Question 1

How is my monthly mortgage payment calculated?

Accepted Answer

Your monthly payment includes principal and interest (based on loan amount, interest rate, and term), property taxes, homeowner's insurance, and PMI if your down payment is less than 20%. Use our calculator above to estimate your total monthly payment.

Question 2

How much house can I afford?

Accepted Answer

A common guideline is to keep your total monthly housing payment (principal, interest, taxes, insurance) below 28% of your gross monthly income. For a $100,000 annual salary, that's roughly $2,333/month toward housing.

Question 3

What is PMI and when do I have to pay it?

Accepted Answer

PMI (Private Mortgage Insurance) is required on conventional loans when your down payment is less than 20% of the home price. It typically costs 0.5–1% of the loan amount per year and can be removed once you reach 20% equity.

Question 4

Is a 15-year or 30-year mortgage better?

Accepted Answer

A 15-year mortgage has higher monthly payments but you pay significantly less interest over the life of the loan and build equity faster. A 30-year mortgage has lower monthly payments and more flexibility. The best choice depends on your cash flow and financial goals.

Question 5

How does my down payment affect my mortgage payment?

Accepted Answer

A larger down payment reduces your loan amount, lowers your monthly payment, and eliminates PMI if you put 20% or more down. It also typically results in a lower interest rate and means you pay less total interest over the life of the loan.

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