You can estimate your monthly mortgage payment if you know some basic information.

• How much do you plan to borrow?
• What is the loan’s interest rate?
• How long do you have to repay your loan (for instance, 15 or 30 years)? 
• Is private mortgage insurance required?
• Will the loan require an escrow account to pay for property taxes and homeowner’s insurance?

Your monthly payment will also likely include payments toward your escrow account (if you have one) for property taxes, homeowner’s insurance, and, when required, mortgage insurance. You can get estimates for these costs from your local tax assessor, insurance agent, and lender.

Your Good Faith Estimate (GFE) will estimate what your initial monthly payment will be for your loan principal, interest, and any mortgage insurance. It will also explain whether you are required to have an escrow account. Your initial Truth-in-Lending disclosure should also provide estimates of monthly payment information.

TIP: You should also make room in your budget for other monthly costs, like utilities, that are not part of your monthly mortgage payment but are part of the cost of owning a home.

TIP: When trying to figure out how much a mortgage will cost, don’t just focus on the initial monthly payment. Also look at:

• Whether the payment can go up
• How high it can go
• How long it will take you to pay off your loan
• Other fees and costs you will have to pay, such as closing costs, property taxes, and insurance