Mortgage Calculator
Core Bank’s free mortgage calculator allows you to quickly and easily estimate your monthly mortgage payment based on home price, down payment, and more. Get your estimate now!
How to Calculate Your Mortgage Payment
Whether you’re looking to purchase a new home or refinance your current one, our mortgage calculator helps you estimate your mortgage payment, including principal and interest, based on interest rate, down payment, home value and location, and other factors. Learn how to use our calculator below!
Step 1:
Put in Your Estimated Home Value
Use the listed price of your new home or the current estimated value of the home you’re refinancing.
Step 2:
Enter Your Down Payment
If you’re buying a new home, enter your down payment percentage. Most home loans require a down payment of at least 3%, though some home loans—like VA loans—may allow zero down. If you’re refinancing, enter the amount of equity you currently have in your home.
Step 3:
Indicate Your Interest Rate & Amortization Period
Enter your interest rate and amortization period. Test different interest rates to see how your monthly payment and total mortgage amounts are affected.
Step 4:
Click to Calculate Your Mortgage
Hit “Calculate” to receive your monthly payment, total mortgage amount with interest, and total amount with your down payment. Click the bar graph icon to view the principal, interest, and balance trend line over your amortization period.
How to Lower Your Mortgage Payment
There are a number of factors that determine your home loan and mortgage. To try and qualify for lower mortgage rates, you might:
- Increase Your Credit Score: A high credit score increases a lender’s confidence that you’ll make payments, which can lead to lower total mortgage rates. Reduce your debt and always pay your bills on time.
- Put Down a Higher Down Payment: While 3% is the minimum required percentage down for most homes, a higher down payment—such as 20%—can lead to a lower mortgage interest rate.
- Choose an Appropriate Loan Program: Fixed-rate, long-term loans can result in lower monthly payments and consistent interest rates, making your mortgage more affordable.
- Refinance to Lower Your Interest Rate: Replacing your current mortgage with a new loan that offers a lower interest rate is a great way to lower your mortgage payment.
How Much Mortgage Can I Afford?
A mortgage payment calculator can help figure out what home and mortgage you can afford, saving you time in the refinancing or home buying process. Here are a few additional tips:
- Follow the 28/36 Rule: The 28/36 rule says your monthly housing expenses—including principal, interest, insurance, and taxes—should not be greater than 28% of your gross monthly income, and when combined with your monthly debt payments, should not exceed 36%. This is a general guideline that can help you avoid taking on more debt than you’re able to manage.
- Consider Closing Costs: These one-time fees—including a loan’s origination fee, appraisal fees, and more—can impact how much home you can afford by increasing upfront expenses. These costs are typically 2 to 5% of the total loan amount.
- Remember Homeowners Insurance: Factoring in required insurance coverage—especially if you’re in a high-risk area for natural disasters—will give you a better idea of overall affordability.
How Lenders Determine How Much You Qualify For
Lenders consider a variety of factors when determining how much to lend to you, including:
- Credit Score: Your credit score signals to lenders how much risk there is in lending to you. A higher credit score indicates more financial responsibility and is more likely to result in lower monthly mortgage rates.
- Gross Monthly Income: Lenders use your monthly income (before taxes) to evaluate the stability of your job or means of income. Generally, it’s recommended that your mortgage payment is less than 28% of your gross monthly income.
- Debt-to-Income (DTI) Ratio: Your DTI ratio shows how much of your income goes toward debt payments. Typically, a DTI of 43% or less is preferred. Calculate your DTI by dividing your monthly debt payments by your gross monthly income.
- Loan-to-Value (LTV) Ratio: Your LTV ratio compares your home’s value to the amount of the loan—the bigger the down payment, the lower your LTV ratio, and the less risk you pose to lenders.
Types of Home Loans to Consider
The type of home loan you choose can significantly impact both your down payment and monthly payments. While fixed-rate mortgages are ideal for borrowers who plan to stay in their home for a long time, adjustable-rate mortgages are best for those planning to move or refinance within a few years of the loan.
- Conventional Loan: These loans are backed by private lenders and more closely consider factors like credit scores and DTI ratios. These loans are perfect for those with excellent credit and higher down payments as they often offer lower interest rates.
- VA Loan: Supported in part by the Department of Veterans Affairs, a VA loan allows eligible veterans to—in most cases—buy a home with zero down payment, though a funding fee is often required.
- FHA Loan: FHA loans are insured by the Federal Housing Administration. They may be more lenient on credit scores and typically offer lower down payments, though they often require long-term mortgage insurance.
- Jumbo Mortgages: Jumbo loans allow borrowers to buy more expensive properties at competitive rates. They usually require 20% down, and loan limits typically change on an annual basis.
- Home Construction Loan: If you’re building a home, there are a number of construction and building loan options that convert to permanent mortgages when the work is complete.
Find the right mortgage loan for you
Mortgage FAQs
How can I get pre-approved for a mortgage?
The best way to get pre-approved for a mortgage is to apply online or stop into a local branch to speak with our qualified mortgage lenders. The details you’ll need to provide will depend on your specific needs and goals, but you’ll likely be asked to include proof of identity, credit score, as well as key financial documents—like pay stubs, tax returns, bank statements, and details about your debt and assets. If approved, you’ll receive a pre-qualification letter for how much you qualify for, which can strengthen your offer when house hunting.
What's the difference between interest rate and APR?
The interest rate is the starting fee charged by the lender for borrowing money, which determines your monthly payment. The annual percentage rate (APR) offers a broader view of total costs by factoring in your interest rate along with any additional costs—such as origination fees, insurance, closing costs, and more. APR gives you a better idea of the total cost of an offer compared to the interest rate alone.
What is principal and interest (P&I)?
Principal is the amount borrowed from the lender. Interest is what the lender charges you to borrow the principal.
What is mortgage insurance?
Mortgage insurance protects lenders in case borrowers default on their mortgage payments. Insurance is generally required with down payments less than 20% since they’re seen as having higher risk for the lender. Private mortgage insurance (PMI) is common for conventional loans and is usually paid as part of your monthly mortgage payment.
What are mortgage points?
Mortgage points, also known as prepaid interest, are upfront costs paid to your mortgage lender at closing in exchange for a lower interest rate. Each point is equal to 1% of the total loan amount—for example, on a $200,000 mortgage, one point would cost $2,000. Paying these points can give you a lower monthly mortgage payment and allow you to save more on interest.
