Home Price
The amount you plan to pay for your home.

Down Payment
Most loans require at least 3%, though VA or USDA loans may allow zero. A 20% or higher down payment eliminates PMI.

Loan Program
Choose 30-year fixed, 15-year fixed, or others to see cost impacts.

Interest Rate
The annual cost of borrowing, as a percentage.

PMI
Required if down payment is less than 20%, typically $50–$150 monthly.

Property Taxes
Based on home price and ZIP code, divided by 12 for monthly cost.

Home Insurance
Annual premium, often 0.5%–1% of home value, for damage or liability.

HOA Dues
Monthly fees for community services, if applicable.

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It’s calculated as a percentage of your loan amount, typically 0.5% to 1% annually, added monthly. For a $298,000 loan ($300,000 home, $2,000 down), a 1% PMI rate yields ~$248/month.

Factors Affecting PMI Costs
- Down Payment: Smaller down payments increase PMI rates.
- Loan-to-Value Ratio (LTV): Loan amount divided by home value; higher LTV raises PMI.
- Credit Score: Higher scores can lower PMI rates.
- Mortgage Type: Adjustable-rate loans may have higher PMI.
- Loan Amount: Larger loans increase PMI costs.

Payment Options
- Monthly: Added to your mortgage payment.
- Upfront: Paid at closing to reduce monthly costs.
- Split: Part upfront, part monthly.

Key Notes
- PMI is Temporary: Cancel when equity reaches 20%.
- Protects the Lender: Covers lender losses if you default.
PMI uses 1% for LTV > 90%, 0.75% for LTV 80%–90%, 0% for LTV ≤ 80%. Override in advanced settings if needed.