Mortgage calculator
Your full monthly payment on a Michigan home: the loan, property taxes, insurance, HOA and PMI. Change any number and the payment updates as you type.
How the payment is figured
Principal and interest use the standard fixed rate formula: the loan amount, the monthly rate and the number of payments. Taxes and insurance are divided by 12 because your lender collects them each month and pays the bills for you. PMI is added only when the down payment is under 20%, at the yearly rate you enter, on the loan amount.
One Michigan detail changes the math more than people expect: the seller's tax bill is not your tax bill. Michigan caps how fast a home's taxable value can rise while one owner holds it, and that cap ends when the home sells. The year after you buy, taxes are figured on the full assessed value, so a home the seller owned for 20 years can come with a much bigger bill for you. That's why this calculator starts taxes at a new owner's typical rate instead of the listing's current bill. The property tax post explains it in detail.
A worked example
| $350,000 home, 10% down, 6.5% | Monthly |
|---|---|
| Principal and interest on $315,000 | $1,991 |
| Property taxes, 1.8% a year | $525 |
| Insurance, $1,800 a year | $150 |
| PMI, 0.5% a year | $131 |
| Total | $2,797 |
Questions
What's included in a monthly mortgage payment?
Principal and interest on the loan, plus property taxes and homeowners insurance, which most lenders collect monthly in an escrow account. Condos and some subdivisions add an HOA fee, and loans with less than 20% down usually add private mortgage insurance (PMI).
How much are property taxes on a new home in Michigan?
It depends on the city, township and school district. For a new owner in Oakland, Macomb, Wayne, Livingston and Genesee counties, the typical bill runs about 1.8% of the price per year once the taxable value resets the year after the sale. The property tax estimator gives the number for a specific area.
When does PMI go away?
On a conventional loan, you can ask to cancel PMI once the balance reaches 80% of the original value, and it ends automatically at 78%. FHA mortgage insurance usually lasts for the life of the loan when you put down less than 10%.