Mortgage Help

Down Payment
Typically, a down payment ranges from 3% to 25% of the home's price, though some loans allow as little as 3% down. A larger down payment reduces your mortgage amount, lowering monthly payments or enabling you to purchase a more expensive home. Note that if your down payment is less than 20%, you may incur Private Mortgage Insurance (PMI) on your monthly payment.

Loan Term
The loan program you choose affects your interest rate and monthly payments. Options include 30-year fixed, 15-year fixed, and others.

Loan Type
Common mortgage loans include fixed-rate and adjustable-rate mortgages (ARMs). Fixed-rate loans offer consistent monthly payments and interest rates for the loan’s duration, providing stability and predictable total interest costs. ARMs start with lower rates for a set period (e.g., 5 years for a 5/1 ARM) before adjusting annually. A 2/1 rate buydown can further lower payments for the first two years if funded by the seller.

Interest Rate
This field displays the current average mortgage rate, but your actual rate may vary based on your credit score and down payment.

Property Tax Rate
The mortgage calculator estimates property taxes based on the home's value, which you can adjust in the advanced options.

Home Insurance

Homeowners insurance is typically required by lenders, depending on your loan program. You can modify this in the calculator's advanced options.

HOA Fees
If applicable, homeowners association (HOA) fees are monthly charges that support property maintenance and improvements in certain residential communities.