Step 1: Enter the Home Price Example: $500,000

Step 2: Choose Your Loan Type & Down Payment

• FHA Loan

  • Requires 3.5% down -Example: $17,500 on a $500,000 home

• VA Loan

  • 0% down (enter $0)-Available to eligible Veterans and service members

Step 3: Select Loan Term

• 30 years (most common option)

Step 4: Enter Your Interest Rate

• Use the National Average Rate shown in the chart above

• Your actual rate may vary based on credit, loan type, and market conditions

Step 5: Estimate Property Taxes & Insurance

• Property Taxes (California):

  • Estimate 1.25% of the purchase price annually- Example: $6,250 per year on a $500,000 home

• Homeowners Insurance:

  • If not in a fire-risk area, estimate $1,000 – $1,600 per year-Rural or high-risk areas may be higher

Step 6: Add Mortgage Insurance (If Required)

• FHA Loan

• Includes 0.55% annual mortgage insurance

• Also includes an Upfront Mortgage Insurance Premium (UPMI)

  • This is not included in the calculator

  • Typically adds about $40–$60 per month to the payment

• VA Loan- No monthly mortgage insurance

• A one-time VA funding fee may apply

  • Often waived if you receive VA disability income

Important Note

Mortgage calculators are a great planning tool, but they don’t replace a full loan review. Final payments and qualification depend on your credit, income, debts, loan program, and the specific property.

If you’d like help reviewing real numbers or building a home-buying plan, I’m happy to walk through it with you and make sure you’re set up the right way.