Mortgage Purchase Calculator with PITI
Model the full monthly cost of homeownership — principal, interest, taxes, insurance, PMI, and HOA — then stress-test extra principal payments and loan recasts against lifetime interest and time to payoff.
Loan Details
Purchase price of the property.
= $125,000 down. Loan amount: $500,000.
Taxes, Insurance & PMI
Annual property tax. Typical: 1.0–2.5% of home value depending on locale.
Annual homeowners insurance premium.
Monthly homeowners association dues. Leave at 0 if not applicable.
Not applicable — LTV is 80.0% (under 80%).
Acceleration
Extra principal paid each month, on top of the standard P&I payment.
Loan Recast
Total PITI
$3,935
P&I: $3,160
Time Saved
0.0 Yrs
Interest Saved
$0
Monthly Payment Breakdown
P&I
$3,160
Tax
$625
Insurance
$150
Balance Trajectory
Amortization Schedule
| Year | Balance | Principal | Interest |
|---|---|---|---|
| 2026 | $494,411 | $5,589 | $32,335 |
| 2027 | $488,448 | $5,963 | $31,961 |
| 2028 | $482,086 | $6,362 | $31,562 |
| 2029 | $475,298 | $6,788 | $31,136 |
| 2030 | $468,055 | $7,243 | $30,681 |
| 2031 | $460,327 | $7,728 | $30,196 |
| 2032 | $452,081 | $8,246 | $29,678 |
| 2033 | $443,283 | $8,798 | $29,126 |
| 2034 | $433,896 | $9,387 | $28,537 |
| 2035 | $423,881 | $10,016 | $27,908 |
| 2036 | $413,194 | $10,686 | $27,238 |
| 2037 | $401,792 | $11,402 | $26,522 |
| 2038 | $389,626 | $12,166 | $25,758 |
| 2039 | $376,646 | $12,981 | $24,944 |
| 2040 | $362,796 | $13,850 | $24,074 |
| 2041 | $348,018 | $14,777 | $23,147 |
| 2042 | $332,251 | $15,767 | $22,157 |
| 2043 | $315,428 | $16,823 | $21,101 |
| 2044 | $297,478 | $17,950 | $19,974 |
| 2045 | $278,326 | $19,152 | $18,772 |
| 2046 | $257,892 | $20,435 | $17,490 |
| 2047 | $236,089 | $21,803 | $16,121 |
| 2048 | $212,826 | $23,263 | $14,661 |
| 2049 | $188,004 | $24,821 | $13,103 |
| 2050 | $161,521 | $26,484 | $11,441 |
| 2051 | $133,264 | $28,257 | $9,667 |
| 2052 | $103,114 | $30,150 | $7,774 |
| 2053 | $70,945 | $32,169 | $5,755 |
| 2054 | $36,622 | $34,323 | $3,601 |
| 2055 | $0 | $36,622 | $1,302 |
Modeling Assumptions
- Interest compounds monthly using the standard amortization formula.
- Property tax and insurance assumed constant — actual amounts adjust annually.
- PMI assumed constant while LTV exceeds 80%; auto-cancels at 78% LTV in practice.
- Extra payments applied directly to principal each month.
- Loan recast assumes lender allows re-amortization and ignores typical $150–$500 recast fee.
About the Mortgage Purchase Calculator
BASIS Strategy's mortgage purchase calculator models the full monthly cost of homeownership — not just the loan payment most calculators show. The headline number you see, Total PITI, includes principal and interest plus property taxes, homeowners insurance, private mortgage insurance (PMI) where applicable, and HOA dues. This typically runs 25 to 40 percent higherthan the P&I figure free calculators advertise.
Key concepts this calculator models
- PITI (Principal, Interest, Taxes, Insurance)
- The four standard components of a monthly mortgage payment when escrowed. BASIS adds PMI (auto-calculated when LTV exceeds 80 percent) and HOA dues to produce the actual monthly outflow you should budget.
- Loan-to-Value Ratio (LTV)
- The loan amount as a percentage of the home price. An LTV above 80 percent triggers PMI; PMI cancels automatically at 78 percent LTV. Use the Home Price entry mode to see LTV calculated in real time.
- Loan Recast (Re-amortization)
- A one-time lender service in which a large principal payment causes monthly payments to drop, with the same rate and payoff date. Different from a refinance — no new loan, no new closing costs, no credit check.
- Extra Principal Payment
- Additional money paid against principal each month on top of the standard P&I payment. Shortens the loan and reduces total interest without requiring a recast or refinance.
When to use this calculator
Use the purchase calculator when comparing offers, sizing a down payment against PMI, deciding between 15-year and 30-year terms, or modeling whether extra principal payments meaningfully change your payoff trajectory. The Home Price entry mode is best for prospective buyers; the Loan Amount mode is best for borrowers whose loan size is already determined.
Mortgage calculator questions
Plain-language answers about PITI, PMI, escrow, and loan recasts. These answers also feed the structured data that helps AI search and large language models cite this tool accurately.
What is PITI and why does it matter?
PITI stands for Principal, Interest, Taxes, and Insurance— the four components of a typical monthly mortgage payment. Many simple calculators only show principal and interest (P&I), which understates your true monthly housing cost by 25–40 percent.
PMI (private mortgage insurance) is added when the loan-to-value ratio exceeds 80 percent, and HOA fees apply where present. BASIS shows full PITI plus PMI and HOA so the headline number matches what you actually pay.
How does a loan recast work?
A loan recast (also called re-amortization) is when you make a large lump-sum payment toward principal and the lender recalculates your monthly payment over the remaining term. The interest rate and payoff date stay the same, but your required monthly payment drops because the balance is smaller.
Recasts typically cost a small fee ($150–$500) and require a minimum lump sum (often $5,000–$10,000). Not all loans are eligible — FHA, VA, and jumbo loans frequently are not. Confirm with your servicer before modeling.
How is PMI calculated and when does it go away?
Private mortgage insurance (PMI) is typically 0.3% to 1.5% of the original loan amount per year, charged monthly. It applies when the loan-to-value (LTV) ratio at origination exceeds 80 percent — i.e., when your down payment is less than 20 percent.
By law, lenders must automatically cancel PMI when the loan reaches 78% LTV based on the original amortization schedule, or you can request cancellation at 80% LTV. BASIS uses a default PMI rate of 0.75% annually, which you can adjust.
Why does my monthly payment include taxes and insurance even when I haven't told my lender about them?
Most lenders require an escrow account for property taxes and homeowners insurance, especially when the down payment is less than 20 percent. Each month you pay 1/12 of the annual amounts into the escrow, and the lender pays the bills when due.
This is what makes PITI the practical monthly figure rather than P&I. Even when escrow is optional, factoring taxes and insurance into your budget gives you a realistic affordability picture.
Does paying extra principal each month achieve the same result as velocity banking?
Often, yes — and with far less complexity and risk. Paying $1,000 extra in principal directly to your mortgage every month accelerates payoff and saves interest without any HELOC, without variable-rate exposure, and without requiring discipline running your transaction account through a credit line.
Velocity banking can outperform extra principal only when the average-daily-balance arbitrage on the HELOC outweighs its higher nominal rate and the discipline cost. For most borrowers, the simpler strategy wins. BASIS lets you model both side by side.