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Use Zillow’s home loan calculator to quickly estimate your total mortgage payment including principal and interest, plus estimates for PMI, property taxes, home insurance and HOA fees. Enter the price of a home and down payment amount to calculate your estimated mortgage payment with an itemized breakdown and schedule. The costs of buying and owning a home can add up quickly, so it’s important to prepare.
Calculate mortgage rates
An online mortgage calculator can estimate this for you based on the price of the home, your down payment, and other details.Your credit can also affect your interest rate and monthly payments. If your credit score isn't as high as it could be, talk to your lender about how to bring it up fast, or learn how to improve your credit score. Conventional loans are backed by private lenders, like a bank, rather than the federal government and often have strict requirements around credit score and debt-to-income ratios.
Inspection and appraisal fees
You can find local tax information online; that can help you determine whether a town or neighborhood will be in your price range. Typically, your mortgage payment amount won't change over time (unless you have an adjustable-rate mortgage or you opt to make a change, like refinancing). However, the mix of how much of the payment goes toward principal versus interest will change over the life of the loan.
HOA, co-op or condo fees
Let’s say these netted out at 3 percent of the loan principal — so you’ll have paid $11,700 in closing costs. Your monthly mortgage payments will be $2,300, so you’ll likely need $4,600 in your bank account as reserves to secure your loan. Private mortgage insurance, or PMI, will likely be required if you put down less than 20% on a home.
Zillow's mortgage calculator gives you the opportunity to customize your mortgage details while making assumptions for fields you may not know quite yet. These autofill elements make the home loan calculator easy to use and can be updated at any point. $900 to $2,500 for most local moves; higher for longer distance, more stuff or additional services.
How much is a down payment on a house?
Mortgage payments include the principal, or the amount you borrowed to buy the home, as well as interest. Minimum of 3% for some conventional loans; 20% to avoid private mortgage insurance. Like your down payment, your closing costs are due when you close on the loan and take legal ownership of the property. Despite the benefits, sometimes it's just not possible to save up a larger down payment, and it makes sense to take advantage of special loans or other programs. Weigh your options with your lender based on your finances, your future plans, and the home you want to buy. Property taxes are generally due once or twice a year, but property tax laws and policies vary by state and county.
HOAs might also charge occasional special assessment fees for urgent repairs. Your estimated annual property tax is based on the home purchase price. The total is divided by 12 months and applied to each monthly mortgage payment.
Hiring a pro can cost between $913 and $2,531 according to HomeAdvisor, and expect to pay more for a long-distance move. Matt Hester and Ross Hester, father and son co-founders of The Hester Group with Harry Norman Realtors in Atlanta, Georgia, encourage all their clients to prepare for the funds needed to purchase. “If you do not consider all the costs, your monthly expense budget can be flipped on its head,” Matt Hester says.
Closing costs
These costs vary according to location, but the general rule of thumb is the larger the property, the more utilities will cost. You may want to create an emergency fund that's specifically for home-related expenses — think the fridge unexpectedly dying or a plumbing debacle. Having some money set aside for unexpected household expenditures will help keep you from tapping into your last-resort emergency savings or taking on credit card debt. The Federal Reserve Bank of St. Louis, using Consumer Price Index data from the U.S. Bureau of Labor Statistics, reports that the average monthly cost for electricity, heating and cooling is $311.69 for urban consumers in September 2022.
Jumbo loans allow you to purchase more expensive properties but often require 20% down, which can cost more than $100,000 at closing. No matter where you live, you’ll need to plan for general home maintenance, upkeep and repairs. Wear-and-tear happens, so it’s important to have extra funds on hand. Many experts recommend budgeting 1 percent of your home’s value for home maintenance each year, as well as maintaining an emergency fund to address urgent, non-budgeted concerns as they crop up. When working through your budget, don’t forget that, whether you do it yourself or hire professionals, you will incur moving costs.
Instead, PITI is typically due on the first day of the second month after closing. Depending on when you close, your first payment could be due a little over a month after completing the purchase, or up to two months later. We’ve included it here as an upfront cost because it is an expense you will have to cover close on the heels of a significant outlay. A mortgage loan term is the maximum length of time you have to repay the loan. Longer terms usually have higher rates but lower monthly payments.
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If you know the specific amount of taxes, add as an annual total. When you buy a home, you’ll pay a portion of your property taxes and homeowners insurance at closing. But you'll also have to pay them on an ongoing basis for as long as you own your home. Property taxes can vary widely depending on the value of your home, location, and tax changes each year. Your lender should give you the option to set up a special account, known as an "escrow" account, to make future payments on taxes and insurance so you don't have to worry about tracking these bills. If you’re buying a house in a planned development with a homeowners association, or you’re buying a condo or co-op, you’ll probably have a monthly HOA fee on top of your mortgage payment.
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It is possible to pay down your loan faster than the set term by making additional monthly payments toward your principal loan balance. Most home loans require at least 3% of the price of the home as a down payment. Although it's a myth that a 20% down payment is required to obtain a loan, keep in mind that the higher your down payment, the lower your monthly payment. A 20% down payment also allows you to avoid paying private mortgage insurance on your loan. You can use Zillow's down payment assistance page and questionnaire tool to surface assistance funds and programs you may qualify for. Bankrate.com is an independent, advertising-supported publisher and comparison service.
Conforming loans have maximum loan amounts that are set by the government and conform to other rules set by Fannie Mae or Freddie Mac, the companies that provide backing for conforming loans. A non-conforming loan is less standardized with eligibility and pricing varying widely by lender. Non-conforming loans are not limited to the size limit of conforming loans, like a jumbo loan, or the guidelines like government-backed loans, although lenders will have their own criteria. Lender fees are negotiable, and some lenders don't charge a fee at all. When you get pre-approved, make sure to ask about these fees (also known as "origination fees" or "processing fees") and shop around so you can compare costs. Don’t forget that you’ll also need to pay for basic utilities, like water, sewer, gas and electricity.
Remember, your monthly house payment includes more than just repaying the amount you borrowed to purchase the home. The "principal" is the amount you borrowed and have to pay back (the loan itself), and the interest is the amount the lender charges for lending you the money. These fees aren't usually part of your closing costs, but if you have an inspection and appraisal done, you'll be responsible for paying them before you close. An inspection helps identify major problems with the home, while an appraisal determines the home’s value. Most buyers have these done, and they can cost $300–$400 or more.
An emergency fund can help cover costly repairs, especially the surprise or urgent ones. Your emergency fund should be separate from your down payment and kept in a place where you can access it quickly, like a savings account. Promptly covering repairs can help prevent long-term property damage. For example, if a pipe bursts, you’ll want to have cash available to call in a plumber ASAP. You may also need to budget for homeowners association (HOA) fees.
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