The Purchase Payment Calculator estimates a total monthly mortgage payment on a new home purchase, including principal and interest, property taxes, homeowners insurance, HOA dues, and mortgage insurance. Toggle between Conventional (private mortgage insurance, or PMI, when the down payment is below 20%) and FHA (upfront and annual mortgage insurance premium, or MIP) to compare loan types. Adjust the home price, down payment, interest rate and loan term to see how the payment changes.

Frequently Asked Questions

How much down payment do I need to buy a house?
Down payment requirements vary by loan program: conventional loans can go as low as 3% for qualified first-time buyers, FHA loans require 3.5% down, VA loans can offer 0% down for eligible veterans, and USDA loans can also offer 0% down in eligible rural areas. Putting down less than 20% on a conventional loan typically means paying private mortgage insurance (PMI) until you reach 20% equity.

What is included in my monthly mortgage payment?
A typical monthly mortgage payment includes principal (paying down the loan balance), interest, property taxes, homeowners insurance, and — if applicable — HOA dues and mortgage insurance (PMI, MIP, or a VA funding fee depending on loan type). Lenders often refer to this combined figure as “PITI” (principal, interest, taxes, insurance).

What credit score do I need to qualify for a mortgage?
Minimum credit score requirements vary by loan program and lender: conventional loans typically require a 620 minimum, FHA loans can go as low as 500 with a larger down payment (or 580 with 3.5% down), and VA loans don’t have a government-set minimum, though most lenders look for 580–620. A higher credit score generally qualifies you for a better interest rate.

What's the difference between pre-qualification and pre-approval?
Pre-qualification is a quick, informal estimate of what you might be able to borrow based on self-reported information. Pre-approval is a more thorough process where a lender verifies your income, assets and credit and issues a conditional commitment letter — this is what most sellers expect to see with an offer.

How does PMI work and when can I remove it?
Private mortgage insurance (PMI) is typically required on conventional loans when the down payment is less than 20% of the home’s value. PMI can usually be removed once the loan balance reaches 80% of the home’s original value (by request) and is automatically canceled at 78% under federal law, assuming the borrower is current on payments.

What's the difference between conventional PMI and FHA MIP?
Conventional PMI applies only when the down payment is below 20% and can be removed once the loan reaches roughly 78–80% of the home’s original value. FHA loans instead charge a mortgage insurance premium (MIP): a one-time upfront MIP of 1.75% of the base loan amount (typically financed into the loan) plus an ongoing annual MIP. Unlike PMI, FHA MIP usually doesn’t cancel automatically — it runs for 11 years if you put down 10% or more, or for the life of the loan if you put down less than 10%.

The Home Affordability Calculator estimates the home price a borrower may be able to afford under several loan programs — Conventional, FHA, VA, USDA and Jumbo — based on gross income, monthly debts, target down payment and current interest rates. It applies standard debt-to-income (DTI) guidelines for each program to solve for a maximum purchase price.

Frequently Asked Questions

How much house can I afford based on my income?
A common guideline is that a total monthly housing payment (principal, interest, taxes, insurance) shouldn’t exceed roughly 28% of gross monthly income, and total debt payments (including housing) shouldn’t exceed roughly 36–45% depending on the loan program. This calculator applies program-specific debt-to-income guidelines to estimate a maximum purchase price.

What is debt-to-income (DTI) ratio and why does it matter?
DTI ratio compares total monthly debt payments to gross monthly income. Lenders use it to gauge how much additional mortgage payment a borrower can reasonably take on — conventional loans generally cap DTI around 45–50%, while FHA and VA loans can sometimes allow higher ratios with compensating factors.

Which loan program lets me afford the most house?
It depends on down payment, credit profile and existing debt — VA and USDA loans (with 0% down and no monthly mortgage insurance for VA) often maximize affordability for eligible borrowers, while FHA’s more flexible DTI and credit guidelines can help others qualify for more compared to conventional financing.

Does this calculator account for property taxes and insurance?
Yes — the affordability estimate factors in property taxes, homeowners insurance, HOA dues if entered, and program-specific mortgage insurance (PMI, FHA MIP, VA funding fee, or USDA guarantee fee) to solve for a realistic maximum purchase price under a target monthly payment.

What counts as “debt” in a debt-to-income calculation?
Lenders typically count recurring monthly obligations like car payments, student loans, credit card minimum payments, personal loans, and child support or alimony. They generally don’t count expenses like utilities, groceries, or subscriptions.

The Rent vs Buy Calculator compares the long-run financial outcome of renting (and investing the difference) against buying a home, factoring in home price appreciation, rent growth, closing costs, maintenance, and the opportunity cost of a down payment. It’s meant to illustrate the trade-offs over time, not predict what will happen in any specific market.

Frequently Asked Questions

Is it better to rent or buy?
It depends heavily on how long a buyer plans to stay, local home price and rent trends, the down payment amount, and what would otherwise be done with the money spent on a down payment and closing costs. Buying tends to build equity and can be cheaper over longer time horizons, while renting offers more flexibility and lower upfront costs.

How long do I need to stay in a home for buying to make sense?
A common guideline is at least 3–5 years, mostly because closing costs and the sales commission when selling (typically 5–6% of the sale price) take time to be offset by equity growth and any tax benefits.

What costs are included when comparing buying to renting?
On the buying side, this calculator factors in the down payment, closing costs, mortgage payment, property taxes, insurance, HOA dues, maintenance, and estimated appreciation, netting out equity and estimated selling costs. On the renting side, it factors in rent growth and what the down payment and monthly savings could earn if invested instead.

Does buying always build more wealth than renting?
Not necessarily — it depends on how home prices and rents move relative to each other, how long the buyer stays, and the investment return on the money that would have gone toward buying. In some high-cost, slow-appreciation markets, renting and investing the difference can come out ahead, especially over shorter timeframes.

What is the “opportunity cost” of a down payment?
It’s the return given up by putting money into a down payment instead of investing it elsewhere, such as the stock market. This calculator uses an assumed investment return to show how that trade-off affects the rent-vs-buy comparison.

The VA Purchase Calculator estimates a monthly payment on a VA-backed home loan, including the VA funding fee, which varies based on down payment, whether it’s a first use of the VA loan benefit, and whether the borrower is exempt due to a service-connected disability. VA loans allow eligible veterans, active-duty service members, and some surviving spouses to buy with $0 down and no monthly mortgage insurance.

Frequently Asked Questions

Who is eligible for a VA loan?
VA loans are generally available to veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and certain surviving spouses. Eligibility is confirmed through a Certificate of Eligibility (COE), which a lender can typically help obtain.

What is the VA funding fee?
The VA funding fee is a one-time fee paid to the VA that helps keep the loan program running without requiring monthly mortgage insurance. The fee is a percentage of the loan amount and varies based on down payment and whether it’s a first or subsequent use of the VA benefit — veterans with a service-connected disability rating are typically exempt.

Do I have to make a down payment with a VA loan?
No — VA loans allow eligible borrowers to finance up to 100% of the purchase price with $0 down, though making a down payment can reduce the funding fee and monthly payment.

Is there mortgage insurance on a VA loan?
No — VA loans don’t require monthly private mortgage insurance (PMI) or an upfront mortgage insurance premium like FHA loans, which is one of the primary financial advantages of the VA loan program. The one-time VA funding fee still applies unless the borrower is exempt.

Can I use my VA loan benefit more than once?
Yes — VA loan benefits can generally be reused, including for multiple properties over a lifetime, as long as any prior VA loan is paid off or remaining entitlement covers the new loan. The funding fee is typically higher on subsequent uses unless the borrower is exempt.

The ARM Calculator models how a monthly payment could change over time on a 5/1, 7/1, or 10/1 adjustable-rate mortgage, based on the loan’s cap structure and one of four illustrative rate-path scenarios. It’s designed to show the range of outcomes after the initial fixed-rate period ends, not to predict future rates.

Frequently Asked Questions

What does 5/1, 7/1 or 10/1 mean on an ARM?
The first number is how many years the interest rate is fixed before it can adjust; the second number is how often it adjusts after that (in years). A 7/1 ARM has a rate fixed for 7 years, then can adjust once per year for the remainder of the term.

What are ARM rate caps?
Rate caps limit how much the interest rate can change. The initial cap limits the first adjustment after the fixed period ends, the periodic cap limits each adjustment after that, and the lifetime cap limits the total change over the life of the loan. A common structure is 2/1/5 (2% initial, 1% periodic, 5% lifetime).

Is an ARM a good idea right now?
ARMs can make sense for borrowers who plan to sell or refinance before the fixed period ends, or when the initial rate is meaningfully lower than a comparable fixed rate. Because the rate can rise after the fixed period, it’s worth modeling a range of scenarios — like this calculator does — rather than assuming the initial rate for the life of the loan.

Can I refinance out of an ARM before it adjusts?
Yes — many ARM borrowers refinance into a fixed-rate loan (or a new ARM) before their fixed period ends, especially if rates have dropped or they want payment certainty. There’s no prepayment penalty on most conventional ARMs, though it’s worth confirming with a loan officer.

How is the new payment calculated after an adjustment?
At each adjustment, the payment is recalculated to fully pay off (amortize) the remaining loan balance over the remaining term at the new interest rate — the same way a real ARM recasts the payment.

A temporary buydown is a financing structure where extra funds — typically from the seller, builder, or lender — are used to temporarily lower a monthly payment for the first one to three years of a loan, without changing the actual note rate. It’s commonly used to ease into a new mortgage payment or offset a higher-rate environment. This calculator models the 3-2-1, 2-1 and 1-0 structures.

Frequently Asked Questions

Who pays for a temporary buydown?
A temporary buydown is most commonly funded by the seller (as a concession to help close the sale) or the builder on new construction, though a lender or the buyer can also fund it in some cases. The funds are typically placed in an escrow account that pays the difference between the reduced and full payment each month.

What's the difference between a temporary buydown and a permanent rate buydown (discount points)?
A temporary buydown lowers the payment for a limited period (like 1–3 years) and then steps up to the full note-rate payment — the interest rate never actually changes. A permanent buydown (paying discount points) actually lowers the interest rate for the life of the loan.

What happens after the buydown period ends?
Once the buydown period ends, the payment steps up to the full payment based on the original note rate for the remainder of the loan term — the rate itself never changed, so it’s important to budget for that higher payment from day one.

Can I refinance during a temporary buydown period?
Yes — many borrowers use a temporary buydown as a bridge, planning to refinance if rates drop before the buydown period ends. If a refinance happens, any unused buydown funds are typically applied to the payoff or returned per the loan’s terms — ask a loan officer for specifics.

Is a 3-2-1 buydown better than a 2-1 or 1-0 buydown?
It depends on the cost to fund it and how much payment relief is needed. A 3-2-1 buydown offers the most short-term relief but generally costs more to fund than a 2-1 or 1-0; sellers or builders may only be willing to offer a smaller structure depending on their concession budget.

The Refinance Calculator estimates a new monthly payment when refinancing an existing mortgage into a new loan — whether lowering the rate, changing the term, or tapping equity with a cash-out refinance. Toggle between Conventional and FHA (including the FHA upfront and annual mortgage insurance premium, or MIP) to compare loan types. Enter the current balance and a new rate and term to compare against the existing payment.

Frequently Asked Questions

When does it make sense to refinance my mortgage?
Refinancing typically makes sense when you can lower your interest rate enough to offset closing costs within a reasonable timeframe (often called your “break-even point”), when you want to shorten your loan term to pay it off faster, or when you want to convert an adjustable-rate mortgage to a fixed rate or tap into your home’s equity.

What is a cash-out refinance?
A cash-out refinance replaces an existing mortgage with a new, larger loan and pays out the difference in cash, based on the home’s equity. It’s commonly used to consolidate debt, fund home improvements, or cover other major expenses, though it does increase the loan balance and monthly payment.

How much does it cost to refinance?
Refinance closing costs typically run 2–6% of the loan amount and can include origination fees, appraisal fees, title insurance, and recording fees. Some lenders offer “no-closing-cost” refinances where the costs are rolled into the loan balance or offset by a slightly higher rate.

Will refinancing reset my loan term?
Refinancing creates a new loan, so refinancing into a new 30-year term effectively restarts the amortization schedule. Many borrowers choose a shorter term (like 15 or 20 years) or a term that matches their remaining years on the original loan to avoid extending the overall payoff timeline.

How long does a refinance take to close?
A typical refinance takes about 30–45 days to close, depending on the lender, loan type, and how quickly documentation (income verification, appraisal, title work) can be completed.

Can I refinance an FHA loan, or refinance into one?
Yes — an existing FHA loan can often be refinanced through an FHA Streamline Refinance, which can qualify for reduced documentation and a lower upfront mortgage insurance premium (MIP) than a standard refinance. A conventional loan can also be refinanced into a new FHA loan, or an FHA loan into a conventional one, subject to each program’s credit, equity and mortgage-insurance requirements — a loan officer can help identify the best fit.

The VA Refinance Calculator compares two VA refinance options: the Interest Rate Reduction Refinance Loan (IRRRL, also called a VA Streamline), designed to quickly lower a rate on an existing VA loan with minimal documentation, and a VA Cash-Out Refinance, which lets a borrower refinance any loan type into a VA loan and access home equity as cash.

Frequently Asked Questions

What is a VA IRRRL (Streamline Refinance)?
An Interest Rate Reduction Refinance Loan (IRRRL) is a simplified refinance available only to borrowers who already have a VA loan. It’s designed to lower the interest rate or move from an ARM to a fixed rate, typically without a new appraisal or as much documentation as a standard refinance.

What is a VA Cash-Out Refinance?
A VA Cash-Out Refinance lets eligible veterans refinance an existing mortgage of any type (VA, conventional, FHA) into a new VA loan and take out cash based on home equity, up to a percentage of the home’s value set by VA guidelines.

Does an IRRRL require a home appraisal?
Typically no — one of the main advantages of an IRRRL is that it usually doesn’t require a new appraisal or a full credit underwriting package, which can make it faster and less costly than a standard refinance.

What is the VA funding fee on a refinance?
The funding fee on an IRRRL is a flat, low rate (0.5% under current VA guidelines), while a VA Cash-Out Refinance funding fee is higher and depends on whether it’s a first or subsequent use of the VA benefit — veterans with a service-connected disability rating are typically exempt from the fee.

Can I refinance a non-VA loan into a VA loan?
Yes, but only through a VA Cash-Out Refinance — an IRRRL is only available to borrowers who already have an existing VA loan they’re refinancing.

A HELOC and a home equity loan both let a homeowner borrow against the equity in their home, but they work differently: a HELOC is a revolving line of credit that can be drawn from as needed, while a home equity loan is a lump-sum loan with a fixed payment. This calculator estimates current equity, loan-to-value, and potential borrowing power under either option.

Frequently Asked Questions

What's the difference between a HELOC and a home equity loan?
A HELOC (home equity line of credit) is a revolving line of credit, similar to a credit card, that can be drawn from as needed during a draw period, with payments based on the amount borrowed. A home equity loan is a lump-sum loan with a fixed interest rate and fixed monthly payment, more like a second mortgage.

How much can I borrow with a HELOC?
Most lenders allow borrowing up to a combined loan-to-value (CLTV) of 80–90% of the home’s value, which includes the first mortgage and any other home-secured debt. The specific limit depends on credit profile, income, and the lender’s guidelines.

What can I use a HELOC or home equity loan for?
Common uses include home improvements, debt consolidation, education expenses, or major purchases. Because the home secures the loan, lenders often offer lower interest rates than unsecured credit cards or personal loans — but the home is at risk if the loan isn’t repaid.

Do I need to have my home appraised for a HELOC?
Usually yes — most lenders require some form of valuation (a full appraisal, drive-by appraisal, or automated valuation model) to confirm the home’s current value before approving a HELOC or home equity loan.

Is HELOC interest tax-deductible?
In some cases, interest on a HELOC or home equity loan may be tax-deductible if the funds are used to buy, build, or substantially improve the home that secures the loan — but tax rules are specific and change periodically, so this is not tax advice; consult a tax professional for guidance on a specific situation.

The DSCR (Debt-Service Coverage Ratio) Calculator estimates whether an investment property will qualify for financing based on its rental income relative to the proposed loan payment, rather than the borrower’s personal income. DSCR loans are popular with real estate investors because they don’t require W2s, tax returns or personal debt-to-income calculations.

Frequently Asked Questions

What is a DSCR loan?
A DSCR (Debt-Service Coverage Ratio) loan is a type of investment property financing that qualifies based on the property’s rental income relative to its mortgage payment, rather than the borrower’s personal income or employment history. It’s popular with self-employed investors and those building a rental portfolio.

What DSCR ratio do I need to qualify?
Most DSCR lenders look for a ratio of 1.0 or higher, meaning the property’s rental income covers 100% of the mortgage payment (principal, interest, taxes, insurance and any HOA dues). Many lenders offer their best rates and terms at a DSCR of 1.20–1.25 or higher, though some programs allow ratios below 1.0 with a rate adjustment.

How is DSCR calculated?
DSCR is calculated by dividing the property’s monthly market rent (or in-place lease income) by its total monthly housing payment (PITIA — principal, interest, taxes, insurance and association dues). A DSCR of 1.25 means the rent covers the payment with 25% to spare.

Do DSCR loans require tax returns or income verification?
No — that’s the main appeal of a DSCR loan. Instead of verifying personal income with tax returns and pay stubs, the lender qualifies the loan based on the subject property’s rental income, typically via an appraiser’s rent schedule or an existing lease.

Can I use a DSCR loan for a short-term rental (Airbnb)?
Many DSCR lenders do allow short-term rental income to qualify, often using projected income from a market analysis (like AirDNA) instead of a traditional long-term rent schedule, though guidelines vary by lender.

The Fix & Flip Loan Calculator estimates the financing costs and projected profit on a short-term rehab-and-resale project, including purchase price, rehab budget, after-repair value (ARV), loan term, interest rate, and closing/selling costs. Fix & flip loans are short-term, interest-only loans designed for investors who plan to renovate and sell (or refinance) within months, not years.

Frequently Asked Questions

What is a fix and flip loan?
A fix and flip loan is a short-term financing option (often called hard money) designed for investors who purchase a property, renovate it, and sell it within a relatively short window — typically 6–18 months. These loans are usually interest-only and can be based more on the property’s after-repair value (ARV) than the borrower’s income.

How much can I borrow for a fix and flip project?
Fix and flip lenders typically lend a percentage of the purchase price (often 80–90%) plus a percentage of the rehab budget (often 100%), commonly capped at a percentage of the after-repair value (ARV), such as 65–75%. Exact limits vary by lender and the borrower’s experience level.

What is ARV (after-repair value)?
ARV is the estimated market value of the property after renovations are complete. Lenders use ARV — usually established through an appraisal or comparable sales analysis — to determine the maximum loan amount, since it reflects the property’s value once the planned improvements are finished.

Are fix and flip loans interest-only?
Yes, most fix and flip loans are interest-only for the loan term, meaning the monthly payment covers just the interest on the loan while renovations are completed, with the full principal due when the property sells or the loan is refinanced.

Do I need real estate investing experience to get a fix and flip loan?
Not always, but many lenders offer better rates, terms and leverage to borrowers with a track record of completed flips. First-time investors can often still qualify, sometimes with a larger down payment or a lower loan-to-ARV ratio.