What is included in my monthly mortgage payment?

This simple calculator will determine the principal and interest portion of your monthly payment – but in most cases your payment will also include escrows for property taxes and insurance.  The escrow amount will be 1/12 of the annual insurance premium and 1/12 of the annual property tax bill.  Even if you do not escrow, you will still be responsible for these expenses.  We must use them in calculating your debt ratio, which is one of the keys to your preapproval.  Read the bottom of the page for a ballpark guestimate of escrow amounts for insurance and taxes.

Your PITI payment is the figure that includes principal, interest, taxes, and insurance.  So, for a $400,000 home in Chapel Hill, with a $320,000 30 year fixed rate mortgage at 6.00%, the PITI payment would be $1919 (principal and interest) + $100 (insurance) + $517 (property taxes) = $2536 per month.

If you have an HOA fee, you will pay that amount directly to the HOA, and so won’t be part of your monthly payment to your lender.


Homeowner’s InsuranceChapel Hill Property TaxesDurham
Property Taxes
Raleigh Property Taxes
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* These are all estimates, to give you an idea of what to expect.  Property tax bills are of public record so we can find the actual tax bill for a specific property online.