Mortgage Loan Calculator

• Principal - amount you initially borrow from a lender to buy your home.
• Interest - percentage of the principal you’ll pay over the life of your loan as a fee for borrowing the money.
• Property tax - based on a percentage of your property value, and this can change from year to year depending on your local real estate market conditions – you can estimate your property tax rate by comparing your home with the property tax rate of similar homes in your area.
• Homeowners insurance -provides a safety net in case of damage to your property due to natural disaster or accidents, and the cost of homeowners insurance will vary depending on a range of factors, including the age and value of your home, location, your credit history, and more.

There are several reasons why your mortgage payment may change over time. Your property taxes going up or down can cause a change in your mortgage payment, as can reassessment of your property value. You can also choose to refinance your mortgage loan, which can significantly change your mortgage payment. For example, if you shorten your 30-year loan to a 15-year loan, you will pay more on your mortgage, but you can pay off your loan faster and potentially save on interest costs.

Determining how much mortgage you can afford involves considering several factors, including your income, debts, down payment and the interest rate on your loan.

A mortgage down payment is the initial amount of money you pay upfront when purchasing a home. This payment is a percentage of the home’s purchase price and is combined with a home loan to cover the total cost.

Choosing between different loan terms, such as a 15-year versus a 30-year mortgage, can significantly impact your monthly payments and the overall cost of your loan. Here’s how each option affects your mortgage:

15-Year Mortgage

• Monthly Payments: Higher, due to the shorter term.
• Interest Rate: Typically lower.
• Total Interest Paid: Less over the life of the loan.
• Equity Build-Up: Faster, as more of each payment goes towards the principal.

30-Year Mortgage

• Monthly Payments: Lower spread out over a longer period.
• Interest Rate: Generally higher.
• Total Interest Paid: More over the life of the loan.
• Flexibility: Greater, allowing for other financial goals or investments