Mortgage Calculator with Taxes and Insurance

PITI: the four parts of a real mortgage payment

Principal repays what you borrowed. Interest is the lender's charge. Taxes — property taxes owed to your county, often 1–2%+ of the home's value yearly — are collected monthly into escrow. Insurance — the homeowners policy your lender requires — is escrowed the same way. On a $425,000 home with $85,000 down at 6.5%: principal and interest are $2,149, taxes add $350, insurance $150 — a total near $2,649 a month, before any PMI or HOA dues.

Why escrow matters to your budget

• Your lender pays the tax and insurance bills from the escrow account, but you fund it monthly — budget for PITI, not just P&I.
• When taxes or premiums rise (common in high-growth and high-risk areas), your monthly payment rises with them at the annual escrow analysis — even though your rate is fixed.
• Lenders may collect a cushion of up to two months of escrow charges at closing under federal rules, which raises your cash-to-close. See the closing cost calculator.

Tax and insurance rates vary wildly by state

Effective property tax rates run from about 0.3% in Hawaii and 0.5% in Colorado to 1.6% in Texas and over 2.3% in New Jersey. Home insurance has spiked in Florida, Louisiana and wildfire-prone Western counties — sometimes $400+ a month on mid-priced homes. Never copy a friend's PITI from another state; always price the specific property. For the payment without extras, use the standard payment calculator; for insurance against default specifically, see the PMI calculator; and for income-based limits that include all of PITI, the affordability calculator.