Mortgage Calculator

The calculator estimates your total monthly payment based on home price, down payment, loan term, interest rate, property taxes, and HOA dues. It breaks down how much of your payment goes to principal and interest versus taxes and fees. For the most accurate estimate, enter your specific location and current interest rate, these vary by county and lender.

The standard conventional loan down payment is 20%, which lets you avoid private mortgage insurance (PMI). However, many buyers put down less, FHA loans allow as little as 3.5% down, and some conventional loans accept 3–5%. The right amount depends on your financial situation, how competitive you want your offer to look, and whether you prefer to preserve cash reserves.

Your credit score is one of the biggest factors lenders use to set your interest rate. Generally, a score above 740 will qualify you for the best available rates. Scores between 620 and 739 may still qualify, but at a higher rate. Even a 0.5% difference in rate can add up to tens of thousands of dollars over a 30-year loan. If your score needs work, your MHB agent can connect you with a trusted lender who can advise on the fastest path to improvement.

Pre-qualification is an informal estimate of what you might be able to borrow, based on self-reported income and debt. Pre-approval is a formal lender review of your financial documents, tax returns, pay stubs, bank statements, resulting in a conditional commitment for a specific loan amount. In Dane County's competitive market, sellers take pre-approved buyers far more seriously. We recommend getting pre-approved before you start making offers.

Your mortgage payment is just one piece of the total cost of homeownership. Budget for: closing costs (typically 2–5% of the purchase price), a home inspection ($300–$600), appraisal fee ($500–$700), homeowner's insurance, property taxes, and any immediate repairs or updates. Your MHB agent will walk you through a realistic cost breakdown before you make an offer so there are no surprises at closing.

Private mortgage insurance (PMI) is required by most lenders when your down payment is less than 20% of the purchase price. It protects the lender, not you, and typically costs 0.5–1.5% of the loan amount annually. You can avoid it by putting 20% down, using a piggyback loan (80/10/10 structure), or choosing a lender-paid PMI option that rolls the cost into a slightly higher rate. Once your equity reaches 20%, you can request PMI removal.

It depends on your priorities. A 15-year mortgage means higher monthly payments but far less interest paid over the life of the loan and faster equity building. A 30-year mortgage keeps your monthly payment lower and gives you more flexibility, you can always pay extra toward principal when your budget allows. Most first-time buyers in Dane County choose 30-year loans for the breathing room, but the right answer is personal. Run both scenarios in our calculator to see the difference in real numbers.