Mortgage Calculator

Breakdown your monthly mortgage costs ahead of time.

Budget for the Cost of Your Home Ahead of Time With Flexibility!

While Flexibility does not offer Mortgage Loans, below is an easy-to-use free online Mortgage Calculator if you’re in the market for a house and trying to determine how much your new mortgage will be.

Mortgage Calculator

The below Mortgage Calculator is a simple and easy-to-use tool that will help you estimate how much you can save on your mortgage by adjusting your down payment, loan term, and interest rate.

Calculator service provided under license from CALCONIC™. The information provided in the calculator is from CALCONIC, a third-party calculator builder. Flexibility has not independently verified the calculations. Consult with a financial advisor or check other sources before making financial decisions.

How to Use the Mortgage Calculator

Just enter a few numbers to quickly see an estimate of your monthly payment breakdown on your new mortgage.

LOAN AMOUNT: This is the amount you’ll need to borrow to purchase the home.

interest rate: This is the amount you’ll pay each year to borrow money for the loan, expressed as a percentage. Interest rates are constantly fluctuating, and will vary depending on several factors such as the type of loan, the borrower’s credit risk, the loan term, and more. As of December 2023, Bankrate reports that the current average interest rate for a 30-year fixed mortgage is 7.53%, but feel free to adjust this figure as needed.*

Loan TerM: This is the amount of time (in months) that you will have to repay the loan. Longer term mortgages can make your monthly payment amount smaller than shorter term loans by stretching out your payments over a longer period of time. The most common mortgage term is 30 years in the U.S., but feel free to play around with different terms.

InITIAL DEPOSIT: This is the portion of the sale price of the home that you will not be financing, also known as the down payment. Your initial deposit amount can affect the interest rate you get, as lenders typically offer lower rates for borrowers who make larger down payments.

It is typical to make an initial deposit of at least 3%. However, most lenders will require at least 20% for a conventional loan, allowing you to avoid paying Private Mortgage Insurance (PMI).

PROPERTY TAX: This tax is based on the value of the property. Rates will vary by location. If you’re not sure what to put here, look up what the property taxes are in the locality (state and county) you’re looking to buy your house in.

homeowner’s insurance: Homeowner’s insurance protects your property and personal belongings in case of unexpected events such as fires, theft, or natural disasters.

private mortgage insurance (pmi): PMI is an insurance policy that lenders often require from homebuyers who make a down payment of less than 20% of the home’s purchase price. It protects the lender in case the borrower defaults on the mortgage. PMI typically adds an extra cost to the borrower’s monthly mortgage payments.

hoa fees: Also known as Homeowners Association Fees, these are regular payments made by residents in a planned community. They cover the cost of maintaining shared amenities, common areas and other community services.

Benefits of Using a Mortgage Calculator

Mortgage calculators can offer numerous advantages for potential homebuyers and those considering refinancing. They provide quick estimates of monthly payments, can assist in budget planning, allow for easy comparison of different scenarios, and help understand affordability. A Mortgage Calculator also enables users to make informed decisions, save on interest, and prepare for pre-approval discussions. Mortgage calculators are educational, private, and convenient, offering insights into costs beyond just the loan amount. They also help prevent surprises and guide refinancing decisions.

Frequently Asked Questions

How to Budget for a Mortgage

To budget for a mortgage, assess your monthly income and expenses. Allocate a portion of your income for the mortgage payment while considering other essential expenses, savings, and debt payments. Use budgeting tools to track your finances and see if you can comfortably afford your mortgage, like the free online Budgeting Calculator.

Start by setting a savings goal for your down payment. Consider creating a dedicated savings account and contributing regularly. Cut unnecessary expenses, increase your income, and consider taking advantage of windfalls like tax refunds. Look into down payment assistance programs and explore options for reducing discretionary spending.

Buying a house will likely be the most expensive purchase you’ll make in your life, so it’s important to understand what costs are included. Homebuying costs include the down payment, closing costs (which can include appraisal fees, title insurance, attorney fees, etc.), property taxes, homeowners’ insurance, and possibly private mortgage insurance (PMI). Additionally, there are costs for home inspections and potential repairs.

To get pre-approved for a mortgage, contact lenders and provide financial information, including income, assets, and debt. They’ll evaluate your credit score, financial history, and other factors to determine the loan amount you’re eligible for. A pre-approval letter can help you understand your budget and make you a more serious buyer.

Existing debts can impact your mortgage eligibility by affecting your debt-to-income ratio. Lenders typically prefer a lower ratio, so having excessive debt payments relative to your income might limit your borrowing capacity. Paying down debts, improving your credit score, and managing your financial obligations might positively influence your mortgage eligibility.

To qualify for a mortgage loan, lenders assess your financial stability, creditworthiness, and ability to repay the loan. Factors considered include your credit score, income, employment history, debt-to-income ratio, down payment, and more. Meeting these criteria can demonstrate your ability to manage the mortgage payments.

The credit score needed for a mortgage loan varies, but a higher credit score might improve your chances of qualifying for better rates. Generally, a score of 620 or higher is often required for conventional loans, while FHA loans may accept lower scores around 580. However, higher scores can offer more favorable terms.

A fixed-rate mortgage is a type of home loan where the interest rate remains constant throughout the loan term. This can provide predictability and stability in monthly payments. So, it’s a popular choice for borrowers who want consistent payments over the life of the loan.

An adjustable-rate mortgage (ARM) is a type of mortgage where the interest rate is initially fixed for a certain period (often 5, 7, or 10 years) and then adjusts periodically based on a specified index. ARM loans may have lower initial rates but carry the risk of rate fluctuations after the initial period.

Mortgage points are fees paid upfront to lower the interest rate on the loan. Each point typically costs 1% of the loan amount and can lead to lower monthly payments. Whether to pay points depends on your financial situation, how long you plan to stay in the home, and whether the cost justifies the potential savings.

Private mortgage insurance (PMI) is a type of insurance required for homebuyers who make a down payment of less than 20% on a conventional mortgage. PMI protects the lender in case the borrower defaults. It adds to the monthly payment but enables borrowers to access a mortgage with a lower down payment.

A mortgage pre-approval is a lender’s assessment of your creditworthiness and capacity to borrow. It involves providing financial documents to the lender, who then determines the loan amount you’re eligible for. A pre-approval letter can strengthen your offer as a serious buyer and can also help you understand your budget.

FHA (Federal Housing Administration) and conventional loans are two common types of mortgage loans. FHA loans are government-backed and require lower down payments and lower credit scores, but they come with mortgage insurance premiums. Conventional loans typically require higher credit scores and larger down payments but offer more flexibility in terms.

A larger down payment reduces the loan amount, which can lead to lower monthly payments and potentially better interest rates. It also influences whether you need to pay private mortgage insurance (PMI). A larger down payment demonstrates financial stability and commitment to the purchase.

*Links to other third-party websites are not endorsed by, directly affiliated with, or sponsored by Flexibility and are only provided for the convenience of the reader, user, or browser.

Flexibility does not provide financial advice. The content of this page is provided for general informational purposes only. Flexibility does not make representations and warranties with respect to any information from this page, including Mortgage Calculator results. Consult with a financial advisor and evaluate the risks and merits before making financial decisions.  

High-interest loans can be expensive and should be used only for short-term financial needs, not long-term solutions. Customers with credit difficulties should seek credit counseling.