Mortgage Calculator

Your total monthly mortgage payment is typically made up of four main components, collectively known as PITI:

• Principal: The portion of your payment that goes toward paying down the actual loan amount.
• Interest: The cost of borrowing the money, paid directly to your lender.
• Taxes: Property taxes assessed by your local government, usually held in an escrow account.
• Insurance: Homeowners insurance (and potentially Private Mortgage Insurance) to protect the property and the lender.

Our dynamic Health Badge analyzes your mortgage inputs in real-time:

• Down Payment < 5%: Flagged as High Risk because lenders typically charge higher rates and you lack an equity buffer.
• Down Payment < 20%: Triggers a reminder that Private Mortgage Insurance (PMI) will likely be required.
• Down Payment ≥ 20%: Praised as Excellent because you avoid PMI and secure the best market rates.

No, a 20% down payment is not strictly required. While putting down 20% is the "gold standard" because it allows you to avoid paying Private Mortgage Insurance (PMI), many people buy homes with much less.

First-time homebuyer programs often accept down payments as low as 3% to 3.5% (like FHA loans). Veterans and active military can even qualify for 0% down through VA loans. Keep in mind that a lower down payment means your monthly payments and total interest paid over the life of the loan will be higher.

The choice between a 15-year and a 30-year mortgage depends on your financial goals:

• 30-Year Mortgage: Offers lower monthly payments, giving you more flexibility in your monthly budget. However, you will pay significantly more in total interest over the life of the loan.
• 15-Year Mortgage: Requires higher monthly payments, but you will own your home free and clear in half the time and save tens of thousands of dollars in interest.

A Homeowners Association (HOA) fee is a monthly or annual charge levied by an organization that manages a residential community. These fees cover the maintenance of shared spaces and community insurance.

Are HOA fees included in my mortgage payment? Usually not. HOA dues are typically paid directly to the association and are not included in the payment you make to your mortgage servicer. Although not common, your mortgage servicer may be willing to include your HOA dues in the escrow portion of your monthly mortgage payment upon request.