Home Loan Calculator
Calculate home loan payments with our free home loan calculator. This home loan calculator shows monthly payments, PMI, closing costs, and affordability analysis. Use our home loan calculator to determine how much house you can afford and compare different down payment scenarios.
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Home Details
Loan Terms
Additional Costs
Typical range: 2-5%
Affordability Analysis
Monthly Payment Breakdown
Cash Needed to Close
Affordability Analysis
28/36 Rule: Housing costs should not exceed 28% of gross income. Total debt should not exceed 36%.
Loan Summary
What is a Home Loan Calculator?
A home loan calculator is a financial tool that helps you estimate your monthly mortgage payment and determine how much house you can afford. This home loan calculator includes principal, interest, property taxes, insurance, HOA fees, and PMI in the calculation.
Use our home loan calculator to compare different scenarios, evaluate down payment options, and understand the true cost of homeownership. The home loan calculator shows you not just monthly payments, but also affordability analysis based on your income.
What is PMI?
PMI (Private Mortgage Insurance) is required when you put down less than 20% on a home loan. PMI protects the lender if you default on the loan. PMI typically costs 0.5% to 1% of the loan amount annually.
Removing PMI: Once you reach 20% equity in your home (either through payments or appreciation), you can request PMI removal. Some loans automatically cancel PMI at 22% equity.
Understanding the 28/36 Rule
The 28/36 rule is a guideline used by lenders to determine how much house you can afford:
- •28% Rule: Your housing costs (PITI) should not exceed 28% of your gross monthly income
- •36% Rule: Your total debt (housing + other debts) should not exceed 36% of your gross monthly income
What Are Closing Costs?
Closing costs are fees and expenses you pay when finalizing a home loan. These typically range from 2% to 5% of the home price.
Benefits of a Larger Down Payment
Lower Monthly Payment
A larger down payment means a smaller loan amount, resulting in lower monthly payments and less interest paid over time.
No PMI
Putting down 20% or more eliminates the need for PMI, saving you hundreds of dollars per month.
Better Interest Rate
Lenders often offer better interest rates to borrowers with larger down payments, as they represent lower risk.
Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.
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