How the Monthly Payment Calculator Works

Your base principal & interest payment is calculated with the standard mortgage amortization formula:

where P is your loan amount (principal), r is your monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (30-year term = 360 payments). This spreads out a fixed payment so the loan is fully paid off by the end of the term, with more of each payment going to interest early on and more to principal later.

The calculator then layers your full PITI payment on top of that base figure: estimated property taxes and homeowners insurance (divided into monthly escrow amounts), plus PMI or FHA/VA mortgage insurance if your down payment is below the relevant threshold.

California rules & 2026 figures that apply

• Under California's Proposition 13, the base property tax rate is 1% of assessed value; with voter-approved local bonds and assessments layered on top, most Sacramento County parcels land at an effective rate of roughly 1.05%-1.3% (about 1.10% within Sacramento city limits) (JVM Lending, Sacramento Property Taxes 2026). Buying a home also triggers a one-time supplemental property tax bill once the county reassesses to the new purchase price.
• Under the federal Homeowners Protection Act, your servicer must automatically cancel private mortgage insurance (PMI) once your loan balance is scheduled to reach 78% of the home's original value (as long as you're current), and you can request cancellation in writing once you reach 80% (NCUA, Homeowners Protection Act summary).
• FHA loans charge an upfront mortgage insurance premium (UFMIP) of 1.75% of the base loan amount (financeable into the loan), plus an ongoing annual MIP - commonly around 0.55% per year on a 30-year loan with less than 5% down at typical loan amounts - built into the monthly payment (JVM Lending, FHA MIP 2026). Unlike conventional PMI, FHA MIP on many loans doesn't cancel automatically - refinancing into a conventional loan is the usual way off it.
• The 2026 FHFA baseline conforming loan limit for Sacramento County (1-unit) is $832,750, up 3.3% from $806,500 in 2025; CA high-cost counties top out at $1,249,125 (150% of the baseline) for 2026 (FHFA, 2026 Conforming Loan Limit Values).

Estimates only, not a commitment to lend. Figures above reflect publicly reported 2026 program limits and CA tax rules as of this writing and can change - confirm current numbers and your specific eligibility with one of our loan officers before making a decision. The Home and Commercial Loan Company, Inc. is an Equal Housing Opportunity lender, NMLS #1665729.