Home Mortgage Calculator

Calculate mortgage payments for Conventional, FHA, VA, and Jumbo loans. Compare loan types, view equity timeline, and analyze term options.

About the Home Mortgage Calculator

Choosing the right mortgage type is as important as choosing the right home. Conventional, FHA, VA, and Jumbo loans each have different down payment requirements, mortgage insurance rules, and qualification criteria that significantly impact your monthly payment and total cost.

A conventional loan requires as little as 3% down with PMI, while FHA loans charge upfront and annual mortgage insurance premiums that persist for the life of the loan. VA loans offer zero down payment to eligible veterans but include a funding fee. Jumbo loans cover amounts above the current conforming loan limit and typically require larger down payments and stronger credit.

This calculator compares all four loan types side by side. Enter your purchase details to see monthly PITI payments, cash needed at closing (down payment plus closing costs), an equity timeline showing how your ownership stake grows, and a term comparison from 10 to 30 years. Use the loan type reference table to understand which option fits your situation.

Why Use This Home Mortgage Calculator?

Different mortgage types have hidden costs — FHA's lifetime MIP, VA's funding fee, conventional PMI. This calculator surfaces the true cost of each option so you can compare apples to apples and choose the loan type that minimizes your total expense. That makes the loan-type decision much more concrete than comparing rates alone.

How to Use This Calculator

  1. Enter the home purchase price.
  2. Set down payment percentage.
  3. Choose your interest rate and loan term.
  4. Select the loan type: Conventional, FHA, VA, or Jumbo.
  5. Enter annual property tax and homeowner insurance.
  6. Set expected closing cost percentage (2-5% typical).
  7. Compare PITI, cash needed, and equity timeline.

Formula

P&I = L × r(1+r)^n / [(1+r)^n − 1]. FHA: Upfront MIP 1.75% + Annual MIP 0.85%/12. VA: Funding fee 2.15%. Conv PMI ~0.5%/yr if LTV > 80%. PITI = P&I + Tax/12 + Insurance/12 + MI.

Example Calculation

Result: P&I: $2,076/mo — PITI: $2,642/mo — Cash needed: $92,000 — No PMI

A $400K conventional scenario with 20% down ($80K) borrows $320K at 6.75%. Monthly principal and interest are about $2,076. Adding roughly $417 of monthly property tax and $150 of insurance brings PITI to about $2,642. With 20% down, the worksheet does not add PMI. Closing costs at 3% add $12K, so total cash needed is about $92K.

Tips & Best Practices

Compare Loan Programs On Cash Needed And Ongoing Cost

The best mortgage program is not always the one with the smallest down payment or the lowest headline rate. FHA, VA, Jumbo, and conventional loans distribute cost differently between cash at closing, ongoing mortgage insurance or funding fees, and qualification flexibility. Looking at all three together is more useful than comparing the monthly principal-and-interest payment alone.

Mortgage Insurance Changes The Long-Term Math

Conventional PMI, FHA annual MIP, and VA funding fees all change the total cost profile in different ways. Some charges disappear once equity improves, while others can persist much longer. That is why a loan that looks attractive on day one can become the more expensive option over time if the insurance structure is ignored.

Use The Comparison As A First-Pass Filter

This page is best used to narrow the field before you get formal loan estimates. Once you know which program families are worth pursuing, the actual lender disclosures should decide the final choice because they will reflect real pricing, reserves, and borrower-specific qualification details.

Sources & Methodology

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Methodology

This worksheet compares four mortgage structures by applying the user-entered purchase price, down payment, rate, term, annual property tax, annual insurance, and closing-cost percentage to a simplified loan model. It calculates principal and interest with standard amortization, adds taxes and insurance for PITI, uses the calculator's simplified FHA, VA, and PMI assumptions for mortgage-insurance or funding-fee treatment, and then builds an equity timeline from the resulting amortization schedule.

It is meant to be a first-pass comparison tool, not a lender underwriting system. Actual mortgage insurance, VA funding-fee exemptions, jumbo pricing, escrow requirements, and closing-cost allocations should be confirmed on the Loan Estimate and Closing Disclosure from a lender.

Sources

Frequently Asked Questions

What is the difference between FHA and conventional?

Conventional loans require higher credit scores (620+) but allow PMI removal at 80% LTV. FHA accepts lower scores (580+) with 3.5% down, but charges upfront MIP (1.75%) plus annual MIP (0.85%) for the life of the loan on most loans. If you have good credit, conventional typically costs less long-term.

How do I qualify for a VA loan?

VA loans are available to veterans, active-duty service members, and eligible surviving spouses. You need a Certificate of Eligibility (COE) from the VA. Benefits include zero down payment, no PMI, competitive rates, and limited closing costs. The funding fee (2.15% first use) can be rolled into the loan.

What is a jumbo mortgage?

A jumbo loan exceeds the conforming loan limit set by the FHFA. Because these loans cannot be sold to Fannie Mae or Freddie Mac, they typically require higher credit scores, larger down payments, and slightly higher interest rates.

Can I remove PMI from a conventional loan?

Yes. You can request PMI removal when your loan balance reaches 80% of the original purchase price. By law, servicers must automatically cancel PMI at 78% LTV based on the original amortization schedule. You can also get a new appraisal to show equity if home values have risen.

How much should I budget for closing costs?

Plan for 2-5% of the home price. Costs include lender origination fees, appraisal, title search/insurance, attorney fees, recording fees, and prepaid taxes/insurance escrow. On a $400K home, expect $8K-$20K. Some costs are negotiable or can be covered by seller concessions.

Should I buy points to lower my rate?

One discount point (1% of loan amount) typically lowers your rate by 0.25%. On a $320K loan, one point costs $3,200 and saves ~$50/month. Break-even is about 5 years. Points make sense if you plan to stay 7+ years; skip them if you might move or refinance sooner.

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