Tune the loan on the left, keep the payment story visible on the right, and use quick-pick sliders to compare realistic scenarios faster.
Move in $25k steps or jump to a common price point.
Current cash in
$80,000
Use the mode toggle to work in dollars or percent. Hitting 20% usually removes PMI.
Try nearby rate scenarios to see the payment difference instantly.
Simple view focuses on the loan itself.
Monthly payment currently includes principal and interest only. Switch to advanced costs to add property tax, insurance, HOA, and PMI.
Loan amount
$320,000
Down payment
$80,000
Rate
6.50%
Down
20.0%
Interest
$408,142
Total principal + interest
$728,142
PMI status
No PMI needed at this down payment
Total Interest
$408,142
Interest paid over the full life of the loan.
Total Cost of Loan
$728,142
Principal plus interest across 30 years.
With a 30-year fixed loan at 6.50%, you borrow $320,000 and pay about $408,142 in interest over time.
Understanding these terms makes it easier to compare scenarios with confidence.
The total monthly payment that includes both the principal repayment and the interest charged on the loan. Calculated using the formula: M = P[r(1 + r)^n] / [(1 + r)^n – 1], where M is the total monthly mortgage payment, P is the loan amount, r is the monthly interest rate, and n is the number of payments.
Taxes assessed by the local government based on the property's value. Typically calculated as a percentage of the property's assessed value and paid annually or semi-annually. Monthly property tax can be estimated by dividing the annual tax amount by 12.
Insurance that protects the homeowner from financial loss due to damage to the home or personal property. The cost can vary based on coverage and location, typically calculated annually and divided by 12 for monthly payments.
This is the ratio of the mortgage loan amount to the appraised value of the property. A lower LTV generally means a lower risk for the lender.
This ratio compares an individual’s monthly debt payments to their gross monthly income. It helps lenders assess the borrower’s ability to manage monthly payments and repay debts.
A mortgage with a fixed interest rate for the entire loan term. It provides consistent monthly payments, making budgeting easier for property owners.
A mortgage with an interest rate that may change periodically, usually based on an index, which could affect the monthly payments.
This is the process of paying off a loan over time through regular payments, with a portion going toward interest and the rest reducing the principal balance.
Insurance required by lenders when the borrower has a down payment of less than 20% of the property’s value. It protects the lender in case of default.
The amount of money borrowed to purchase the property. This is the base on which interest is calculated and repaid over time.
The cost of borrowing the principal, expressed as a percentage. It determines the amount of interest paid over the life of the loan.
An account held by a third party where funds are set aside for specific purposes, such as property taxes and insurance, ensuring these are paid on time.
A fee that some lenders charge if a borrower pays off the mortgage early, compensating the lender for the loss of interest.
The APR represents the total cost of borrowing on a yearly basis, including interest and additional fees or costs associated with the loan. It allows borrowers to compare the cost of different loans more easily.
The upfront cash payment a borrower makes when purchasing a property. It is usually expressed as a percentage of the property’s value. A higher down payment typically reduces the loan amount and may eliminate the need for Private Mortgage Insurance (PMI).
The length of time over which the mortgage must be repaid. Common loan terms are 15, 20, or 30 years. A longer term usually means lower monthly payments but more interest paid over the life of the loan.
Fees and expenses, other than the property price, that are incurred by the buyer and seller during the completion of a real estate transaction. These may include lender fees, appraisal fees, title insurance, and more.
The process of replacing an existing mortgage with a new loan, often to get a lower interest rate, change the loan term, or switch from an adjustable-rate to a fixed-rate mortgage.
The difference between the current market value of the property and the outstanding mortgage balance. As the loan is repaid and property value increases, the equity grows.
A form of prepaid interest that borrowers can purchase to lower the interest rate on their mortgage. One point typically equals 1% of the loan amount.
A type of mortgage that offers lower monthly payments initially because the full balance is not amortized over the term of the loan. At the end of the loan term, a large payment, or 'balloon payment,' is due.
A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are typically used for luxury or high-cost homes and may come with stricter qualification requirements.
A document that provides a detailed breakdown of the expected costs associated with the mortgage, including the loan amount, interest rate, closing costs, and other fees. It helps the borrower understand the full cost of the loan.
A measure used primarily for investment properties. It compares the net operating income generated by the property to the mortgage payments, helping lenders assess the risk of default.
A legal process where the lender takes ownership of the property if the borrower fails to make the required mortgage payments, ultimately selling the property to recoup the outstanding loan balance.
Insurance that protects both the buyer and the lender from potential legal claims or disputes over ownership of the property.
A tool that allows borrowers to estimate their monthly mortgage payments based on variables like loan amount, interest rate, term, and down payment. It’s helpful in planning and budgeting for home purchases.
