Mortgage Calculator
FAQ’s
Question One
What type of mortgage is best for me?
Answer:
It depends on your financial goals and how long you plan to stay in the home.
Fixed-rate mortgage: Best if you plan to stay long-term and want predictable payments.
Adjustable-rate mortgage (ARM): Might offer lower initial rates but can rise later—better if you’re moving or refinancing in a few years.
FHA, VA, USDA loans: Government-backed options with lower down payments and credit requirements—ideal for first-time buyers or those with limited savings.
Ask your lender to explain the pros and cons of each based on your situation.
Answer:
It depends on your financial goals and how long you plan to stay in the home.
Fixed-rate mortgage: Best if you plan to stay long-term and want predictable payments.
Adjustable-rate mortgage (ARM): Might offer lower initial rates but can rise later—better if you’re moving or refinancing in a few years.
FHA, VA, USDA loans: Government-backed options with lower down payments and credit requirements—ideal for first-time buyers or those with limited savings.
Ask your lender to explain the pros and cons of each based on your situation.
Question Two
What will my monthly payment be—and what’s included in it?
Answer:
Your monthly payment typically includes:
Principal and interest (the loan itself)
Property taxes
Homeowners insurance
Mortgage insurance (if required)
Ensure you understand the full monthly cost, not just the base mortgage amount. Ask if these costs are escrowed (included in your payment and paid on your behalf).
Answer:
Your monthly payment typically includes:
Principal and interest (the loan itself)
Property taxes
Homeowners insurance
Mortgage insurance (if required)
Ensure you understand the full monthly cost, not just the base mortgage amount. Ask if these costs are escrowed (included in your payment and paid on your behalf).
Question Three
How much do I need for a down payment, and are there assistance programs?
Answer:
Down payments vary:
Conventional loan: Often 5–20%
FHA loan: As low as 3.5%
VA/USDA loans: May require 0% down
Ask about first-time buyer programs, grants, or down payment assistance that can lower your upfront cost. Also, ask if private mortgage insurance (PMI) will be required and when it can be removed.
Answer:
Down payments vary:
Conventional loan: Often 5–20%
FHA loan: As low as 3.5%
VA/USDA loans: May require 0% down
Ask about first-time buyer programs, grants, or down payment assistance that can lower your upfront cost. Also, ask if private mortgage insurance (PMI) will be required and when it can be removed.
Question Four
What are all the closing costs, and can they be negotiated?
Answer:
Expect 2–5% of the home price in closing costs, which may include:
Loan origination fees
Appraisal and inspection fees
Title insurance
Prepaid taxes and insurance
Attorney or escrow fees
Ask for a Loan Estimate (LE) early in the process—it breaks down all fees. In certain markets, the seller may negotiate or even cover some costs.
Answer:
Expect 2–5% of the home price in closing costs, which may include:
Loan origination fees
Appraisal and inspection fees
Title insurance
Prepaid taxes and insurance
Attorney or escrow fees
Ask for a Loan Estimate (LE) early in the process—it breaks down all fees. In certain markets, the seller may negotiate or even cover some costs.