Enter your total yearly income before taxes. This includes your income and your co-borrower’s, such as:

- Base salary
- Commissions & bonuses
- Overtime & tips
- Rental or investment income
- Alimony or child support

This is the amount of money you’ll pay upfront toward the home.
-  A common rule is 20% of the home’s price.
-  Some loans allow as little as 3.5%.
- A larger down payment means: A smaller loan
- Lower monthly payments
- the ability to afford a more expensive home

Include all required monthly debt payments, such as:

- Credit card minimums
- Car loans
-Student loans
- Alimony/child support
- Rent or mortgage (not related to the new home)
- Other personal loans

Don’t include:

- Credit card balances paid off in full each month
- Existing rent/mortgage that will be replaced by the new home
- The new mortgage you’re applying for

This is how long your mortgage will last. Common options include:

- 30-year fixed (lower monthly payments)
- 15-year fixed (higher payments, less interest overall)

There are two main types of mortgage loans:

Fixed-rate:

- Interest stays the same for the whole loan
-Monthly payment stays predictable

Adjustable-rate (ARM):

- Starts with a lower rate
- Adjusts yearly after an initial fixed period
- Example: A 5/1 ARM has a fixed rate for 5 years, then adjusts each year
 

This is the interest on your loan. The calculator starts with today’s average rate. Your actual rate may differ based on credit, down payment, and loan type

Estimated taxes based on the home’s value. You can adjust this in Advanced Options.

Usually required by lenders to protect the home.
This cost is also adjustable in Advanced Options.

If the home is part of a homeowners association (HOA), you’ll need to pay a monthly fee.
This helps cover maintenance and shared amenities.
 

DTI compares your monthly debts to your gross monthly income.
Most lenders prefer a DTI below 36%
FHA loans may allow up to 41%
A DTI under 20% is excellent