Monthly mortgage payment = principal and interest + property taxes + homeowners insurance + mortgage insurance + HOA fees, if applicable
Principal and interest formula: M = P × [r(1 + r)^n] ÷ [(1 + r)^n – 1]
P = loan amount
r = monthly interest rate = annual interest rate ÷ 12
n = total number of monthly payments = loan term in years × 12
Add monthly property taxes by dividing annual property tax by 12
Add monthly homeowners insurance by dividing annual premium by 12
Add monthly mortgage insurance if required
Add monthly HOA fees if applicable
Total monthly payment = principal and interest + taxes + insurance + mortgage insurance + HOA fees
Example: $300,000 loan at 6% for 30 years
r = 0.06 ÷ 12 = 0.005
n = 30 × 12 = 360
Principal and interest ≈ $1,798.65 per month
Add other monthly costs to get the full mortgage payment