Annual Income

This represents the combined yearly income for you and any co-borrower before taxes. Buyers may include sources like salary, commissions, bonuses, overtime, tips, rental income, or other qualifying income depending on lender guidelines. Because every loan program evaluates income differently, a licensed lender can help confirm what may count toward qualification.

Down Payment

Your down payment is the portion you contribute upfront toward the purchase. While many people reference 20%, some loan programs may allow lower down payment options depending on qualifications. A higher down payment can reduce the amount financed and may influence monthly payments but the right strategy depends on your overall financial goals.

Other Monthly Debts

This section helps estimate affordability by factoring in ongoing obligations. Include recurring minimum payments such as car loans, student loans, personal loans, alimony or child support, and required credit card minimums. Debts that will be paid off or replaced by the new mortgage typically aren’t included. Your lender will ultimately calculate this based on verified financials.

Do NOT include: credit card balances you pay off in full each month, existing house payments (rent or mortgage) that will become obsolete as a result of the new mortgage you're seeking, or the new mortgage you're seeking.

Loan Term

The loan term is the length of time you have to repay the mortgage commonly 30-year or 15-year options. The term you choose can affect both monthly payment amounts and long-term interest costs, so it’s helpful to explore different scenarios in the calculator.

Loan Type

There are several types of mortgage loans, but the most commonly used are fixed-rate and adjustable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Adjustable-rate mortgages (ARMs) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, and hold that rate for a set number of years, before changing interest rates from year to year. For example, if you have a 5/1 ARM, you will have the same interest rate for the first 5 years, and then your interest rate will change from year to year. The main benefit of an adjustable-rate loan is starting off with a lower interest rate.

Interest Rate

Calculators often use an estimated average rate as a starting point, but your actual interest rate may vary. Credit profile, loan type, down payment, market trends, and lender requirements all play a role in determining what you qualify for.

Property Tax

Estimated property taxes are included to help provide a more realistic picture of potential monthly housing costs. Actual taxes depend on the property, local tax rates, exemptions, and appraisal values, so these numbers should be viewed as estimates.

Home Insurance

Homeowners insurance is typically required by lenders and helps protect the property. Premiums can vary based on coverage, property characteristics, and insurance provider, and may be adjusted within the calculator for planning purposes.

HOA Fees

Some properties include homeowners association dues that contribute to shared amenities or community maintenance. HOA costs vary by neighborhood and should always be reviewed alongside association documents.

Debt-to-Income (DTI)

DTI compares your total minimum monthly debts to your gross monthly income and is one of the ways lenders evaluate affordability. Different loan programs allow different ranges, and approvals depend on multiple factors not just one percentage. Think of this as a general guideline rather than a final approval number.