NewHomesMate's mortgage calculator offers customizable mortgage details and fills in any fields you might not yet know automatically. This autofill functionality simplifies the use of the calculator and allows for updates at any time.

Your monthly payment covers more than just the principal (the loan itself) and interest. It often includes homeowner's insurance, taxes, and possibly private mortgage insurance (PMI) or homeowner's association (HOA) dues. If you use an escrow account, your lender manages these extra costs, paying insurance and taxes on your behalf, as part of your total mortgage payment.

Home Price

The home price is the amount of money for which a house is sold or can be purchased. It represents the value that both the buyer and seller agree upon in the real estate market. Factors influencing this price include the home's location, size, condition, and the prevailing demand and supply in the market.

Down Payment

This is the amount you pay upfront toward your home purchase. A 20% down payment is ideal to lower your monthly payment and avoid private mortgage insurance. Federal Housing Administration (FHA) loans only require a minimum of 3.5%. If you have served in the military, you may be eligible for a down payment of 0% with a VA loan. Similarly, USDA loans provide 0% down payments and low interest rates for rural property purchases. Example: If you purchase a home priced at $200,000 and decide to put down 20%, your initial payment would be $40,000.

Loan Program

A mortgage loan programs outline the rules and terms for a mortgage, including interest rates, repayment period, and eligibility criteria for borrowers. They can vary widely, catering to different buyers and financial situations. Common loan programs include conventional fixed-rate loans, FHA loans, VA loans, and USDA loans.

Interest Rate

The amount that a lender charges a borrower for taking out a loan. The amount that a lender charges a borrower for taking out a loan. The interest rate is typically expressed as an annual percentage of the loan amount. Example: If you take out a loan with a 5% interest rate, you'll pay an additional 5% of the loan amount each year as interest.

Property Taxes

Owning a home means paying yearly property taxes based on the home's assessed value or purchase price, which can affect your affordability. Tax rates differ by location. Our calculator sets a default property tax rate, but you can adjust it in the advanced options. Example: If your property is assessed at $500,000 and the property tax rate in your area is 1.5%, you will pay $7,500 in property taxes annually.

Homeowner’s Insurance

Homeowner's insurance protects against damage to your home and belongings, and covers liability for injuries on your property. It's often required by lenders to get a home loan. Our calculator sets a default homeowner’s inshurance rate, but you can adjust it in the advanced options.

Homeowner's Association (HOA) fees

Residents of most communities are required to pay an HOA fee to their homeowner’s association. You can edit this number in the mortgage calculator advanced options. This fee is used for maintaining and improving shared spaces like pools, parks, landscaping, and community buildings, and for enforcing community rules and standards. It can also cover utilities or services like trash removal and snow plowing for the community.

Private mortgage insurance (PMI)

Many lenders commonly require private mortgage insurance if a borrower contributes less than a 20% down payment on a home purchase. PMI protects the lender against potential losses if the borrower fails to repay the mortgage. In our mortgage calculator, you have the option to include or exclude PMI through the advanced settings.