Whatโs included in this payment?
This is the principal & interest (P&I) portion โ the core loan repayment. Your full monthly housing cost also includes property tax, homeowners insurance, PMI (if your down payment is under 20%) and any HOA dues, which the lender collects in escrow.
15-year vs 30-year
A 15-year loan has a higher monthly payment but far less total interest and a lower rate. A 30-year loan keeps payments low and frees cash flow, at the cost of much more interest over time.
How much can you afford? The 28/36 rule
A common lender guideline is the 28/36 rule: keep your total housing payment (PITI) under 28% of gross monthly income, and all debt payments under 36%. So on a $9,000-a-month household income, aim for a full housing cost near $2,520 or less. Because this calculator shows only principal & interest, leave headroom for property tax, insurance and any PMI before you decide a payment is comfortable.