MORTGAGE CALCULATOR
Mortgage Terms To Understand
Down Payment
Your down payment is the portion of the purchase price you pay upfront. While 20% down can eliminate private mortgage insurance on many conventional loans, many buyers purchase homes with significantly less. The amount you put down can affect your loan amount, monthly payment, mortgage insurance, and available loan options.
Loan Term
The loan term is the length of time you have to repay your mortgage. A 30-year mortgage generally offers a lower monthly principal and interest payment than a shorter-term loan, while shorter terms may allow you to pay less interest over the life of the loan.
Loan Type
Different loan programs have different down-payment requirements, qualification guidelines, mortgage insurance rules, and costs. Common options include conventional, FHA, VA, and adjustable-rate mortgages. A lender can help you compare programs based on your finances and the property you're considering.
Interest Rate
The interest rate has a significant impact on both your monthly payment and the total cost of borrowing. The rate shown in the calculator is an estimate. Your actual rate will depend on your loan program, credit profile, down payment, market conditions, and other factors.
PMI (Private Mortgage Insurance)
Some loans require mortgage insurance, particularly when purchasing with a smaller down payment. The cost and rules vary by loan program and may be included in your monthly payment. Your lender can provide the actual amount based on your specific financing.
Property Tax Rate
Property taxes can represent a significant portion of the monthly cost of owning a home in Chicagoland and can vary considerably from one property or community to another. Use the actual property taxes when available rather than relying solely on the calculator's estimate.
Home Insurance
Most lenders require homeowners insurance. Premiums vary based on the property, coverage, insurer, and other factors. The calculator provides an estimate, which you can adjust in the advanced options.
HOA Fees
Condos, townhomes, and some single-family homes may have monthly or annual association fees. These should be included when evaluating your total monthly housing expense. Be sure to consider what the fee covers as well as the amount.
*A HELPFUL STARTING POINT
This mortgage calculator is intended for general informational purposes and provides estimates only. Your actual payment, interest rate, taxes, insurance, mortgage insurance, closing costs, and other expenses will depend on your specific financing and the property you purchase.
Want a clearer picture of what your numbers could look like?
Ashley can connect you with experienced lending professionals who can review your options and provide a personalized estimate. Her husband, Justin Dudek, is also a mortgage lender and is available as a resource, but buyers are always free to choose the lender they feel is the best fit.