Understanding Mortgages

Down Payment: The standard down payment is 20% of the home price, though some mortgages require as low as 3.5%. A larger down payment reduces the mortgage amount and lowers monthly payments, or enables the purchase of a pricier home.

Loan Term: The loan term affects the interest rate and monthly payments. Choose from options such as 30-year fixed or 15-year fixed in the calculator.

Loan Type: The most common mortgage loans are fixed-rate and adjustable-rate. Fixed-rate loans offer stability with the same interest rate throughout the loan, while adjustable-rate loans (ARMs) have changing interest rates, starting with a lower rate for a set period, before adjusting annually.

Interest Rate: The calculator has the average mortgage rate pre-filled, but your rate may vary based on factors like credit score and down payment.

Property Tax: The mortgage calculator estimates property taxes based on the home's value and can be edited in the advanced options.

Home Insurance: Home insurance is usually required by lenders, depending on the loan program, and can be edited in the calculator's advanced options.

HOA Fees: HOA fees are monthly payments required by some homeowners to maintain and improve properties in the association.