Posted on 11/10/2015

Determining Home Affordability: How to Use Our Mortgage Calculators

3 minute read

First-time and repeat homebuyers often share a common question when it comes to purchasing a home: how much can I afford?


In an effort to make the beginning steps of home buying simpler, we provide mortgage calculators to homebuyers to make their purchase decision easier, as well as a refinance calculator for current homeowners to weigh the benefits of refinancing their loan.

General Loan Calculator

This calculator will help estimate the price range you should be shopping in or give you an idea of a monthly mortgage payment for a certain home price. This calculator is helpful for people who know what they are comfortable spending on a monthly payment or for those who would like to know what a monthly payment would be for a specific home price.

Keep in mind that this calculator does not include insurance and taxes, which are typically included in your total monthly mortgage payment.

Loan Amortization Calculator

A loan amortization calculator is helpful for homebuyers and homeowners who want to know:

  • Amount of monthly payment going toward principal versus interest
  • How much interest they will pay over the life of the loan
  • How much they will owe on their mortgage at a certain point

For example, here is an amortization chart for a $150,000 loan with a 4.0% interest rate:

Loan amortization calculators can also be helpful for homeowners who are interested in cutting interest costs and years from the life of their loan by paying extra into their mortgage.

Refinance Decision Calculator

This calculator gives homeowners an in-depth look at how a refinance may or may not benefit their financial situation. To complete this calculator, you will need to know information about your current home loan, such as interest rate, home value, loan balance, etc. You will also need to gather some information for the loan program you would like to refinance into, such as interest, loan period, interest rate, closing costs, etc.

Purchase Decision Calculator

Trying to compare pricing and payments on multiple properties? Not sure which loan program is right for you? This calculator allows you to calculate and compare your complete monthly mortgage payment, including principal, interest, taxes and insurance, for multiple properties. The purchase decision calculator also allows you to compare payments for one property using different mortgage rates, down payments, and loan programs.

Our advanced calculators (refinance and purchase decision calculators) are best used with the assistance of one of our experienced mortgage bankers.

Looking for more information on buying a home? Our Mortgage 101 Handbook is the ultimate guide for First Time Home Buyers.

*Our mortgage calculators can not determine loan eligibility and are meant to serve as a tool for homebuyers thinking of purchasing or homeowners considering refinancing. Your best option to determine mortgage affordability and/or loan eligibility is to meet with a mortgage banker for a pre-approval.

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