The typical rule of thumb is to pay 20 percent of the home’s price as your down payment, although some mortgage loans require as little as 3.5 percent down. Your down payment reduces the total amount of your mortgage loan, so the more money you put down, the lower your payments will be – or the more expensive a house you can buy.  In addition to avoid PMI (private mortgage insurance) which can add a nice little chunck to your monthly payment there has to be a minimum of 20% equity to avoid paying this.  20% down takes care of this.  

Your loan program can affect your interest rate and monthly payments. Choose from 30-year fixed, 15-year fixed, and more in the calculator. 

The shorter term (15 years) your payment will be higher of course and interest rates vary but the amount of interest savings with this term is stagering.  

There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate thus qualifying for a higher purchase price. 

This field on the calculator above is pre-filled with the current average mortgage rate. Your actual rate will vary based on factors like credit score and down payment. 

Home insurance or homeowners insurance is typically required by lenders, depending on the loan program. You can edit this number in the mortgage calculator advanced options. Also keep in mind if you are buying in a high “fire” zone you will also need to purchase fire insurance which is done through the state.  You will have your main policy through your Insurance company and then the additional with the state.  

A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential such as condos and PUD properties, and HOAs collect these fees to assist with maintaining and improving properties in the association.