Mortgage Calculators

How This Calculator Works

Our payment calculator estimates your total monthly mortgage payment including:

• Principal & Interest — the core loan payment based on your rate, term, and loan amount.
• Property Tax — estimated at 1.25% of home value annually, split into monthly payments.
• Homeowners Insurance — estimated at $100/month (varies by location and coverage).
• PMI — private mortgage insurance, required when your down payment is less than 20%.

Tips to Lower Your Payment

• Increase your down payment to avoid PMI
• Improve your credit score before applying
• Consider a 15-year term for a lower rate
• Shop rates — even 0.25% saves thousands
• Ask about buying down your rate with points

Understanding Affordability

Lenders use your debt-to-income ratio (DTI) to determine how much you can borrow. Most loan programs allow up to 43% DTI, meaning your total monthly debts (including your new mortgage) shouldn't exceed 43% of your gross monthly income.

This calculator provides a conservative estimate. Your actual approval amount may vary based on credit score, assets, and the specific loan program.

What Counts as Debt?

• Car payments
• Student loans
• Credit card minimum payments
• Personal loans
• Child support / alimony

When to Refinance

Refinancing typically makes sense when you can lower your rate by at least 0.5% - 0.75%. Consider refinancing if:

• Rates have dropped since you got your loan
• Your credit score has improved significantly
• You want to switch from ARM to fixed
• You want to shorten your loan term
• You need to remove PMI

Refinance Costs

Keep in mind that refinancing typically costs 2-5% of the loan amount in closing costs. Make sure your monthly savings will recoup these costs within a reasonable timeframe (usually 2-3 years).