Javascript Mortgage Calculator by

How to calculate Mortgage Payments

Home Value:

Refers to amount you paid for the property or the projected amount for a future home purchase.

Down Payment:

A 3% down payment of the home's price is required for most home loans. However, certain loans, such as VA loans allow for a zero-down payment. A higher down payment such as 20% helps lower your monthly payment.

Loan Term:

The type of loan term can impact your interest rate and monthly payment. The calculator offers scenarios for different loan terms, including 30-year fixed, 15-year fixed, and 5-year ARM.

Interest Rate:

Mortgage interest represents the annual cost you pay to borrow money from your lender, expressed as a percentage rate. The calculator automatically populates the current average interest rate.

PMI (Private Mortgage Insurance):

PMI is calculated based on your credit score and the down payment amount. Lenders require this insurance when your loan amount exceeds 80% of the home purchase price. PMI is a monthly cost that increases your mortgage payment.

Property Taxes:

The estimated annual property tax is based on the purchase price of the home. The total amount is divided by 12 months and added to each monthly mortgage payment.

Home Insurance:

Homeowner's insurance is based on the home price. Typically, the average cost is less than 1% of the home price and provides liability coverage for the property owner and protection against hazards and losses.

HOA Dues (Homeowner's Association Dues):

In certain developments such as townhomes, or condominiums. Homeowners pay monthly HOA fees to cover amenities, maintenance, and some insurance. If there are no HOA costs, you can leave this field blank.