Down Payment While 20 percent is often cited as the ideal down payment because it allows you to avoid private mortgage insurance (PMI), most buyers put down less. Some loan programs require as little as 3.5 percent (FHA loans) or 3 percent for qualified borrowers on certain conventional loans. Keep in mind that putting down less than 20 percent will typically require you to pay PMI, which increases your monthly payment. The more you put down, the lower your monthly payments will be, or the more expensive a home you can afford.

Loan Term Your loan term is the length of time you have to repay the loan. Common options include 30-year and 15-year fixed terms. A longer term means lower monthly payments, but you'll pay more in interest over the life of the loan. A shorter term means higher monthly payments, but you'll build equity faster and pay significantly less in total interest.

Loan Type The two most common mortgage types are fixed-rate and adjustable-rate loans. Fixed-rate loans keep the same interest rate for the life of the loan, so your monthly payment stays consistent and predictable, making it easier to budget long-term. Adjustable-rate mortgages (ARMs) typically start with a lower interest rate that remains fixed for an initial period, then adjusts annually after that. For example, a 5/1 ARM holds its rate for the first five years, then adjusts each year after. While the lower starting rate can be appealing, your rate and monthly payment could increase significantly once the fixed period ends.

Interest Rate This field is pre-filled with the current national average mortgage rate for a 30-year fixed loan. Your actual rate will vary based on factors such as your credit score, loan type, and down payment amount.

Property Tax Rate The calculator includes an estimated property tax based on the home's value. Tax rates vary significantly by location, so you may want to enter your local rate for a more accurate estimate. You can edit this in the advanced options.

Home Insurance Homeowners insurance is typically required by lenders and helps protect your home against damage and loss. The calculator includes an estimated amount, which you can adjust in the advanced options to reflect your actual or expected premium.

HOA Fees A homeowners association (HOA) fee is a charge paid by owners of certain residential properties such as condos or homes in planned communities, to cover the maintenance and upkeep of shared spaces and amenities. HOA fees are most commonly billed monthly, but some associations bill quarterly or annually. Not all properties have HOAs. If yours does not, simply enter $0 in this field.