🏠 Mortgage Calculator
Calculate your monthly mortgage payments, total interest costs, and amortization schedule. Compare different loan terms, interest rates, and down payment options to make informed home buying decisions.
💰 Monthly Payment
$2,108
Principal & Interest
📊 Payment Breakdown
💰 Loan Summary
📈 Amortization Preview
🏦 Loan Type Comparison
| Loan Type |
Down Payment |
Credit Score |
| 🏛️ Conventional |
3-20% |
620+ |
| 🏠 FHA |
3.5% |
580+ |
| 🎖️ VA |
0% |
No minimum |
| 🌾 USDA |
0% |
640+ |
| 💎 Jumbo |
10-20% |
700+ |
🏠 Understanding Mortgages
A mortgage is a loan used to purchase real estate, where the property serves as collateral. Understanding mortgage terms, interest rates, and payment structures is crucial for making informed home buying decisions.
💰 Mortgage Payment Components
| Component |
Description |
Typical Range |
Notes |
| 🏠 Principal |
Loan amount borrowed |
Home price - down payment |
Reduces over time |
| 📊 Interest |
Cost of borrowing money |
3-8% annually |
Higher early in loan |
| 🛡️ Property Tax |
Annual tax on property value |
0.5-2.5% of home value |
Varies by location |
| 🏠 Insurance |
Homeowner's insurance |
$800-2,000/year |
Required by lender |
| 🔒 PMI |
Private mortgage insurance |
0.3-1.5% of loan amount |
If down payment < 20% |
🏦 Loan Types Explained
| Loan Type |
Best For |
Advantages |
Disadvantages |
| 🏛️ Conventional |
Good credit, stable income |
Flexible terms, no upfront fees |
Higher down payment, strict credit |
| 🏠 FHA |
First-time buyers, lower credit |
Low down payment, flexible credit |
Mortgage insurance required |
| 🎖️ VA |
Military veterans |
No down payment, no PMI |
Limited to eligible veterans |
| 🌾 USDA |
Rural area buyers |
No down payment, low rates |
Geographic restrictions |
| 💎 Jumbo |
High-value properties |
Large loan amounts |
Stricter requirements, higher rates |
📊 Interest Rate Factors
| Factor |
Impact |
How to Improve |
Typical Range |
| 💳 Credit Score |
Major impact on rate |
Pay bills on time, reduce debt |
580-850 |
| 💰 Down Payment |
Higher = lower rate |
Save more for down payment |
3-20%+ |
| 📅 Loan Term |
Shorter = lower rate |
Choose shorter term if affordable |
15-30 years |
| 🏠 Loan-to-Value |
Lower LTV = better rate |
Larger down payment |
80-97% |
| 💼 Debt-to-Income |
Lower DTI = better rate |
Increase income, reduce debt |
< 43% |
💡 Money-Saving Tips
- 🎯 Shop Around: Compare rates from multiple lenders
- 💰 Larger Down Payment: Avoid PMI and get better rates
- 📊 Improve Credit: Even small improvements can save thousands
- 📅 Consider Shorter Terms: 15-year loans have lower rates
- 🔒 Lock Your Rate: Protect against rate increases during closing
- 💸 Extra Payments: Pay extra toward principal to save interest
- 🏠 Refinance When Beneficial: Lower rates or remove PMI
📋 Home Buying Checklist
- 💳 Check Credit Score: Get free reports and improve if needed
- 💰 Save for Down Payment: Aim for 20% to avoid PMI
- 📊 Calculate Affordability: Use 28/36 rule for debt ratios
- 🏦 Get Pre-approved: Know your budget before shopping
- 🏠 Factor All Costs: Include taxes, insurance, maintenance
- 🔍 Compare Loan Options: Different programs have different benefits
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