Four quick checks before you talk to your broker
Each tab below answers a different question — what will my payment be, how much house can I afford, is now a good time to refinance, and is buying discount points worth it. The math is the same math your loan officer uses; we've just laid it out so you can see how every input changes the answer.
What this calculator does
Plugs your loan amount, rate, and term into the standard amortization formula and adds your monthly tax + insurance + HOA. The result is the full monthly cost of owning that home — not just the loan payment.
Loan basics
The purchase price you're targeting.
Cash you bring to closing. Less than 20% usually means PMI; 0% only on VA / USDA programs.
The annual rate the lender charges. Locked once you accept terms.
How many years to pay off.
Taxes & insurance
A percent of home value, billed by your county. Most states are 0.5–2%.
Annual hazard / homeowners policy. Usually paid into escrow with your lender.
Monthly community / condo dues, if your home has them. Leave 0 if none.
Estimated monthly payment
$0Loan amount $400,000 · LTV 80%
Principal & interest
The actual loan payment
$0
Property taxes
County tax, escrowed monthly
$0
Home insurance
Yearly policy / 12
$0
HOA fees
Monthly community dues
$0
How we got there
Your loan amount is $400,000 ($500,000 home minus $100,000 down). We amortize that over 360 months at 6.5% to get a P&I of $0. Add property tax (1.2% of home value ÷ 12 = $0), insurance (annual ÷ 12 = $0), and HOA ($0), and you land at $0/mo — the all-in cost of the home.
Mortgage 101 — key terms used above
Tap to expand. 9 terms.
Mortgage 101 — key terms used above
Tap to expand. 9 terms.
Principal & interest (P&I)
The actual loan payment — what you owe the lender each month for the money you borrowed. Doesn't include taxes or insurance.
Escrow
A separate account your lender uses to collect property tax + homeowners insurance with each mortgage payment, then pays the bills on your behalf.
DTI (Debt-to-Income)
Total monthly debt payments ÷ gross monthly income. Lenders cap this at 43% conventional / 50% on aggressive non-QM programs.
LTV (Loan-to-Value)
Loan amount ÷ home value. 80% LTV = 20% down. Lower LTV usually means a better rate.
PMI (Private Mortgage Insurance)
Required when you put down less than 20% on a conventional loan. Extra ~0.3–1.5% of loan / yr; drops off automatically once you hit 78% LTV.
APR
Rate + lender fees expressed as a single yearly percentage. Always higher than the headline rate; the gap is mostly closing costs amortized.
Lock
Once you accept terms, your loan officer "locks" the rate so it can't move against you while the file finishes. Locks usually last 30–60 days.
Break-even
How many months of refi savings it takes to recover the closing costs of the refi. Refi makes sense when you plan to keep the loan well past break-even.
Conventional vs FHA / VA / USDA
Conventional loans follow Fannie/Freddie rules. FHA accepts lower scores; VA is for vets (no down); USDA is rural-area zero-down. Each has different DTI ceilings and PMI rules.