Loan Details
Want to lower your rate or get help with closing costs? See the Advanced Options tab for discount points, lender credits, seller contributions, and bi-weekly payment savings.
Monthly Payment
Principal and interest split shown for month 1. The total Principal + Interest payment stays constant, but principal grows and interest shrinks each month as the loan amortizes.
Closing Snapshot
Closing Cost Line Items
Defaults are estimates based on your loan. Toggle items or enter your own amounts.
Closing Cost Summary
Cash to Close
Bring funds to closing in the form of a cashier's check or wire transfer, as permitted by your settlement provider. Your final cash-to-close amount will be confirmed on your Closing Disclosure. Contact your title company or closing attorney in advance to verify their preferred payment method, wiring instructions, and any deadlines for submitting funds before closing.
If your refinance does not cover all your closing costs, bring the difference as a cashier's check or wire transfer. Confirm the exact amount and how to send it with the title company or closing attorney handling your closing. If you have money to take home, let them know whether you want a check or a wire to the bank account of your choice.
Discount / Lender Credit
Enter 1 or -1 (whole numbers only) to calculate a new rate and closing cost/credit.
Buy points to lower your rate, sell points to take a lender credit toward closing costs.
Think of it like this: every +1 point you buy drops your rate by 0.125% (but you pay 1% of the loan upfront). Every -1 point (lender credit) raises your rate by 0.125% — and the lender gives you back 1% of the loan to help cover closing costs. So if your loan is $300,000 and you buy 1 point, you pay $3,000 now to save a little each month. Sell 1 point instead, and you get $3,000 toward closing but pay a bit more every month.
For reference only. Actual rates, discount points, lender credits, and closing costs may vary by lender.
Seller Contributions
Ask the seller to cover part of your closing costs. The maximum allowed depends on your loan type.
Closing Cost Contribution Limits by Loan Type
Monthly vs. Bi-Weekly Payments
A bi-weekly payment is half your monthly amount paid every two weeks. Because there are 26 two-week periods per year, you end up making the equivalent of 13 monthly payments instead of 12 — the extra goes straight to principal.
Loan paid off about — sooner with bi-weekly payments.
For reference only. Estimates assume the lender applies each bi-weekly payment to principal as received (true accelerated bi-weekly). Not all lenders offer this — some hold half-payments and apply once a month, in which case savings won't apply. Some lenders charge enrollment or service fees, and a few add prepayment penalties. Confirm program terms, fees, and how partial payments are applied with your loan servicer before enrolling. This is an estimate only, not a recommendation or a loan offer.
Your Updated Numbers
Here's how your monthly payment and cash to close look after applying the options above.
New Monthly Payment
Cash to Close Needed
Your final cash-to-close amount will be confirmed on your Closing Disclosure. Estimate only, not a loan offer.
Your Target Home Price
Have a specific home price in mind? Enter it below to see how each loan program stacks up against your max budget.
Household Income
Enter your gross (pre-tax) income. Only count income you can prove on paper. For bonuses, self-employment, or rental income, lenders usually want 2 years of history. Ask your loan officer or mortgage originator how many borrowers can be on the loan.
Other income examples: documented rental income, child support received, alimony received, pension, social security, regular bonuses.
Monthly Debts & Liabilities
Enter the minimum required monthly payment for each debt. These count toward your back-end DTI ratio. Do not include utilities, groceries, gas, or subscriptions.
If you enter a payment here, this calculator treats your next purchase as a second home. We bump the down payment to 10% minimum and the rate by +0.625%, which are the typical second-home terms. Leave it at $0 to keep first-time / primary-residence terms.
(Affirm, Klarna, Afterpay): $/mo
For student loans on income-driven repayment with a $0 payment, lenders may still use 0.5%–1% of the balance as the qualifying payment.
Debt-to-Income (DTI) Limits
Your back-end DTI is your total monthly debt (including the new mortgage PITI) divided by gross monthly income. Each loan program has its own limit; raising it allows a bigger purchase but increases risk.
• Conventional: 45% standard, up to 50% with strong credit & reserves
• FHA: 43% standard, up to 57% with compensating factors
• VA: 41% guideline (uses residual-income test instead)
• USDA: 41% standard, up to 44% with waivers
Housing Expense Assumptions
Property tax can be entered as a percent of price (national average is about 1.1%/yr) or as a yearly dollar amount if you already know it. Pick your state to load its average rate.
Loan Parameters
Set the rate and term you expect. Rates vary by loan program in practice; this calculator applies the same rate to all four for an apples-to-apples comparison.
This figure comes straight from your Closing Costs tab. Adjust the line items there and this updates automatically.
Typical buyer closing costs run roughly 2 to 4% of the purchase price ($8,000 to $14,000 on a $350,000 home). The number does not scale dollar-for-dollar with the price, since many fees are flat. Your lender's Loan Estimate has the exact figure for your loan.
Curious about adjustable interest rates? Read our article on Adjustable vs. Fixed Mortgage Rates to see how each option could change what you can afford.
Your Income & Debt Snapshot
Max PITI Allowance = (Gross Monthly Income × Max DTI%) − Total Monthly Debts. This is the largest housing payment a lender is likely to approve at your selected DTI.
What You Can Afford — by Loan Type
For each program, we find the largest home price where the resulting PITI stays within your allowance and your cash covers the required minimum down payment and reserves.
Renting Scenario
We compare against renting a similar place and investing the difference. Adjust below.
Market Assumptions
Out of pocket cost, not part of your loan. Think paint, blinds, a fridge or washer, locks rekeyed, basic furniture, movers, or small fixes the inspection turned up.
Mortgage Details
From the Mortgage tab. Change inputs there to update these values.
Cash Needed to Buy
This is what's tied up upfront — the alternative is to invest it instead.
Buy New vs. Buy Resale
If you're choosing between a newly-built home and an existing one, here's the quick trade-off.
Industry rule of thumb — new construction typically commands a 10–20% per-sq-ft premium over comparable resale.
- Builder warranties (1-yr workmanship, 10-yr structural)
- Modern energy-efficiency & lower utilities
- Customize finishes, layout, upgrades
- Low maintenance for 5–10 years
- Up to current building codes
- 10–20% premium per sq ft
- Smaller lots, less mature landscaping
- Often far from established amenities
- Construction delays possible
- Builder upgrades blow budgets fast
- Higher HOA dues in new developments
- 10–20% cheaper per sq ft
- Established neighborhoods & mature trees
- Larger lots typically
- Move in immediately
- Negotiation flexibility (price, repairs)
- Character & architectural charm
- May need updates ($5K–$30K+)
- Aging HVAC, roof, plumbing, electrical
- Less energy-efficient
- Potential lead/asbestos in older homes
- More inspection items to negotiate
- Less customization upfront
For reference only. Premiums and trade-offs vary widely by market, builder, and home age. Get a thorough inspection and compare cost-per-sq-ft of recent comps before deciding.
After 10 Years — Buy vs. Rent
All amounts are cumulative over the comparison horizon.
| Metric | Buy | Rent |
|---|
Opportunity Cost — What If You Invested Instead?
If you didn't buy and instead invested your cash-to-close in a diversified portfolio:
What This Means For You
For reference only. This is an estimate based on the assumptions you entered. Real-world results vary with rates, taxes, repairs, market conditions, lifestyle changes, and tax benefits we don't model. Talk to a financial advisor and a real estate professional before making a decision.
Renovation & Repair Costs
• Fannie Mae HomeStyle® Renovation
• Freddie Mac CHOICERenovation®
• VA Renovation (veterans) · USDA Renovation (rural areas)
Pick the repairs you expect, then adjust each estimate below.
Click a repair to turn it on, then type in what you think it will cost. The total at the bottom updates as you go, so you can see your renovation budget grow in real time.
Upfront Cost Summary
Renovation costs are paid upfront in addition to closing costs, not financed into your monthly payment.
To populate this ROI with mortgage figures (Principal & Interest, Property Taxes, Home Insurance, HOA, and PMI/MIP), go to the Mortgage tab and set Transaction to Investment.
Why? FHA, VA, and Conventional Purchase or Refinance loans are designed for owner-occupied primary residences. FHA and VA require borrower occupancy, and Conv Purchase/Refi use primary-residence pricing that doesn't reflect investor terms.
For investment properties, use Conventional Investment or DSCR loans — priced for non-owner-occupied properties, allow up to 10 financed properties, and (DSCR) qualify on the property's rental income rather than your personal income.
Right now this ROI shows rent and operating-expense figures only. Mortgage-side data is excluded from Monthly Expenses, NOI, and Cash-on-Cash ROI until you switch to Investment.
Rental Income
Operating Expenses
Toggle and adjust each monthly expense item.
Monthly P&L
Return on Investment
What is a HELOC? A Home Equity Line of Credit is a revolving credit line secured by the equity in your home. Unlike a fixed home equity loan, a HELOC works like a credit card: you have a maximum credit limit (your "line") and can borrow, repay, and re-borrow as needed. Most HELOCs have two phases — a draw period (typically 10 years) where you can pull funds and usually only pay interest, then a repayment period (typically 10–20 years) where the line closes and you pay principal + interest until the balance is gone. Rates are almost always variable, tied to the Prime rate plus a margin, so your payment can rise or fall as Prime changes.
Your Home & Equity
Most lenders cap combined LTV at 80–90%. Your maximum HELOC line is (Home Value × CLTV) − Mortgage Balance.
Loan Terms
Fees & Closing Costs
Some lenders also charge inactivity fees, early-termination fees (typically $300–$500 if closed within 3 years), and appraisal/title fees. Confirm all costs in your Truth-in-Lending disclosure.
Your Credit Line
Draw Period · Interest-Only
During the draw period, most HELOCs let you pay just the interest on the balance you've drawn. Your minimum monthly payment is small, but no principal is being paid down.
Repayment Period · Principal & Interest
Once the draw period ends, the line closes and your remaining balance amortizes over the repayment term. Payments can jump significantly — this is called "payment shock."
Lifetime Cost Summary
Assumes you draw the full amount upfront, hold the balance for the entire draw period at interest-only, then amortize to zero over the repayment period at the same rate.
Important Disclaimers
Variable rate risk: HELOC rates are almost always variable, tied to the Prime rate. If Prime rises, your interest-only payment rises immediately. A 2% rate increase on a $50,000 balance adds $83/mo to interest charges.
Payment shock: When the draw period ends, your minimum payment can double or triple as the loan begins amortizing principal. Budget for this transition.
Your home is collateral: A HELOC is secured by your home. If you can't make payments, the lender can foreclose — even if your first mortgage is current.
Lender can freeze or reduce the line: If your home value drops or your credit changes, the lender may cut your credit limit or freeze new draws, even mid-draw period.
Estimate only: Figures shown are estimates for planning purposes. Actual rates, fees, terms, and qualification depend on your lender, credit profile, property, and current market conditions. This is not a loan offer, pre-qualification, or financial advice. Consult a licensed mortgage professional before applying.
Complete Cost Breakdown
All figures are estimates for planning purposes only. Actual payments, rates, closing costs, taxes, insurance, and cash-to-close amounts may vary. Not a loan offer, approval, or financial advice.
Mortgage Terms
Discount & Lender-Credit Points
Each point equals 1% of your loan amount. Points let you trade cash for rate, in either direction.
For reference only. Actual rates, discount points, lender credits, and closing costs may vary by lender.
FHA vs. Conventional vs. VA
Three common home loan types. The right choice depends on your eligibility, credit, down payment, and how long you plan to stay.
Typically 5–20%+ preferred
With 580+ credit score
✓ No down payment required
✓ Removable once you hit 20% equity
⚠ Usually stays for life of loan
✓ No monthly PMI ever
Waived for disabled vets
500–579 needs 10% down
No official VA minimum
of purchase price toward buyer's closing costs
of purchase price toward buyer's closing costs
plus lender can pay all closing costs
• Conventional: ask how your credit score and down payment affect PMI and your long-term cost.
• FHA: ask whether it can help if your credit is rebuilding or your down payment is limited, and about seller credit limits.
This information is general and educational only. It is not financial, lending, tax, or legal advice. Confirm all options and details with a licensed professional.
Home Buying & Mortgage Tips
Guides, breakdowns, and strategies to help you make smarter real estate decisions. Information is provided for educational and reference purposes only. Loan programs, rates, and eligibility vary. Consult licensed professionals before making financial, lending, legal, or real estate decisions.