Welcome to the most comprehensive Maryland Mortgage Calculator. Quickly estimate your monthly mortgage payment (PITI) including principal, interest, property taxes, and home insurance, tailored for the Maryland housing market.
Maryland Mortgage Payment Calculator
Estimated Monthly Payment (PITI)
$0.00
Detailed Calculation Breakdown
Maryland Mortgage Calculator Formula
The core monthly Principal & Interest (P&I) payment (M) is calculated using the following amortized loan formula:
$$M = P \frac{i(1+i)^n}{(1+i)^n – 1}$$
Where:
- P = Principal Loan Amount
- i = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Total Number of Payments (Loan Term in Years × 12)
The total monthly payment (PITI) is then:
$$PITI = M + \left( \frac{\text{Annual Tax}}{12} \right) + \left( \frac{\text{Annual Insurance}}{12} \right)$$
Formula Source: Investopedia – Mortgage Payment DefinitionVariables Explained
- Loan Amount: The principal balance you are borrowing after deducting your down payment.
- Annual Interest Rate: The nominal annual percentage rate (APR) of the loan.
- Loan Term (Years): The duration over which the loan will be repaid, typically 15 or 30 years.
- Annual Property Tax: The estimated yearly property tax due in your Maryland county, calculated monthly for escrow.
- Annual Home Insurance: The yearly premium for homeowners insurance, also factored into your monthly escrow payment.
Related Calculators
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- Maryland Property Tax Calculator
- Rent vs Buy Calculator
- Loan Amortization Schedule Tool
What is the Maryland Mortgage Calculator?
A mortgage calculator is a vital financial tool designed to estimate the monthly cost of a home loan. The term PITI is commonly used, standing for Principal, Interest, Taxes, and Insurance. While the Principal and Interest (P&I) portion is fixed for a fixed-rate loan, the Tax and Insurance (TI) portion is variable and managed through an escrow account.
This specific calculator uses Maryland-centric estimates for property taxes and insurance to provide a more accurate initial budget figure for homebuyers in the region. Property tax rates vary significantly across Maryland counties (e.g., Montgomery, Baltimore, Prince George’s), so using an accurate local estimate is crucial for planning your budget and determining affordability.
Understanding the breakdown of your monthly payment is the first step in securing a mortgage. It helps you assess how much of your payment goes towards reducing the principal (building equity) versus covering interest and escrow costs.
How to Calculate Your Payment (Example)
- Determine the Monthly Rate (i): Take the Annual Interest Rate (e.g., 6.0%) and divide it by 12, then by 100. (6.0 / 12 / 100 = 0.005).
- Determine Total Payments (n): Multiply the Loan Term (e.g., 30 years) by 12. (30 × 12 = 360 payments).
- Calculate P&I Payment (M): Plug the Loan Amount (P), Monthly Rate (i), and Total Payments (n) into the amortization formula.
- Calculate Monthly Taxes: Divide the Annual Property Tax (e.g., $4,800) by 12. ($4,800 / 12 = $400.00).
- Calculate Monthly Insurance: Divide the Annual Insurance (e.g., $1,200) by 12. ($1,200 / 12 = $100.00).
- Sum PITI: Add the P&I payment, Monthly Taxes, and Monthly Insurance to get the total estimated monthly payment.
Frequently Asked Questions (FAQ)
Is the annual property tax for Maryland accurate?
The default tax value is an average estimate. Maryland property tax rates are set at the county level and can vary greatly. You should adjust this input based on the exact property address or your target county (e.g., Anne Arundel, Howard County).
What does PITI stand for?
PITI is a mortgage acronym that stands for Principal, Interest, Taxes, and Insurance. It represents the four components that make up the vast majority of a homeowner’s monthly housing payment.
Do I need to include Private Mortgage Insurance (PMI)?
If your down payment is less than 20% of the home price, you will likely have to pay PMI, which is an additional monthly cost. This calculator does not automatically include PMI; you should add that separate cost to your final PITI calculation.
Can I use this calculator for an Adjustable-Rate Mortgage (ARM)?
No. This calculator is designed for fixed-rate mortgages. The calculation is only valid for the initial period before an ARM rate adjusts.