Mortgage & Loan Calculators

Underwriters generally apply the 28/36 rule — housing at or below 28% of gross monthly income, total debt at or below 36%. Many conforming programmes stretch back-end DTI to 45% or more with compensating factors.

Prequalification is an informal estimate from stated figures. Preapproval involves verified income, assets and a credit pull, and carries materially more weight with sellers.

A 15-year term eliminates most lifetime interest and usually prices lower, but demands a much higher payment. A disciplined alternative is a 30-year note voluntarily prepaid toward a 15-year schedule.

When the rate improvement recovers total closing costs within your expected remaining tenure. Compare against your existing schedule — resetting a 22-year balance into a new 30-year term can raise lifetime interest even at a lower rate.

Private mortgage insurance is required below 20% equity. Under the Homeowners Protection Act it terminates automatically at 78% loan-to-value on the original schedule, and may be cancelled earlier on request at 80%.

FHA permits lower credit scores and a 3.5% down payment but carries mortgage insurance for the life of the loan in most cases. Conventional requires stronger credit but allows PMI removal at 20% equity.

Typically 2% to 5% of the purchase price, covering origination, appraisal, title, recording, transfer taxes, prepaid interest and initial escrow funding. They are additional to the down payment.

Almost always, and prepayment penalties are rare on modern conforming loans. Extra principal delivers a guaranteed return equal to your interest rate.