Question 1

What is a mortgage calculator?

Accepted Answer

A mortgage calculator is a financial tool that helps you estimate your monthly mortgage payments based on the home price, down payment, loan term, and interest rate. It helps you understand how much house you can afford.

Question 2

How much down payment do I need?

Accepted Answer

Down payment requirements vary by loan type and lender. Conventional loans typically require 3-20% down, while FHA loans may require as little as 3.5%. A 20% down payment helps you avoid private mortgage insurance (PMI).

Question 3

What is included in monthly mortgage payment?

Accepted Answer

Your monthly mortgage payment typically includes Principal, Interest, Taxes, and Insurance (PITI). Some payments may also include PMI (Private Mortgage Insurance) and HOA fees if applicable.

Question 4

How does loan term affect my payment?

Accepted Answer

Longer loan terms (like 30 years) result in lower monthly payments but higher total interest paid. Shorter terms (like 15 years) have higher monthly payments but significantly less total interest.

Question 5

What is a good debt-to-income ratio for a mortgage?

Accepted Answer

Most lenders prefer a debt-to-income ratio of 28% or less for housing expenses and 36% or less for total monthly debt payments. Some programs may allow higher ratios with compensating factors.

Mortgage Calculator