I found a home — now what do I actually pay?
Mortgage Calculator
Plug in a home price. Get your monthly payment. No finance degree required. 🎓
Not sure what you can spend? Start with our Affordability Calculator — it'll tell you.
See a term that sounds like it was invented to confuse you? Hover the ⓘ icons — we'll translate it into English.
How Buying a Home Actually Works (60-Second Version)
Fall in Love
You find a home, try not to get too emotionally attached, and agree on a price with the seller. (Spoiler: you will get emotionally attached.)
Put Money Down
You hand over some cash upfront (the "down payment"). Think of it as telling the bank "I'm serious." More cash down = less borrowing.
Borrow the Rest
A bank covers the rest. This loan is your "mortgage." Yes, you're basically in a 30-year relationship with a bank.
Pay Monthly
Every month, you send the bank a payment: part goes to your loan, part goes to their fee (interest). Rinse and repeat for 15–30 years.
👇 Now let's crunch YOUR numbers
First-Time Buyer? Welcome Aboard. 🚀
We built this for people who've never bought a home (and find most financial sites insufferable). Zero jargon. Zero judgment. Start with the calculator, then hit our step-by-step roadmap.
New to the U.S.? We've Got You. 🌍
Mortgages are weird everywhere, but the American system takes the cake. We break down escrow, PMI, closing costs, and all the stuff that makes zero sense to newcomers.
🏡 Mortgages in 30 seconds: You want a house. You don't have $350K in your couch cushions. So a bank lends you the money, and you pay it back monthly over 15–30 years. Each payment has two parts: principal (paying back what you borrowed) and interest (the bank's fee for being so generous with their money).
Slide, type, tinker — hover the ⓘ icons when the jargon gets weird.
Your Monthly Payment
$1,770
every month for 30 years (yes, really)
Loan Amount
$280,000
Total Interest Paid
$357,125
Total Cost of Loan
$637,125
Spoiler: the bank does pretty well for itself
This is the rule of thumb banks use — and you should too:
28% Rule
Your total housing costs (mortgage + taxes + insurance) should eat no more than 28% of your gross monthly income. Go higher and you're entering "house poor" territory.
36% Rule
ALL your monthly debts combined should stay under 36% of gross income. Beyond this, things get uncomfortable.
Example: Earning $6,000/month? Keep housing under $1,680 and total debts under $2,160. Your future self will thank you.
Go biweekly. Pay half your mortgage every two weeks instead of monthly. You'll make 26 half-payments (= 13 full payments) per year. One sneaky extra payment that shaves YEARS off your loan.
Round up. Payment is $1,770? Pay $1,800. That extra $30 goes straight to principal. Over 30 years, you'll save thousands. Coffee money → equity.
Rate shop like your wallet depends on it. Get quotes from 3–5 lenders. A 0.25% difference on $280K saves you $15,000–$30,000. That's a nice vacation fund.
Boost your credit first. Going from 680 to 740 can drop your rate by 0.5%+. Pay down credit cards, fix errors on your report, and be patient. It pays off — literally.
We show principal + interest only to keep things clear. But your actual monthly bill? It'll have a few more line items:
$200–$600+/mo depending on where you buy
$100–$200+/mo on average
$100–$250+/mo if you put less than 20% down
$100–$500+/mo (if your community has one)
How much down payment do I actually need?
The "20% rule" is more like a "20% suggestion." Conventional loans often accept 3–5% down. FHA loans go as low as 3.5%. The trade-off? Less down = PMI and more interest over time.
15-year or 30-year — which should I pick?
30-year = lower payments, more flexibility, way more interest paid. 15-year = higher payments, less flexibility, tens of thousands saved. There's no wrong answer — just different trade-offs. Try both in the calculator above!
What credit score do I need?
620+ for conventional loans. 740+ gets you the VIP rates. FHA accepts 580+. The higher your score, the lower your rate, and the more money stays in YOUR pocket.
What's the difference between interest rate and APR?
Interest rate = the base cost of borrowing. APR = the interest rate + fees baked in. APR is always a bit higher and gives you the TRUE cost. Always compare APR when shopping lenders — it's the only honest number.
Can I pay it off early?
Almost always, yes! Most modern mortgages have no prepayment penalties. Extra payments toward principal can save you a jaw-dropping amount of interest and chop years off your loan. Check out the amortization table above to see why.
📖 Still confused by a term? We've got you.
Our glossary has 35+ mortgage and home buying terms explained like a smart friend would — no textbook vibes.
Browse the Glossary