MORTGAGE CALCULATOR

Quick Defintions:

What is a Down Payment?

Down payment is the funds you put down to purchase a home. Mortgage loans generally require as little as 3 percent down with certain options allowing for 0% down. Your down payment reduces the total amount of your mortgage loan, so the more money you put down, the lower your payments will be - or the more expensive a house you can buy.

What is an Interest Rate?
An interest rate is the cost of borrowing money, expressed as a percentage of the principal amount, or the return on an investment. Your actual rate will vary based on factors like credit score and down payment. Request a loan estimate for what your actual rate could be.

What is the Loan Term?

The loan term is the length of the mortgage loan. Mortgages options generally span from between 10 and 30 years.

What are Property Taxes?

Property taxes are fees paid to local governments (usually county or city) based on the value of real estate.

What is Homeowners Insurance (HOI)?

Homeowners insurance is a type of insurance that provides financial protection for your home and belongings. It covers damages to your house, your personal property within it, and liability for injuries or damages caused to others while on your property. Homeowners insurance is typically required by lenders, depending on the loan program.

What are HOA Fees?

A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association.

What is Mortgage Insurance?

Mortgage insurance protects lenders in case a borrower defaults on their mortgage payments. For example, mortgage insurance is required for FHA loans and typically required for conventional loans when the down payment is less than 20%. 

What is the difference between fixed and adjustable rates?
Fixed-rate loans offer the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate.