Figure Out the Right Mortgage for You
Our mortgage calculator can help you compare the costs and terms for different types of home loans based on your specific situation.
How It Works
Enter the estimated loan amount that you want to get for your new home.
Select your credit score range and enter your ZIP code so we can personalize your results.
Based on your information, we’ll show you different mortgage options, including the monthly payments and total interest charges.
Your results will show here once you complete the questions above.
Understanding Mortgage Calculators
Here’s how the information you put into our mortgage payment calculator influences your results — and what they mean for you.
Your loan amount, also known as the principal, represents how much you are borrowing and will need to pay back. It doesn’t include interest, which is what your lender charges for allowing you to borrow money. A larger mortgage is naturally going to result in higher monthly payments compared to a smaller mortgage with the same terms.
Credit score range
Your credit score affects the interest rates you qualify for. This, in turn, has a significant impact on the total amount of interest charged for your home loan, as well as the size of your monthly payment. Generally, a higher credit score means a lower interest rate and cheaper costs.
Your location influences the mortgage interest rates you’re offered. The Consumer Financial Protection Bureau provides a tool for homebuyers to explore interest rates depending on where they live.
Interest rate type
With a fixed-rate mortgage, your interest rate is locked in when you take out the loan and never changes. The upside is that the monthly payments on a fixed-rate mortgage remain predictable over the life of the loan. However, that also means you could get stuck with a higher rate if market interest rates go down — unless you refinance your mortgage.
With an adjustable-rate mortgage, also known as an ARM, your interest rate is fixed for an initial period. After that period ends, the rate can increase or decrease at regular intervals depending on market conditions. An ARM often comes with a competitively low rate during the initial period, but fluctuations in the market could result in higher monthly payments down the line.
Your monthly payment is the amount that you owe your mortgage lender each month. It includes payments toward principal, interest, property taxes, homeowners insurance, and mortgage insurance, if applicable.
APR and interest rate
The interest rate on your mortgage is the annual cost of taking out the loan, represented as a percentage rate. Your interest rate is largely determined by your credit score, location, home price, loan amount, down payment, loan term, and loan type.
Your annual percentage rate, also known as APR, is a broader way to measure this cost by also including any discount points, mortgage broker fees, and additional loan charges. Typically, your APR will be higher than your interest rate and give you a fuller picture of the cost of your mortgage.
Your total interest is the sum of all the interest that the lender will charge on your mortgage over your loan term. In general, higher interest rates and longer loan terms result in greater amounts of total interest paid.
Though they aren’t the only options, 30-year and 15-year loan terms are the most common for fixed-rate mortgages. With a 30-year term, you have more time to pay off the loan, which means lower monthly payments and higher total interest. Choosing a 15-year term means you pay off the loan sooner and get charged less total interest, but you have higher monthly payments.
If the results from our home loan calculator help you decide that you can afford the monthly payments, then it’s worth getting matched to a lender to find out what terms you could get.
Check out the answers to frequently asked questions about mortgages.
In a broad sense, our mortgage loan calculator could help you figure out how much you could potentially afford to borrow. Use the calculator to find out what your monthly payment might look like for different types of mortgages depending on the loan amount, credit score range, and ZIP code that you enter. The calculator also tells you which mortgages have a smaller monthly payment, lower interest rate, shorter repayment period, or cheaper overall cost.
Your monthly mortgage payment consists of:
Your debt-to-income ratio is a way for mortgage lenders to measure how much of your income goes toward paying off debt. This figure helps lenders determine whether you can afford to cover your monthly payments and repay the loan.
You can calculate your DTI ratio by adding up all your monthly debt payments and then dividing the total by your gross monthly income (the amount you earn before taxes and any deductions are taken out).
The 28/36 rule can help you figure out whether you’ll be able to afford the loan you want to get. According to the 28/36 rule, you shouldn’t spend more than 28% of your pretax income on your monthly mortgage payment, and more than 36% on your total debt payments.
With a conventional mortgage, which is the most common loan type, qualified first-time homebuyers can put down as little as 3% of the home’s purchase price. However, if you make a down payment of less than 20%, then lenders will typically require you to pay for private mortgage insurance — adding to your housing expenses.
In addition to saving up for the down payment, you need to be able to cover closing costs. These are fees paid to the lender, your real estate agent, and additional third parties involved in your home purchase. Closing costs generally run 2% to 5% of the purchase price.
Generally, you get a lower interest rate if you put more money down. That means you’ll pay less overall for the loan. And if you can make a 20% down payment, then you’ll also save money by avoiding mortgage insurance.
Keep in mind that lenders often consider down payments in increments of 5%. So, if you’re planning to make an 12% down payment, it could be worthwhile to figure out how you can reach the 15% threshold before buying a home.
With plenty of options between traditional banks and online mortgage lenders, it’s important to shop around before making a final decision. After requesting a loan estimate from each lender, use the forms to compare interest rates, projected payments, fees, and more. Doing so will help you decide which lender is right for your situation.
Also, remember that you’ll be entering a long-term financial relationship with your mortgage lender. Make sure you’re working with one that has a good reputation and can answer all your homebuying questions.
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