Mortgage Calculator with Homeowners Insurance
Homeowners insurance is required by virtually all mortgage lenders and adds $80–$250 per month to your housing cost. This calculator includes insurance pre-filled at the national average of $1,500/year so you can see your true payment.
1 Loan Details
2 Monthly Costs
Include PMI
Required when down payment < 20%
Estimated Monthly Payment
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Enter your loan details to see your payment
Total Interest Paid
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Over loan lifetime
Total Cost
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Principal + interest
Loan Amount
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Amount financed
Down Payment
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Of home price
Monthly Payment Breakdown
Balance Over Time
Rate Comparison
How your payment changes with different interest rates
| Rate Scenario | Monthly P&I | Total Interest |
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| Enter loan details above to see rate scenarios | ||
Why lenders require homeowners insurance
The house is the lender's collateral, so every mortgage requires hazard insurance that covers at least the cost to rebuild. As with taxes, the premium is usually collected monthly into escrow. A $1,500/year policy adds $125 to each payment.
The national average premium is about $1,500–$2,400 a year for a typical home, but location matters more than price. Premiums in Florida, Louisiana, Texas and Oklahoma often run two to three times the national average because of hurricane, hail and wind risk.
What standard policies don't cover
Standard homeowners policies (HO-3) exclude flood and earthquake. If the home is in a FEMA Special Flood Hazard Area, your lender will require separate flood insurance, which can add $700–$3,000+ a year. Coastal areas may also have separate wind or hurricane deductibles of 2%–5% of the dwelling coverage.
Get insurance quotes before you make an offer. A high premium can change affordability as much as a quarter-point rate move.
How to lower your premium
Raise your deductible, bundle with auto insurance, and ask about credits for a new roof, storm shutters, monitored alarms or impact-rated windows. Re-shop the policy every year or two, because escrow will absorb increases without you noticing.
Frequently Asked Questions
How much does homeowners insurance add to a mortgage payment?
Typically $100–$250 a month. The national average is about $1,500–$2,400 a year. High-risk states like Florida and Louisiana can be $4,000–$6,000+ a year.
Is homeowners insurance required to get a mortgage?
Yes. Every lender requires hazard insurance for at least the rebuild cost, with the lender named as mortgagee. Flood insurance is also required if the home is in a FEMA high-risk flood zone.
Is homeowners insurance the same as mortgage insurance (PMI)?
No. Homeowners insurance protects you and the lender against damage to the house. PMI protects only the lender if you default, and it is charged when you put less than 20% down.