Mortgage payment calculator

What goes into a mortgage payment

Most payments include four parts, often called PITI: principal, interest, property taxes and homeowners insurance. If you put down less than 20% on a conventional loan, private mortgage insurance is added. Condos and many newer townhome communities also charge HOA dues, which lenders count in your payment even though you pay them separately.

Principal and interest stay the same for the life of a fixed-rate loan. Taxes and insurance are collected in an escrow account and can change each year when your county reassesses value or your insurer renews your policy.

Utah defaults used here

Utah property taxes are among the lowest in the West. Primary residences receive a 45% residential exemption, which is why the effective rate on a Salt Lake County home is roughly 0.5% to 0.6% of market value. We default to 0.55% and $1,500 per year for homeowners insurance. Adjust both for your city and home.

How to lower your payment

Increase your down payment to reduce the loan and remove PMI at 20%. Compare 30 and 20 year terms, since the rate on shorter terms is usually lower. Ask about temporary buydowns funded by seller credits, which can lower your rate for the first one to two years.