# Mortgage Rate Calculator

Our mortgage calculator helps you get an estimate of the monthly costs of your home. Calculates your monthly payments, including principal, interest, taxes, insurances, PMI, and HOA fees. The home is affordable if it's less than 28% of your income before taxes. If it's more, you should speak to a financial advisor before taking out a mortgage or home equity loan.

### Home Price

The total amount you expect to pay for the property.

### Down Payment

The amount you pay in cash upfront.

### Loan Term

How long it'll take to repay your mortgage loan.

### Interest Rate (Annual)

The percent of the borrowed amount you'll pay each year.

### Property Tax Rate (Annual)

The tax on the market value of your home.

### Home Insurance & Other Fees (Annual)

Homeowners insurance, HOA, PMI, etc.

$2410 monthly payment

## Definitions

- Mortgage
- A mortgage is a type of loan used for purchasing real estate. Mortgages use the real estate property as collateral. This means if you don't pay back the mortgage, the bank gets to keep your property.
- Principal
- The principal on a loan is the amount paid or received upfront. The difference between a home's price and the down payment is the principal
- Down Payment
- A down payment is a lump-sum payment paid upfront when you purchase the property. Typically, banks require a down payment that's at least 20% of the value of the home. This helps protect the bank from borrowers defaulting on their mortgages if the property's value goes down.
- Interest Rate
- The interest rate of a loan is the percentage of the loan that you have to pay in order to take out the loan. For mortgages, the interest compounds, meaning it could rapidly go up if you don't pay it down.
- Property Tax
- Governments charge a tax based on the value of your home. In the US, the property tax rate is about 1-2% of your property's value, depending on state.