Quick Defintions:

Down Payment

The typical rule of thumb is to pay 20 percent of the home's price as your down payment, although some mortgage loans require as little as 3.5 percent 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.

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.

 

Loan Term

Your loan program can affect your interest rate and monthly payments. Choose from 30-year fixed, 15-year fixed, and more in the calculator.

Property Tax Rate

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

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.

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.

Mortgage Insurance

Mortgage insurance protects lenders in case a borrower defaults on their mortgage payments. It's typically required for conventional loans when the down payment is less than 20%. This insurance, often called Private Mortgage Insurance (PMI), doesn't protect the homeowner; it safeguards the lender against potential losses from foreclosure

Loan Type
There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have 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.