Principal and interest
The part that repays the loan and pays the lender for the use of money. On a fixed-rate loan this portion stays the same for the life of the loan.
Taxes
Property taxes are set by local governments and can change each year as assessed values and tax rates change.
Insurance
Lenders require homeowners insurance, and flood insurance for homes in designated flood zones. Premiums can change at each renewal.
Mortgage insurance
- Conventional: private mortgage insurance (PMI) when equity is below the investor threshold; it can be removed under the Homeowners Protection Act once requirements are met.
- FHA: an upfront and an annual mortgage insurance premium (MIP).
- VA: no monthly mortgage insurance, but a one-time funding fee unless exempt.
- USDA: an upfront guarantee fee and an annual fee.
Escrow accounts
Many loans collect taxes and insurance monthly in an escrow account. Your servicer analyzes the account each year, so the total payment can rise or fall even on a fixed-rate loan.
HOA dues
Usually paid directly to the association, but lenders count them when qualifying you.
Use the calculator with your own estimates for each piece. Results are estimates only.
Keep reading
This page is general education. Program rules change; confirm current requirements with the official sources linked here and with a licensed lender.