How to Use a Mortgage Calculator for Your Home Loan

Estimating your mortgage payment is simple! Just follow these steps based on the type of loan you’re considering:

Enter the Home Price: Example: $500,000

Choose Your Loan Type & Down Payment

• FHA Loan – Requires 3.5% down ($17,500 on a $500K home).

• VA Loan – No down payment required (Enter $0).

• Conventional Loan – At least 5% down ($25,000 on a $500K home) or more to avoid mortgage insurance.

Select Loan Term: 30 years (most common).

Enter Your Interest Rate: See Chart Above for National Rates * your rate could vary

Estimate Property Taxes & Insurance

• Property Taxes: Estimate 1.25% of the purchase price ($6,250 per year on a $500K home in CA).

• Homeowners Insurance: If not in a fire-risk area, estimate $1,000 - $1,600 per year.

Add Mortgage Insurance (If Required)

• FHA Loan: Includes a 0.55% annual mortgage insurance fee. Also includes a UPMI but the calculator does not include this. Typically this would add about $40/60 a month to your payment.

• VA Loan: No monthly mortgage insurance! However, a one-time VA funding fee may apply.

• Conventional Loan: First Time Homebuyers Requires 3% Down and All others 5%. If putting less than 20% down, add PMI (varies based on credit score and down payment).