Mortgage Calculator

What These Mortgage Calculator Fields Mean

• Loan Amount—the amount you borrow from the lender after your down payment. For example, if the home costs $500,000 and you put $100,000 down, the loan amount is $400,000.
• Down Payment—the money you pay upfront toward the home purchase. A larger down payment usually means a smaller loan, lower monthly payments, and less interest over time.
• Loan Term—how long you have to repay the mortgage. A 30-year loan usually has lower monthly payments, while a 15-year loan usually costs less in total interest.
• Interest Rate—the annual rate the lender charges for borrowing money. Even a small change in the rate can make a big difference in your monthly payment and total interest.
• Property Taxes—taxes paid to your local government based on the home’s assessed value. This calculator may estimate property tax as a percentage of the home price, such as 1.2%, but actual rates vary by state, county, and city.
• Home Insurance—insurance that helps protect the home against damage from events like fire, storms, theft, or certain accidents. Lenders usually require it when you have a mortgage.
• Private Mortgage Insurance PMI—an extra insurance cost usually required when your down payment is less than 20%. PMI protects the lender, not the homeowner. In this calculator, PMI is removed when the LTV Ratio drops below 80%.
• LTV Ratio—short for loan-to-value ratio. It compares your remaining loan balance to the home’s value. For example, if you owe $400,000 on a $500,000 home, your LTV is 80%. A lower LTV means you have more equity in the home.
• HOA Fee—a fee paid to a homeowners association if the property is in a managed community, condo building, or subdivision. It may cover shared services such as landscaping, security, pools, gyms, or building maintenance.
• Other Costs—additional homeownership expenses that are not part of the mortgage itself. This can include maintenance, repairs, utilities, pest control, or other recurring costs that come with owning a home.
• Total Out-of-Pocket—the estimated total amount you pay from your own funds over the life of the loan. This can include mortgage payments, taxes, insurance, PMI, HOA fees, other costs, and extra payments.
• Payoff Date—the estimated date when your mortgage balance reaches zero. Extra payments or biweekly payments can move this date earlier.
• Extra Payments—additional money paid toward your mortgage principal. These payments can be monthly, yearly, or one-time payments, and they may help reduce interest and shorten the loan term.
• Biweekly Repayment—a payment method where you pay half of your monthly mortgage payment every two weeks. Because there are 26 biweekly periods in a year, this often results in one extra full monthly payment each year.
• Benefits of Paying Extra—extra payments can reduce your loan balance faster, lower the total interest you pay, and help you become mortgage-free sooner. They can be especially useful early in the loan, when more of each payment goes toward interest.
• Drawbacks of Paying Extra—money used for extra mortgage payments is money you cannot use elsewhere. Before paying extra, it is worth considering emergency savings, higher-interest debt, retirement contributions, and whether your loan has any prepayment penalties.
• Home Affordability—an estimate of how much house you may be able to afford based on your income, debts, down payment, interest rate, and monthly housing costs. It is a helpful starting point, not a lender approval.
• Front-End Ratio—the share of your monthly income that goes toward housing costs, such as mortgage principal and interest, property taxes, homeowners insurance, PMI, and HOA fees.
• Back-End Ratio—the share of your monthly income that goes toward all debt payments, including housing costs plus credit cards, car loans, student loans, and other monthly debts.
• 28/36 Rule—a common guideline lenders use for conventional loans. It suggests keeping housing costs around 28% or less of gross monthly income, and total debt payments around 36% or less. Some lenders may allow higher ratios depending on credit score, loan type, and other factors.