Your Mortgage Action Plan— Not Just a Calculator

Our mortgage calculator uses the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the total number of payments.

Private Mortgage Insurance (PMI) is automatically included when your down payment is less than 20% of the home value. According to the Homeowners Protection Act, PMI must be automatically cancelled when your loan-to-value ratio reaches 78%.

Use our mortgage calculator to estimate your monthly payments, compare different loan terms, and view a complete amortization schedule showing how much of each payment goes toward principal and interest over time.

The affordability calculator helps you determine how much house you can comfortably afford based on your income and expenses. It uses the standard 28/36 rule widely used by lenders in the United States.

The 28% rule states that your total monthly housing payment (PITI: Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross monthly income. The 36% rule extends this to include all monthly debt payments, which should not exceed 36% of your gross income.

These guidelines help ensure you maintain a healthy debt-to-income ratio and avoid overextending your budget. Lenders typically use these ratios to qualify borrowers for mortgage loans.

Refinancing involves replacing your existing mortgage with a new loan, typically to secure a lower interest rate, shorten the loan term, or access equity. Our refinance calculator helps you determine if refinancing makes sense for your situation.

Key factors to consider when refinancing include the new interest rate, closing costs, loan term, and how long you plan to stay in your home. The break-even point is when the monthly savings offset the upfront costs.

Refinancing can lower your monthly payment, reduce total interest paid over the life of the loan, or allow you to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for more stability.

Use our mortgage affordability calculator to estimate how much house you can afford. This tool helps you determine your budget based on your annual income, monthly debt payments, and down payment using standard lending guidelines.

Understanding mortgage affordability is crucial when house hunting. Our calculator uses the 28/36 rule to help you find the right home price that fits within your financial means without overextending your budget.

Key factors affecting affordability include credit score, debt-to-income ratio, interest rates, and loan term. Use this calculator as a starting point to understand your home buying options.

Should you rent or buy a home? Our rent vs buy calculator compares the long-term costs of renting versus homeownership, helping you make a data-driven decision about your housing situation.

Key considerations include monthly rent, home price, down payment, interest rates, property taxes, insurance, and expected home appreciation. The break-even point shows when buying becomes more cost-effective than renting.

Factors like flexibility needs, market conditions, and personal financial goals play a significant role in the rent versus buy decision. Use this calculator to understand the financial implications of each choice.

Is refinancing your mortgage worth it? Our refinance break-even calculator helps you determine how long it will take to recoup closing costs through monthly savings from a lower interest rate.

The break-even point is crucial when considering refinance options. If you plan to stay in your home beyond the break-even period, refinancing can save you thousands of dollars over the life of the loan.

Key factors include your current interest rate, new interest rate, loan balance, remaining term, and closing costs. Use this calculator to evaluate whether refinancing makes financial sense for you.

Debt-to-income (DTI) ratio compares your monthly debt payments to your gross monthly income. Lenders use two figures: the front-end ratio (housing payment alone) and the back-end ratio (all debts combined).

The common 28/36 rule says housing should stay under 28% of gross income and total debt under 36%. The CFPB's Qualified Mortgage standard caps most back-end DTI at 43%. FHA loans allow up to 31% front-end and 43% back-end.

The APR (Annual Percentage Rate) folds your upfront fees — origination, discount points, and other prepaid finance charges — into the cost of the loan and spreads them over the term. A loan with a low note rate but high fees can have a higher APR than a loan with a slightly higher rate and low fees.

Comparing APRs is the federal Truth-in-Lending (Regulation Z) method for judging the true cost of competing loans on equal footing.