Monthly Mortgage Payment Calculator

Mortgage lenders like United take several factors into consideration, including your credit score, debt-to-income ratio, employment history, and assets. You can get a free copy of your credit report every 12 months from each of the three nationwide credit bureaus—Equifax, Experian, and TransUnion—by visiting www.annualcreditreport.com.

It will depend on a number of factors, including the interest rate, how much you have for a down payment, your current income, and your current debt.

The interest rate on a fixed-rate mortgage stays the same throughout the life of the loan. With a fixed-rate mortgage, you don’t have to worry about your rate going up and causing a bigger monthly payment than you’ve planned on.  

The interest rate on a fixed-rate mortgage stays the same throughout the life of the loan. With a fixed-rate mortgage, you don’t have to worry about your rate going up and causing a bigger monthly payment than you’ve planned on.  

The interest rate on an adjustable-rate mortgage (ARM) can chane over time. Usually, the rate is lower than the market rate for the fixed-rate period of the loan typically seven to ten years, and then it’s adjusted on a set schedule based on the current market rate.

The schedule will be in your loan terms. Adjustments may be madeevery six months. Some ARMs come with a cap on how much interest you’ll be expected to pay so you have an idea of how high your payment may rise.

 

You can change, but you’ll need to refinance through a new loan, which will come with closing costs and appraisal fees. Work with your mortgage lender to fully understand the math of what you’ll be spending and what you’ll be saving.

Conventional loans are offered by banks and other private lenders with no guarantee from the government that they’ll be paid back. Government-backed loans are also offered by banks and other private lenders, but the government guarantees they’ll re-pay the loan if the borrower doesn’t.

There are three types of government-backed mortgages:

• FHA loans are guaranteed by the Federal Housing Administration to make homebuying more affordable, especially for first-time homebuyers. FHA loans have lower interest rates and lower credit score and downpayment requirements than conventional loans.
• VA loans are guaranteed by the Department of Veterans Affairs to help active-duty service members and veterans buy a home. VA loans have lower interest rates and credit score requirements than conventional loans. There’s no down-payment or private mortgage insurance (PMI) requirement.
• USDA loans are guaranteed by the US Department of Agriculture to stimulate development in rural areas. USDA loans have lower interest rates and credit score requirements than conventional loans and no down-payment requirement.

United Community offers our PATH loan to help more people buy homes, especially in underserved communities. (PATH stands for “Possibilities Achieved Through Homeownership.”)

PATH loans don’t have a down-payment requirement, meaning you can move forward with buying a home even if you haven’t saved up for a down-payment. PATH also doesn’t have a private mortgage insurance requirement, so more of the money you pay each month goes toward paying down the money you borrowed to buy the home.

It's a letter from a mortgage lender like United that provides an estimate of the amount you pre-qualify for based on financial information you have provided so far. You can use the letter to show real estate agents and home sellers that you’re a serious homebuyer. It’s not a guarantee that your loan will be approved, but it indicates you’re well on your way.

After you apply for a loan, your mortgage loan originator will ask if you want to lock in your interest rate. It’s a lender’s guarantee that your interest rate won’t change for a certain period of time, even if market rates go up. The lock is a holding period designed to last throughout the mortgage process and closing day.

Do your best to pay your bills on time and keep your credit card balances as low as you can. As you pay off credit cards, keep them open to show your good payment track record. If you’re in trouble with credit card debt, consider talking to a credit counselor.

Get seven more tips for improving your credit score.

Amortization, escrow, FICO score. Learning about the mortgage process can feel like learning a whole new language. We’ve put together this mortgage glossary to help with the translation. Bookmark it for quick reference and ask your mortgage lender as many questions as it takes to make homebuying decisions with confidence.

If homebuying is your goal, you can take several steps toward it at your own pace.

• Start saving for the downpayment, even if you can’t save much.
• Try to reduce your debt-to-income ratio (DTI).
• Keep an eye on property values where you want to buy. It’s possible they’ll go down over time and become more affordable.
• Wait for lower interest rates to reduce your monthly payment.
• Look into home affordability solutions like government-backed loans, including VA mortgage loans, PATH loans and downpayment assistance.

Your monthly mortgage payment determined by:

• Loan amount
• Interest rate
• Loan term
• Property taxes
• Homeowner’s insurance
• Private Mortgage Insurance (PMI), if your lender requires it

Generally, the lower your loan amount and interest rate, and the longer your loan term, the lower your monthly payment will be.

To learn more, check out this article: Your Monthly Mortgage Payment

Your downpayment goes directly to principle, along with a portion of your mortgage payments. Usually, in the early months and years of a mortgage, most of the monthly payment goes toward interest. In the later years, most of the monthly payment goes toward principle.

The answer is different for everyone, but the 28%/36% rule is a widely accepted guideline. It means that your mortgage payment shouldn’t be more than 28% of your gross monthly income (before taxes), and you shouldn’t have more than 36% of your gross monthly income going to other debts.

As an example, let’s say your gross monthly income is $3,000. That means your mortgage should be no more than $840. Your other debts should be no more than $1,080. Make sure you have enough monthly income left over to cover necessities and save for an emergency.