How this calculator works
Your monthly payment is made of five parts: principal and interest on the loan, property tax, homeowners insurance, mortgage insurance when the loan requires it, and HOA dues if the home has them. Property tax and insurance can be a big part of the payment and vary a lot by state and county, so a home at the same price can cost very different amounts each month depending on where it is.
FHA and VA loans also add a one-time fee to the loan amount at closing: FHA's 1.75% upfront mortgage insurance premium, and the VA funding fee unless the veteran is exempt. This calculator adds those fees to the loan, so the payment you see is closer to what a lender would actually quote.
Payment calculator questions
What is included in a monthly mortgage payment?
Most payments include principal and interest, plus an escrow amount for property taxes and homeowners insurance. Mortgage insurance is added on conventional loans with less than 20% down and on FHA loans, and HOA dues are usually paid separately but still count toward what you can afford.
Why is my payment higher than other calculators show?
Many calculators leave out property tax, homeowners insurance, mortgage insurance or the FHA and VA upfront fees, or use low national averages for them. Property tax and insurance vary a lot by state and county, and in some areas taxes alone are more than 2% of the home's value each year, so enter your own numbers or ask Sarah for an exact quote.
How much is mortgage insurance on FHA and conventional loans?
FHA charges an upfront premium of 1.75% of the base loan, usually added to the loan, plus an annual premium that is commonly 0.50% to 0.55% for a 30-year loan of standard size. Conventional mortgage insurance depends mainly on your credit score and down payment, and it can generally be removed once you reach enough equity.
What is the VA funding fee?
It is a one-time fee on most VA loans that can be added to the loan amount. For a purchase it is 2.15% with less than 5% down on first use, 3.3% with less than 5% down on later use, 1.5% with 5% to under 10% down, and 1.25% with 10% or more down. Veterans who receive VA disability compensation, and some surviving spouses, are exempt.
Is the rate in this calculator a rate I can get?
No. The starting rate is an example taken from Freddie Mac's weekly national average, not an offer. Your actual rate depends on your credit, down payment, loan type, property and the day you lock, so ask Sarah for a current quote based on your situation.
Sarah Baraz is based in San Antonio and licensed in Texas, Florida and California. Educational estimate only. This is not a loan offer, rate quote, pre-approval or commitment to lend. The example rate is Freddie Mac's Primary Mortgage Market Survey national average for the week shown and is not available to every borrower. Property tax, insurance and mortgage insurance figures are planning assumptions. Programs, guidelines, rates and eligibility can change and are subject to underwriting.