What Is HOA?
An HOA is an organization that manages shared amenities and enforces community rules in a neighborhood or condo building, funded by mandatory fees paid by residents.
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Monthly mortgage payment breakdown
What one monthly payment pays for. The loan payment is calculated; taxes, insurance and HOA dues are estimates you should replace with real quotes.
- Financing (calculated)
- $2,455
- Loan of $360,000
- Ownership costs (estimated)
- $550
- Tax, insurance, HOA
- Estimated monthly total
- $3,005
- Includes mortgage insurance
- Principal & interest$2,275
- Mortgage insurance$180
- Property tax (estimate)$400
- Homeowners insurance (estimate)$150
Show the numbers as a table
| Component | Type | Monthly | Yearly |
|---|---|---|---|
| Principal & interest | Financing (calculated) | $2,275 | $27,305 |
| Mortgage insurance | Financing (calculated) | $180 | $2,160 |
| Property tax (estimate) | Ownership (estimate) | $400 | $4,800 |
| Homeowners insurance (estimate) | Ownership (estimate) | $150 | $1,800 |
Formula
Principal & interest = Loan × r ÷ (1 − (1 + r)^−n), r = annual rate ÷ 12, n = years × 12Mortgage insurance = Loan × PMI rate ÷ 12 (conventional loan, under 20% down)Assumptions
- Fixed-rate loan; the rate stays the same for the whole term.
- Mortgage insurance applies to conventional loans with less than 20% down and stops once the loan reaches 78% of the original value.
- Property tax, insurance and HOA dues vary by location and change over time.
Related Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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