Frequently Asked Questions
What's included in a mortgage payment?
A full mortgage payment is often called "PITI" — Principal, Interest, Taxes, and Insurance. Principal reduces your loan balance. Interest is the lender's charge for borrowing money. Taxes are collected monthly and paid to your county annually. Insurance protects your home and is required by lenders. If your down payment is under 20%, you'll also pay PMI (Private Mortgage Insurance) until you reach 20% equity.
How much house can I afford?
A common rule is the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs, and no more than 36% on total debt payments. On $80,000 per year ($6,667/mo), that means housing costs under $1,867/mo. But your real number depends on your down payment, local tax rates, HOA fees, and other debts. Use our
Home Affordability Calculator to get a precise figure.
When does PMI go away?
PMI is automatically removed when your loan balance reaches 80% of the original home value (i.e., 20% equity) based on your amortization schedule, per the Homeowners Protection Act. You can also request removal earlier if your home has appreciated and you can document 20% equity through a new appraisal. FHA loans have different rules — MIP (Mortgage Insurance Premium) may last for the life of the loan depending on your down payment.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but you pay dramatically less interest over the life of the loan — often 40–60% less. A 30-year mortgage has a lower payment, giving you more monthly flexibility. Many financial advisors suggest a 30-year mortgage if you'll invest the difference; the math can work in your favor if your investments earn more than your mortgage interest rate. Use the term buttons above to compare payments side by side.
What interest rate should I put in?
Use today's average 30-year fixed rate as a starting point — rates change daily. As of 2026, 30-year fixed rates have been ranging from mid-6% to 7%+. Your actual rate will depend on your credit score, down payment, loan type, and lender. Generally: 760+ FICO gets the best rates; 700–759 is good; below 680 expect higher rates. For the most accurate estimate, get a pre-approval quote from 2–3 lenders.