Calculator Assumptions & Loan Terms
The mortgage payment calculator uses borrower-input numbers to estimate a monthly principal-and-interest payment. The illustrations below describe the assumptions behind common example scenarios. They are provided for educational purposes only and do not represent an offer of credit, a rate quote, or a commitment to lend.
Example 1 — 30-year fixed conventional purchase
- Home price
- $400,000
- Down payment
- $80,000 (20%)
- Loan amount
- $320,000
- Loan term
- 30 years
- Interest rate (illustrative)
- 6.50%
- Estimated origination & third-party closing costs
- approx. 2%–5% of loan amount
- Property taxes / insurance / HOA
- Borrower-input estimates
- Mortgage insurance
- Not included; may apply when down payment is less than 20%
Example 2 — 15-year fixed conventional refinance
- Estimated value
- $500,000
- Loan amount
- $300,000
- Loan term
- 15 years
- Interest rate (illustrative)
- 5.875%
- Estimated origination & third-party closing costs
- approx. 2%–4% of loan amount
- Property taxes / insurance / HOA
- Borrower-input estimates
- Mortgage insurance
- Not included
Example 3 — 30-year fixed FHA purchase
- Home price
- $350,000
- Down payment
- $12,250 (3.5%)
- Base loan amount
- $337,750
- Loan term
- 30 years
- Interest rate (illustrative)
- 6.25%
- Estimated origination & third-party closing costs
- approx. 3%–6% of loan amount
- Upfront / monthly mortgage insurance
- Required on FHA loans; not shown in calculator output
Interest rates shown are illustrative and not based on any current rate sheet. Actual rates change daily, vary by lender and program, and depend on the borrower's credit, debt-to-income ratio, property type, occupancy, loan-to-value, points, and other factors. APR is not shown in the calculator. Calculator results exclude property taxes and insurance from the principal-and-interest figure shown; your total payment obligation will be higher.
This is not a commitment to lend. Get an official Loan Estimate before choosing a loan.