A mortgage payment has four parts — principal, interest, taxes, and insurance (PITI). At the current Freddie Mac 30-year average of 6.58% (week of July 23, 2026), a $352,480 loan runs about $2,246 a month in principal and interest before taxes, insurance, and any PMI.
A worked example at today's rate
Take the June 2026 national median existing-home price of $440,600 (National Association of Realtors) and put 20% down. That is $88,120 down and a $352,480 loan. At the July 23, 2026 Freddie Mac PMMS average of 6.58% on a 30-year fixed, the principal-and-interest payment works out to about $2,246 a month.
Run the same loan on a 15-year term at the July 23, 2026 PMMS 15-year average of 5.96% and the payment jumps to about $2,967 a month — but total interest falls to roughly $182,000. You pay about $721 more each month to save about $274,000 in interest. Our 15- vs 30-year mortgage calculator lets you compare the two side by side with your own numbers.
PITI: the four parts of a real payment
The formula above only covers principal and interest. Lenders escrow two more line items, and most budgets have to account for a fifth:
- ·Principal — the part of each payment that pays down what you borrowed.
- ·Interest — the lender's charge on the outstanding balance. Early in the loan, most of your payment is interest.
- ·Taxes — property taxes, usually collected monthly into an escrow account. Estimate yours with our property tax calculator.
- ·Insurance — homeowners insurance, also escrowed. Insurance has become a large share of the payment in many states.
- ·PMI — private mortgage insurance, required on most conventional loans with less than 20% down. See our PMI calculator.
What drives your monthly payment
Interest rate
Rate is the single biggest lever. On our $352,480 example, each half-point matters: at 6.08% the payment is about $2,131; at 7.08% it is about $2,364 — a swing of more than $230 a month for the same loan. Freddie Mac's weekly PMMS is the standard benchmark for where 30-year rates sit nationally.
Down payment
A bigger down payment shrinks the loan and can eliminate PMI. Conventional loans allow as little as 3% down, FHA as little as 3.5% at a 580+ credit score, and VA loans 0% for eligible borrowers — but anything under 20% on a conventional loan typically adds PMI of roughly 0.5% to 1.5% of the loan per year. On a $396,540 loan (10% down on our example), that is about $165 to $496 a month.
Loan term
A shorter term raises the monthly payment but slashes lifetime interest, as the 15- vs 30-year comparison above shows. There is no free lunch: you are trading monthly cash flow for total cost.
Taxes and insurance
These vary enormously by location. A national payment estimate can be off by hundreds of dollars a month once local property-tax rates and insurance premiums are added. Our metro and state cost guides break these down by area.
Ways to lower the payment
- Put more down to shrink the loan and drop PMI once you cross 20% equity.
- Buy points — paying discount points lowers your rate; check the break-even with our mortgage points calculator.
- Shop lenders — the same borrower can get materially different quotes; compare the APR, not just the rate, with our APR calculator.
- Extend the term to cut the monthly cost, accepting more total interest.
- Remove PMI once you reach 20% equity — you can request cancellation rather than waiting for automatic termination at 22%.
Not sure how much house fits your budget in the first place? Start with our affordability calculator, then come back here to model the exact payment. New buyers can walk the whole process in our First-Time Home Buyer Guide.
Methodology
Payment figures are calculated with the standard fixed-rate amortization formula using the Freddie Mac Primary Mortgage Market Survey average posted the week of July 23, 2026 (30-year 6.58%, 15-year 5.96%). The example home price is the National Association of Realtors' June 2026 national median existing-home sale price. PMI and down-payment figures reflect published 2026 ranges and program rules, cited below. Your actual rate, taxes, insurance, and PMI depend on your credit, location, and lender.
Sources
- Freddie Mac — Primary Mortgage Market Survey (rates, week of July 23, 2026) — accessed 2026-07-26
- National Association of Realtors — Existing-Home Sales, June 2026 (median price $440,600) — accessed 2026-07-26
- Fannie Mae — HomeReady / minimum down payment (3%) — accessed 2026-07-26
- Experian — How much does PMI cost (0.5%–1.5%/yr) — accessed 2026-07-26