Mortgage Calculator

Buying a home is one of the biggest financial decisions you will make. This calculator helps you understand your monthly mortgage obligations by factoring in your down payment and interest rate.

Key Terms Explained

• Principal: The actual amount of money you borrowed to buy the house (Home Price minus Down Payment).
• Interest: The cost of borrowing that money, paid to the lender over time.
• LTV (Loan-to-Value): The percentage of the home's price that is financed by the loan. Most lenders prefer an LTV of 80% or lower (meaning a 20% down payment) to avoid private mortgage insurance (PMI).

How to Lower Your Payment

To reduce your monthly burden, you can increase your Down Payment (which lowers the loan amount) or secure a lower Interest Rate by improving your credit score.