What Will Your Mortgage Really Cost?

Most payments include four parts: principal, interest, property taxes and homeowners insurance (often called PITI). If you put less than 20% down on a conventional loan, or use an FHA loan, mortgage insurance is added. HOA dues, if your neighborhood has them, are usually paid separately but still count toward your monthly housing cost.

Many calculators leave out taxes and insurance. In Texas, property taxes are among the highest in the country, so they can add hundreds of dollars a month. Including them gives you a more realistic number to budget around.

Private mortgage insurance (PMI) applies to conventional loans with less than 20% down. It can typically be removed once you reach 20% equity, and it ends automatically when your balance reaches 78% of the home's original value.

FHA loans have an upfront premium of 1.75% of the loan amount, usually added to the loan, plus an annual premium paid monthly. With less than 10% down, the annual premium generally lasts for the life of the loan unless you refinance.

No. VA loans have no monthly mortgage insurance. Most borrowers pay a one-time VA funding fee that can be added to the loan, and veterans receiving VA disability compensation are generally exempt from it.

It's an estimate. Your actual rate, payment and closing costs depend on your credit, income, loan program and the property. For real numbers, start a free pre-qualification and a loan officer will walk you through your options.