THE FIELD GUIDE · MORTGAGE PLANNING
The number beyond principal & interest
Build a payment that reflects the home you will actually own.
Start with the loan
Principal and interest repay the mortgage. Your interest rate, balance and repayment term determine this amount. A longer term generally lowers the scheduled payment while increasing total interest when the other inputs stay the same.
Add the costs that stay with the property
Enter the annual property tax estimate from the relevant assessor or tax collector, a property-specific insurance quote, and HOA or condo dues. Divide annual expenses by twelve. Flood, wind, earthquake coverage, utilities, maintenance and special assessments may require separate allowances.
Treat mortgage insurance separately
PMI is an additional assumption, not an interest rate. Our calculator uses your entered annual percentage of the original loan balance throughout the modeled term; actual premiums, cancellation rights and timing depend on your loan. FHA mortgage insurance and VA funding fees need program-specific review.
Stress the budget
Use the rate sensitivity controls to test a higher rate. Also consider tax reassessment after purchase, insurance renewal changes, HOA increases and repairs. A mathematically affordable payment is not a lender approval.
This guide is educational. Confirm the figures and conditions for your actual loan.
Official consumer or market guidance ↗