Mortgage Terms
A simple guide to the key terms used in the calculator, so buyers can better understand what shapes a monthly payment.
Down Payment
The typical rule of thumb is to put 20 percent down, although some loan programs require much less. A larger down payment reduces the total loan amount and can lower your monthly payment.
Loan Term
Your loan term affects both your interest rate and monthly payment. Common options include 30-year fixed, 15-year fixed, and other programs shown in the calculator.
Loan Type
The most common mortgage types are fixed-rate and adjustable-rate loans. Fixed-rate loans stay the same over time, while ARMs may start lower and then adjust later.
Interest Rate
This field is usually pre-filled with a current market estimate. Your actual rate may vary based on factors like credit score, down payment, and overall loan profile.
Property Tax Rate
The calculator estimates property taxes based on the home’s value. You can adjust this in the advanced settings to reflect a more accurate local tax amount.
Home Insurance
Homeowners insurance is often required by lenders. This estimated amount can also be adjusted in the calculator’s advanced options to better match the property you’re considering.
HOA Fees
HOA fees are monthly charges tied to certain neighborhoods or communities. These fees help maintain shared spaces, amenities, and other community features.