Principal and interest

This portion is based on the loan amount, interest rate and repayment term. It is usually the easiest part to calculate, but it is not the complete payment.

Property taxes and insurance

Taxes and homeowners insurance can change by property and over time. Use property-specific estimates whenever possible instead of relying on a broad rule of thumb.

Mortgage insurance and HOA dues

Some loan structures may include mortgage insurance, and some properties have association dues. Both belong in the affordability conversation before you make an offer.

Plan a range, not a maximum

Compare several purchase prices and down-payment choices. The most useful target is often the range that preserves savings and monthly flexibility—not the highest possible approval.

Replace assumptions before acting

Online tools are a starting point. A personalized review should use the property, loan program, credit profile and current market information applicable to your situation.