Question 1

How It Works

Accepted Answer

Enter the home price, down payment, loan term, and interest rate to see your estimated monthly payment. The calculator breaks down each payment into principal, interest, property taxes, and homeowner's insurance so you can understand the full cost of homeownership beyond just the loan itself.

Question 2

How much house can I afford based on my income?

Accepted Answer

A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs and no more than 36% on total debt payments. For a household earning $75,000/year, that means a maximum housing payment of about $1,750/month including taxes and insurance.

Question 3

How does a larger down payment affect my mortgage?

Accepted Answer

A larger down payment reduces your loan amount, monthly payment, and total interest paid. Putting down 20% or more also eliminates the need for private mortgage insurance (PMI), which typically costs 0.5-1% of the loan amount annually. Even increasing your down payment from 10% to 15% can save thousands over the life of the loan.

Question 4

Should I choose a 15-year or 30-year mortgage?

Accepted Answer

A 15-year mortgage has higher monthly payments but saves significantly on interest (often 50%+ less) and builds equity faster. A 30-year mortgage offers lower monthly payments and more budget flexibility. Choose 15-year if you can comfortably afford it; choose 30-year if you need breathing room or want to invest the difference.

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Matthew Collins