Mortgage Calculator with PMI and HOA

Condo or new-build with a small down payment? PMI and HOA dues can add hundreds a month on top of principal and interest. This calculator includes both.

Quick answer

A mortgage payment with PMI and HOA is principal and interest plus property tax, insurance, private mortgage insurance and association dues. On a $350,000 home with 10% down at 6.75%, PMI of 0.6% and $250 HOA, the total is about $2,896 a month — $853 more than principal and interest alone.

$
$
%
yrs
%
$
%
$
Total monthly payment
$2,896
Principal & interest
$2,043
Property tax
$320.83
Insurance
$125
PMI
$157.5
Loan amount
$315,000
For a $350,000 home with $35,000 down (10%), you borrow $315,000. Your all-in housing payment is about $2,896.42 per month, of which $2,043.08 goes to the bank. Because your down payment is under 20%, you also pay $157.50/month of PMI until you reach 20% equity. Over 30 years, interest alone totals $420,510.

Inputs are pre-filled with the example used on this page — change any number to see your own result. Built on our mortgage calculator.

Key takeaways

  • PMI applies to conventional loans when you put down less than 20%; HOA dues apply regardless of down payment.
  • HOA dues are usually paid to the association, not through escrow, but lenders still count them in your debt-to-income ratio.
  • Putting 20% down on the same home removes PMI and lowers the loan, cutting this example by about $385 a month.
HOA dues — Monthly or yearly fees paid to a homeowners association for shared costs such as landscaping, amenities, building insurance and reserves.

Why PMI and HOA change the picture

Many quick payment estimates show principal and interest only. For condos, townhomes and planned communities that can badly understate the real cost. PMI is charged as a yearly percentage of the loan — your rate depends mainly on credit score and down payment — and is split into monthly amounts. HOA dues are a fee set by the association and can rise over time or be supplemented by special assessments.

10% down vs 20% down on the same home

Keeping everything else the same — $350,000 price, 6.75% for 30 years, 1.1% property tax, $1,500 insurance and $250 HOA — compare two down payments:

  • 10% down ($35,000): loan $315,000, principal and interest $2,043.08, PMI $157.50, total $2,896.42 a month.
  • 20% down ($70,000): loan $280,000, principal and interest $1,816.07, no PMI, total $2,511.91 a month.

The extra $35,000 down saves about $385 a month. The HOA dues stay the same either way, so they deserve as much attention as the interest rate when you compare homes.

When PMI goes away

Under the federal Homeowners Protection Act, for most conventional loans on a primary home you can ask in writing to cancel PMI once your balance is scheduled to reach 80% of the original value, and the servicer must end it automatically when it is scheduled to reach 78%. Extra principal payments can get you to 80% sooner. FHA and VA loans follow different rules.

Worked example

With the default inputs, monthly property tax is $350,000 × 1.1% ÷ 12 = $320.83, insurance is $1,500 ÷ 12 = $125, PMI is $315,000 × 0.6% ÷ 12 = $157.50, and principal and interest on $315,000 at 6.75% for 30 years is $2,043.08. Add $250 HOA and the total is $2,896.42.

Methodology and sources

Principal and interest use the standard amortization formula. PMI is applied only when the loan is more than 80% of the price, at the yearly rate you enter. Property tax is a percentage of the price; insurance and HOA are added as entered. The estimate excludes closing costs and assumes PMI and HOA stay constant.

Sources: CFPB – When can I remove PMI from my loan? · CFPB – Buying a house · Investopedia – Amortization

Frequently asked questions

Is HOA included in my mortgage payment?

Usually not. HOA dues are normally paid directly to the association, but lenders include them when calculating how much you can borrow, so this calculator adds them to your monthly housing cost.

How much is PMI per month?

PMI is a yearly percentage of the loan divided by 12. At 0.6% on a $315,000 loan it is $157.50 a month. Your actual rate depends on credit score, down payment and the insurer.

Can I avoid PMI with less than 20% down?

Some options exist, such as lender-paid mortgage insurance (usually priced into a higher rate) or a piggyback second loan. VA loans have no monthly mortgage insurance; FHA loans have their own mortgage insurance premium.

Do HOA fees go up?

They can. Associations set budgets each year and may raise dues or charge special assessments for major repairs. Ask for the budget and reserve study before you buy.

Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated