How accurate is the mortgage calculator?
Our mortgage calculator provides accurate estimates based on standard mortgage formulas. However, actual rates and terms may vary based on your credit score, lender policies, and market conditions. Always consult with a financial advisor for precise calculations.
What's included in the monthly payment?
The monthly payment includes principal, interest, property taxes, and home insurance. Private Mortgage Insurance (PMI) is automatically calculated if your down payment is less than 20% of the home price.
How does a larger down payment affect my mortgage?
A larger down payment reduces your loan amount, which lowers your monthly payments and total interest paid. With 20% or more down, you can avoid Private Mortgage Insurance (PMI), saving you additional money each month.
What's the difference between fixed and adjustable rates?
Fixed-rate mortgages have the same interest rate for the entire loan term, providing predictable payments. Adjustable-rate mortgages (ARMs) have rates that change periodically, which can result in lower initial rates but uncertain future payments.
How can I pay off my mortgage faster?
You can pay off your mortgage faster by making extra payments, switching to bi-weekly payments, or refinancing to a shorter-term loan. Even one extra payment per year can significantly reduce your total interest and loan term.
What are closing costs and how much are they?
Closing costs typically range from 2% to 5% of the home price and include lender fees, appraisal fees, title insurance, and other charges. These are separate from your down payment and should be factored into your home buying budget.