How much house can I afford?

A general rule is that your total monthly housing payment should not exceed 28% of your gross monthly income. This includes principal, interest, taxes, and insurance (PITI). However, consider your other debts and expenses when determining what you can comfortably afford.

Should I put 20% down on my home?

Putting 20% down helps you avoid PMI and often gets you better interest rates. However, it's not always necessary. FHA loans allow as little as 3.5% down, and conventional loans can go as low as 3%. Consider your financial situation and local market conditions.

What is PMI and when can I remove it?

Private Mortgage Insurance (PMI) protects the lender if you default. It's typically required when you put down less than 20%. You can usually remove PMI when you reach 20% equity in your home, either through payments or appreciation.

How does the loan term affect my payment?

Longer terms (like 30 years) result in lower monthly payments but more interest paid over time. Shorter terms (like 15 years) have higher monthly payments but significantly less total interest. Choose based on your budget and financial goals.

Should I pay points to lower my interest rate?

Points are upfront fees to reduce your interest rate. Each point typically costs 1% of your loan amount and reduces your rate by about 0.25%. It makes sense if you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments.

Mortgage Calculator – Free Home Loan Calculator

Quick and easy mortgage calculator. Estimate monthly payments, total interest, and amortization schedule for your home loan.

Mortgage Calculator – Free Home Loan Calculator

Quick and easy mortgage calculator. Estimate monthly payments, total interest, and amortization schedule for your home loan.

Home Price*

Total price of the home

Down Payment*

Amount paid upfront

Interest Rate (%)*

Annual interest rate

Loan Term (years)*

Length of the mortgage

$1,500

Monthly Payment

Principal

Interest

Understanding Your Mortgage Payment

A mortgage calculator helps you estimate your monthly home loan payments based on the loan amount, interest rate, and term. Understanding these payments is crucial for budgeting and determining how much house you can afford.