How much house can I afford on my income?

A common guideline caps total housing costs at 28% of gross monthly income. A $3,273 PITI payment implies roughly $140,000 of household income under that rule. Lenders often approve debt-to-income ratios up to 43-50%, but approval limits and comfortable budgets are different numbers.

What does PMI cost and when does it go away?

Private mortgage insurance typically runs 0.3-1.5% of the loan per year (this calculator estimates 0.5%, about $169/month on a $405,000 loan). It applies when you put down less than 20%, and you can request removal once you reach 20% equity; it must drop automatically at 22% under federal rules.

How much does the interest rate actually matter?

On a $405,000 30-year loan, each 0.5 percentage point is roughly $130 a month and about $47,000 over the life of the loan. That's why buying points, improving credit before applying, and comparing at least three lenders have such outsized payoffs.

15-year vs 30-year — what's the tradeoff?

A 15-year loan at the same balance carries a much higher payment but cuts lifetime interest by roughly 60%, and 15-year rates typically run about half a point lower. A middle path many buyers use: take the 30-year for flexibility and prepay principal when cash flow allows.

What costs does this calculator leave out?

Closing costs (typically 2-5% of the purchase price), maintenance (a common budget is 1% of home value per year), HOA dues if applicable, and utility increases. Those don't affect your loan payment but they belong in the affordability decision.

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Mortgage payment calculator

The full monthly check — principal, interest, taxes, insurance, PMI, and HOA. We show each line so you can see where the payment actually goes.

Loan details

Home price$450,000

Down payment10% · $45,000

Interest rate6.43%

Loan term30 yr

Ownership costs

Property tax rate1.10%

Homeowners insurance$1,800/yr

HOA dues$0/mo

PMI is included. Down payments under 20% trigger private mortgage insurance — typically 0.5%/yr of the loan. You can usually drop it at 78% LTV.

Monthly payment · PITI

$3,273

Loan of $405,000 · down payment $45,000 · lifetime interest $509,853

Principal & interest

$2,541

Property taxes

$413

1.10% of home value / yr

Homeowners insurance

$150

$1,800 / yr

PMI (mortgage insurance)

$169

Drops at 78% LTV

Show the mathExpand →

Monthly P&I uses the standard amortization formula:

M = L · r(1 + r)ⁿ / ((1 + r)ⁿ − 1)

L = loan amount · r = monthly rate (annual ÷ 12) · n = total months (years × 12).

Taxes = price × property-tax-rate ÷ 12. Insurance = annual ÷ 12. PMI applies when down payment is under 20%, estimated at 0.5%/yr of the loan.

Real quotes include title, escrow, and origination fees we don't model here — shop 3 lenders and compare the Loan Estimate line-by-line.

Quick answer

What's the real monthly payment on a $450,000 home?

With 10% down and a 30-year loan at 6.43% (the Freddie Mac national average for the week of July 2, 2026), the $405,000 mortgage costs $2,541 a month in principal and interest. Add property tax (~$413 at a 1.1% rate), homeowners insurance (~$150), and PMI (~$169 because the down payment is under 20%) and the realistic PITI payment is about $3,273 a month — plus roughly $509,853 of lifetime interest if you keep the loan full term.

$2,541/mo

P&I payment

~$3,273/mo

Full PITI

$509,853

Lifetime interest

6.43% (PMMS 7/2/26)

Rate used

Frequently asked questions

How we built this tool

How this calculator runs the math

Step 1

Full PITI, not just P&I

Most calculators stop at principal & interest. We add property taxes, homeowners insurance, PMI (when applicable), and HOA so the monthly number reflects real life.

Step 2

PMI fires below 20% down

Standard conforming loans. PMI is estimated at 0.5% of the loan / year and drops automatically at 78% LTV under federal law.

Step 3

Doesn't include closing costs

Title, escrow, origination, and appraisal are one-time — they belong in the refinance break-even calculator, not the monthly payment.

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