax & Insurance
$394/mo
$131/mo
Estimated Monthly Payment
$2,639
Loan amount: $315,000
LTV: 90.0%
Payment Breakdown
Total Interest Paid
$420,510
Total Cost (P&I only)
$735,510
Total Cost (with Tax & Insurance)
$950,025
PMI Removal Estimate
At your current payment schedule, PMI automatically drops off around month 112 (9 years, 4 months) when your balance reaches 78% of the original purchase price. You can request early removal once you reach 80% LTV with a current appraisal.
💡 Put $70,000 down (20%) to eliminate PMI entirely and save $851/year.
Email This Estimate
Send a copy of your payment breakdown and amortization summary to your inbox, great for comparing loan scenarios.
Equity vs. Remaining Balance Over Time
See how your equity grows and your balance shrinks over the 30-year loan term.
Amortization Schedule
Click any year to see the monthly breakdown.
What Makes Up Your Monthly Mortgage Payment?
Most homebuyers focus on the interest rate, but your actual monthly payment is made up of several components. Understanding each one helps you compare loan options accurately and budget with confidence.
Principal
The portion of your payment that reduces your actual loan balance. Early in your loan, this is a small slice. Most of the payment covers interest. Over time, the ratio shifts as your balance drops.
Interest
The lender's cost for making the loan, calculated monthly on your remaining balance. Your interest rate and loan program determine this number. Even a 0.25% rate difference can mean tens of thousands of dollars over the life of a 30-year loan.
Property Taxes
Your county assesses property taxes annually, but lenders collect them monthly into escrow so the bill gets paid on time. In Kern County, the effective property tax rate is approximately 1.35% of assessed value.
Homeowner's Insurance
Required by all lenders, your homeowner's insurance premium is collected monthly alongside your mortgage payment. Annual premiums vary based on coverage, home value, and location, typically 0.35%–0.65% of the home's value.
Mortgage Insurance (PMI / MIP)
Required when you put less than 20% down on a conventional loan (PMI) or any FHA loan (MIP). It protects the lender, not you, but it's the cost of buying with a smaller down payment. Conventional PMI can be removed; FHA MIP has different rules depending on your down payment amount.
HOA Dues
If you're buying in a community with a homeowner's association, monthly dues are an additional expense that lenders factor into your debt-to-income ratio. They don't go through escrow. You pay them separately.
Mortgage Insurance by Loan Program
How mortgage insurance works, and how much it costs, depends entirely on which loan program you use. Here's how the three major programs compare.
Conventional
- MI Type
- PMI
- Upfront
- None
- Monthly Cost
- 0.12%–3.30%/yr based on credit & LTV
- When It Ends
- Cancellable at 80% LTV (request) or 78% LTV (automatic)
Best option for buyers with 740+ credit and 20% down. PMI is fully removable.
FHA
- MI Type
- MIP
- Upfront
- 1.75% of loan (rolled in)
- Monthly Cost
- ~0.55%/yr
- When It Ends
- Life of loan if <10% down; 11 years if ≥10% down
Best for buyers with lower credit scores or limited savings. MIP is the main tradeoff.
VA
- MI Type
- Funding Fee
- Upfront
- 1.25%–3.30% (rolled in, one-time)
- Monthly Cost
- None
- When It Ends
- No monthly MI, ever
Best overall value for eligible veterans and service members. No monthly MI is a major advantage.
How to Lower Your Monthly Mortgage Payment
If the payment estimate from the calculator is higher than you'd like, here are the most effective ways to bring it down, and what each one requires.
Increase your down payment
High ImpactEvery extra dollar toward your down payment reduces your loan balance directly. Crossing the 20% threshold on a conventional loan also eliminates PMI, which can save $100–$400+ per month.
Improve your credit score before applying
High ImpactA credit score jump from 680 to 740+ can qualify you for a meaningfully lower rate and reduce your PMI cost by 50–80%. Even 60–90 days of focused credit improvement can make a measurable difference.
Choose a longer loan term
Moderate ImpactExtending from a 15-year to a 30-year term reduces your required monthly payment significantly, though you'll pay more total interest over time. Many borrowers use this flexibility to invest the difference or maintain emergency reserves.
Buy discount points to lower your rate
Moderate ImpactPaying 1–2 points upfront permanently reduces your interest rate. This is most effective when you plan to stay in the home long-term. Dan can calculate your exact break-even point for any buydown scenario.
Shop multiple lenders (use a broker)
Moderate ImpactRate differences of 0.25%–0.75% between lenders are common, especially for borrowers with average credit. Dan shops dozens of wholesale lenders simultaneously, something you can't do on your own, to find the most competitive rate and fee combination.
Consider a lower-priced home or different neighborhood
High ImpactIn Kern County, there's significant price variation between neighborhoods. Exploring areas near your target location that are $30,000–$50,000 less can meaningfully reduce your monthly payment without major lifestyle compromises.
Mortgage Payment Calculator FAQs
Common questions about how mortgage payments work, what affects your rate, and how to read your amortization schedule.
Calculator Disclaimer: The results shown are estimates for illustrative purposes only and do not constitute a loan commitment, rate lock, or pre-approval. Actual monthly payments will vary based on your specific credit profile, loan type, lender fees, property location, and current market rates. Property tax and insurance estimates are based on general regional averages and may differ from your actual costs. PMI rates shown reflect typical market ranges and will vary by lender. Dan Ardis NMLS# 1412272 · Barrett Financial Group NMLS# 181106.
Ready for Your Actual Rate?
The calculator gives you a solid estimate. Dan gives you the real number. Call (661) 342-9381 or apply online for a personalized rate quote based on your credit and situation.