What is included in the monthly payment?
Principal and interest on the loan, one-twelfth of the annual property tax and home insurance, any monthly HOA dues, and PMI when the down payment is under 20%. Lenders usually collect tax and insurance in escrow along with the loan payment.
How are property tax and insurance estimated?
They are not estimated for you. The starting values are example amounts for the sample price, entered as fixed dollars per year, and they stay put until you change them. Enter the county assessment and an insurance quote for the home you are considering to make the payment real.
What is PMI?
Private mortgage insurance is an added monthly cost lenders commonly charge on a conventional loan when the down payment is under 20% of the price. This calculator follows that convention: it adds PMI only while the down payment is under 20%, using the annual rate you enter as a share of the loan. Whether PMI applies, what it costs and when it ends are set by the lender and loan program, so use the rate a lender quotes you.
Is this a rate quote?
No. Nothing here is a loan offer, a current rate or a guarantee. The calculator runs standard fixed-rate amortization on the numbers you enter. For actual terms, get preapproved with a local lender, which Step 3 of the Relocation Roadmap walks through.