How Mortgage Payments Work in 2026
Every part of your payment, explained — then calculated.
The four parts of a mortgage payment (PITI)
- Principal — the loan balance you're paying down
- Interest — the cost of borrowing, front-loaded in early years
- Taxes — property tax, collected monthly into escrow
- Insurance — homeowners insurance (and PMI below 20% down)
15 vs 30 years
A 15-year term has a higher payment but roughly half the total interest. A 30-year term is more affordable monthly but costs far more over the life of the loan. The right choice depends on your cash flow and how long you'll stay.
Rates in 2026
Rates have settled lower than their 2023 peak but remain above the pandemic-era lows. Your rate depends on credit score, down payment, loan type, and lender — always compare at least three quotes and consider buying points (see the points calculator).
Your payment, calculated
Your Results
Estimate only. Does not include property taxes, insurance, or PMI.
Frequently Asked Questions
What is a good mortgage rate in 2026?
Rates vary with the economy and your credit profile. Compare offers from at least three lenders and consider whether a 15-year or 30-year term fits your budget.
Does this include property tax and insurance?
No. Your full monthly payment (PITI) also includes property taxes, homeowners insurance, and possibly PMI if your down payment is under 20%.
How does the amortization schedule work?
Early payments go mostly to interest; later payments go mostly to principal. The schedule shows exactly how much of each payment reduces your balance.
Can I use this for a VA loan?
Yes — VA loans require zero down payment and no PMI, but include a one-time funding fee (2.15-3.3% for most buyers). Set down payment to 0% and ignore the PMI estimate; add the funding fee into the loan amount for a closer number.
Related Calculators
Related tools
- Mortgage Points Calculator — should you buy down the rate?
- Escrow Calculator — taxes and insurance in your payment
- Refinance Calculator — worth refinancing?
- How Much House Can I Afford?