# Mortgage Calculator

## Let's calculate your monthly mortgage payment

The dollar amount you expect to pay for a home
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This is the initial payment you put toward the cost of your new home. How much do you plan to put down? You could put little-to-no money down depending on your loan type. However, when you enter a higher down payment into the mortgage calculator, it lowers your estimated monthly payment
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\$0 Monthly Payment | 0% Mortgage Rate

## Mortgage Calculator

Are you looking toÂ buy a new home? Would you like to estimate your monthly mortgage payments beforehand? A home is a large purchase so it's important to find out on the front end the amount you could expect to pay on a monthly basis. You can use our mortgage payment calculator to easily estimate your monthly payment.

### How do I use a mortgage payment calculator?

Just enter the home price, your down payment amount, the interest rate, and the loan term, then press calculate and our mortgage calculator does the rest! It quickly takes the guesswork out of knowingÂ how much home you can afford.

With our advanced mortgage calculator, you can:

• Change the down payment to see how it would impact your monthly payment.
• Compare monthly payments for different home prices. Change the home price in the mortgage calculator to see how it affects your monthly payment.
• See how shortening or lengthening the loan term affects your monthly payment.
• Mix and match different factors based on the loan options you are considering.
• Vary the interest rate to see how much you might save or pay based on rate changes.

## Mortgage Calculator: Using our Home Loan Calculator

Home Price

The dollar amount you expect to pay for a home.

Down Payment

This is the initial payment you put toward the cost of your new home. How much do you plan to put down? You could put little-to-no money down depending on your loan type. However, when you enter a higherÂ down paymentÂ into the mortgage calculator, it lowers your estimated monthly payment.

Interest Rate

This is the cost of financing your home. The mortgage calculator has aÂ preset interest rate of 3.551%. However, you can adjust this rate to see how it affects your monthly mortgage payment. Interest rates change daily based on market trends. Typically, your lender will determine your interest rate based on the perceived risk of lending you money to finance your home.

Here are some of the factors that influence their decision:

• Loan Type
• Credit History
• Loan Amount
• Down Payment Amount

Want to lock-in your mortgage interest rate? Read up on the benefits of aÂ mortgage rate lock!

Loan Term

How long do you plan to finance your home? A shorter-term loan will generally have a lower interest rate than a longer-term loan. On the other hand, a longer-term loan will offer a lower monthly payment.

Here are some of the common loan terms entered into the calculator:

• 15-Year Fixed Rate MortgageÂ - A home loan paid over a term of 15 years. It will have a higher monthly payment but a lower interest rate than a 30-year mortgage.
• 30-Year Fixed Rate MortgageÂ - A home loan paid over a term of 30 years. It will have a lower monthly payment but a higher interest rate than a 15-year mortgage.
• I CAN MortgageÂ - A home loan that allows you to choose the term of your mortgage. You can finance your home for the number of years you want. You can enter 1, 5, or 10 years into the mortgage calculator to see how it would change your monthly mortgage payment.

Private Mortgage Insurance

If you enter a down payment of at least 20% of the homeâ€™s purchase price into the mortgage calculator, Private Mortgage Insurance (PMI) will not be added to your monthly payment. For example, a 20% down payment on a \$300,000 home is \$60,000.

PMI is required if you make a down payment of less than 20% or if you have less than 20% equity when you refinance; it may be canceled once you exceed 20% equity.

PMI guarantees that the lender gets paid if the borrower defaults on the loan. The PMI calculator defaults to .28 but PMI varies according to your credit score and the size of your down payment, it is usually an annual charge between 0.25% and 1.5% of the loan amount.

Want toÂ stop paying mortgage insurance? We can show you how!

### How do I lower my monthly mortgage payment?

Our mortgage payment calculator can be the first step is understanding where you might be able to lower your costs each month.

There are a few proven ways of making sure you pay less every month:

• Donâ€™t pay for PMI:Â a down payment of at least 20% will mean not having to pay for private mortgage insurance each month. This is especially important to consider if you are thinking about anÂ FHA loan, where you could be paying mortgage insurance for the entire life of the loan.
• Purchase less house:Â while it may seem obvious to many, a smaller home loan means a smaller monthly mortgage payment.
• Take out a loan with a longer lifespan: with a longer loan term, your monthly payments will be lower; however, youâ€™ll end up paying more in interest over the additional years.
• Find a lower interest rate:Â Not only can putting down more than 20% eliminate the need to pay mortgage insurance, but youâ€™ll also end up with a lower interest rate as well.

### Can my mortgage payments increase?

Yes, it is possible your monthly mortgage payment could go up in certain circumstances:

• If yours is an adjustable-rate mortgage
• If your property taxes or homeowner insurance payments increase
• If your mortgage loan servicer assesses a fee for late payments

### How much home can I afford?

In theory (and in the view of most lenders), you should not have a higher debt-to-income ratio than 28%. In large measure, the smaller your monthly mortgage payments relative to your income will mean an easier time keeping up with your payments. Bear in mind that taxes and home insurance costs usually increase over time.

## Go Beyond Our Mortgage Calculator

Have questions about using the mortgage payment calculator? Wondering how much house you can afford? Whether you need help withÂ real estate investingÂ orÂ loans for first time home buyers, we're here to help with your home financing needs.