How to Use a Mortgage Calculator

Home Price – Enter in the total value of the home you want to purchase. This could be an estimated value (if you are researching before you begin looking at homes!) or it could be the actual value of a home you are interested in purchasing.

Down Payment – Your down payment is what you are paying out of pocket to secure the home and loan. You can adjust this field by either dollar value or percent of the total home price to see how much money you may need saved before you can purchase your dream home. Keep in mind that some Loan Programs require a minimum down payment amount, ranging anywhere from 0% down for VA and USDA loans, 3.5% to 5% for most common loan types, and more depending on the loan type and your individual situation.

Loan Program – You can also adjust the term, or length, or your potential loan by choosing between 30-year fixed, 15-year fixed, as well as Adjustable Rate Mortgage (ARM) options. 30-year fixed mortgages are the most common loan term, offering lower monthly payments that can help new homebuyers afford their dream home. 15-year fixed loan terms will cost more on a monthly basis but can help save money over the long run.

Interest Rate – Your interest rate is affected by a variety of factors, including the type of loan, the total amount, your down payment, the current financial market, and more. If you haven’t been Pre-Approved, you can use our pre-set estimated interest rate to help estimate your expenses.

Private Mortgage Insurance (PMI) – While the required down payment for buyers may vary based on loan program requirements, down payments less than 20% require the buyer to pay for Private Mortgage Insurance, also called PMI. Mortgage insurance protects the lenders in case the buyer can no longer afford to pay back the loan. It’s common for buyers to refinance once they have at least 20% equity in their home.

Property Tax – Property Taxes are calculated based on a percentage of your home’s value, assessed by your local tax collector. You can learn more about property taxes (including a general overview) by visiting your local property tax collector site for details in your area.

Home Insurance – Home Insurance, also called Homeowners Insurance, is a policy that homeowners take in order to protect their assets in case of losses or damages. Depending on your home’s value and your policy coverage, your insurance premium may go up or down. Learn more details about Home Insurance here.

HOA Dues – Homeowner’s Associations (HOA) are organizations that help to maintain a community, subdivision or condominium’s property. HOAs typically manage common areas  (depending on the community) as well as other amenities when appropriate. In order to manage these items, HOAs will charge dues to their homeowners, which are paid monthly, quarterly or annually. You can learn more about HOA’s here.