Last updated July 18, 2026
Average 30-year fixed rate as of June 25, 2026: 6.49%; 15-year fixed: 5.84% (Freddie Mac Primary Mortgage Market Survey). Full table on the average rates page.
Where the payment gap actually comes from
Property tax alone can run under half a percent of a home's value per year in parts of the South and past two percent in parts of the Northeast, which on a $400,000 house is a difference of roughly $6,000 a year, or $500 a month, before insurance or PMI enter the picture. Two buyers quoted the same rate on the same loan amount can end up with payments hundreds of dollars apart once escrow gets added in, and it's the location, not the loan, driving that gap. Replace the default tax and insurance figures above with your county's actual numbers for a payment that means something.
What the payment is built from
Lenders bundle four things into one monthly bill, often shortened to PITI: principal and interest, which pay down the loan itself, plus property tax and homeowners insurance, collected monthly and held in escrow until the bill comes due. Under 20 percent down adds a fifth piece, private mortgage insurance, until enough equity builds up. This calculator keeps the four or five pieces separate so you can see which one is doing the work in your specific numbers.
The arithmetic, worked through
Principal and interest follow M = L times i, over 1 minus (1 plus i) to the negative n, where L is the loan amount. On a $400,000 home with $80,000 down, L is $320,000; at 6.5 percent over 30 years, i is 0.065 divided by 12, about 0.005417, and n is 360. That gives roughly $2,023 a month in principal and interest. Add $400 a month in property tax and $125 in insurance and the full payment lands near $2,548, with no PMI because the down payment cleared 20 percent. Drop the down payment to 10 percent and PMI at 0.5 percent of the loan adds close to $150 a month until 20 percent equity is reached.
Full amortization schedule
Principal-and-interest breakdown for every payment on your current numbers, not including tax, insurance, or PMI.
15-year versus 30-year, same loan
| Term | Monthly P and I | Total interest |
|---|---|---|
| 30 years | $2,023 | $408,000 |
| 20 years | $2,387 | $253,000 |
| 15 years | $2,788 | $182,000 |
Figures assume a $320,000 loan at 6.5 percent, principal and interest only. A 15-year term costs more every month and saves a large sum of interest over the life of the loan; which one fits depends on the rest of the budget, not just this table.
When PMI actually comes off
Under the federal Homeowners Protection Act, a lender must automatically cancel PMI once the loan balance reaches 78 percent of the home's original value, and a borrower can request cancellation earlier, at 80 percent, in writing. Property tax and insurance are not fixed either; a local reassessment or a jump in premiums can raise the escrow portion of the payment even on a fixed-rate loan, separate from anything the interest rate is doing.
Sources: CFPB Owning a Home, CFPB on private mortgage insurance.
Related calculators
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- Loan Calculator, for the principal-and-interest math alone
- APR Calculator, to compare offers with points and fees folded in