Down Payment (different from closing costs)

A down payment, not to be confused with closing costs, is the amount of money you pay upfront toward the purchase of a home, with the rest covered by a mortgage loan. While many loans require a down payment—typically between 3% and 20%—some loan programs offer 100% financing, meaning no down payment is needed. These options are especially helpful for qualified buyers, such as those using VA or USDA loans. The size of your down payment can also affect your monthly payments and whether you’ll need to pay for private mortgage insurance (PMI).

Closing Costs

The fees and expenses you pay when you finalize a home purchase. They incude things like loan fees, title services, and taxes - usually totaling 2% to 5% of the home's price. 

Loan Term

Your loan program can affect your interest rate and monthly payments. Choose from 30-year fixed, 15-year fixed, and more in the calculator.

Loan Type

There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate.

Interest Rate

This field is pre-filled with the current average mortgage rate. Your actual rate will vary based on factors like credit score and down payment.

Property Tax Rate

The mortgage payment calculator includes estimated property taxes based on the home's value. You can edit this in the advanced options.

Home Insurance

Home insurance or homeowners insurance is typically required by lenders, depending on the loan program. You can edit this number in the mortgage calculator advanced options.

Mortgage Escrow

After closing on your home, escrow becomes part of your monthly mortgage payment. Your lender uses this escrow account to set aside money for important expenses like property taxes and homeowners insurance. Instead of paying those large bills all at once, a portion is collected each month along with your mortgage, making it easier to manage. When the bills are due, your lender pays them directly from the escrow account on your behalf, helping ensure everything stays up to date.

HOA Fees

A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association.