Mortgage Calculator

When determining how much home you can afford, lenders consider several key factors, including:

• Income – Your monthly income is the baseline for determining what you can afford.

• Debt-to-Income Ratio (DTI) – This ratio compares your monthly debt payments to your monthly income. The lower your DTI, the better your chances of qualifying for a loan.

• Credit Score – A higher score can increase your chances of getting approved and help secure better mortgage rates.

• Loan Terms – Your loan term (most commonly 15 or 30 years) affects your monthly payment and how much interest you pay over time. The type of loan you qualify for (such as VA, FHA, or conventional) also plays a role by influencing down payment requirements, mortgage insurance costs, and loan eligibility

The size of your down payment depends on your loan type and financial situation. Many people believe they need 20% down, but that’s a common misconception. While putting 20% down can help you avoid extra costs, it’s not required to buy a home. For qualified buyers, some loans require little to no down payment, while others may have higher requirements.

• 0% down payment – If you qualify, VA loans and USDA loans allow you to buy a home with no down payment.

• 3% down payment – Conventional loans can require as little as 3% down, making homeownership more accessible.

• 3.5% down payment – FHA loans require at least 3.5% down, offering more flexibility for borrowers with lower credit scores.

If you put down less than 20%, you may have to pay Private Mortgage Insurance (PMI)—an additional monthly cost that protects the lender in case of default.

• PMI applies to most conventional loans with a down payment of less than 20%.

• It’s not forever. You can request to remove PMI once you reach 20% equity in your home.

A larger down payment can lower your monthly payment and save you money on interest, but it’s not always necessary. The right amount depends on your financial goals and loan options. A loan officer can help you find the best path forward based on what works for you.

There are a few common ways to estimate how much of your salary should go toward your mortgage loan, depending on the approach you prefer. For more details, check out our full blog post on how much of your salary should go toward a mortgage payment.

Use our Affordability Calculatorto see what fits your budget and get a clearer picture of your potential monthly payment.

You might not think about your credit score every day, but when it comes time to buy a home, it becomes a key player in your mortgage journey. Your credit score helps lenders gauge your reliability, and it can impact several important factors:

• Lower interest rates – The higher your credit score, the lower the risk for lenders. This often translates to better interest rates, which can reduce your monthly mortgage payments and save you thousands over the life of the loan.
• Better loan terms – A strong credit score may help you qualify for more favorable loan terms, such as lower fees and access to certain loan programs with better conditions.
• Higher approval chances – While lenders consider multiple factors, including income and debt, a solid credit score can improve your likelihood of getting approved for a mortgage. It shows lenders that you have a history of making payments on time.

In short, your credit score is more than just a number—it directly affects your loan approval, the interest rate you receive, and how much you’ll pay each month. A higher score can lead to potential savings, while a lower score might mean higher rates and larger payments.

• Fixed-Rate Mortgage – Stable monthly mortgage payments over the life of the loan.

• Adjustable-Rate Mortgage (ARM) – Interest rates may change over time.

• **VA Loans & USDA Loans **– Often require no down payment and lower mortgage rates.

• FHA Loans – Requires a 3.5% down payment and can be more lenient on credit scores but includes mortgage insurance premiums, affecting your monthly payment.

  Note: Qualification is required. Movement Mortgage is not affiliated, endorsed, or sponsored by the Department of Veterans Affairs or Federal Housing Administration, United States Department of Agriculture or any government agency.

Running the numbers is a great first step, but what comes next? Here’s how to turn your estimates into a real plan for buying a home:

• Talk to a lender – Connect with a loan officer to explore your options. They can help you understand loan programs, interest rates, and what might work best for your budget.
• Apply for pre-approval – See how much you could qualify for your mortgage loan to understand how much you can borrow. Pre-approval gives you a clearer picture of how much home you can afford based on your financial situation. It also helps you shop with confidence, knowing your price range which can make you a stronger buyer when it’s time to make an offer.
• Connect with a real estate agent and begin your search – With your budget in mind, a real estate agent can help you find homes that fit your needs, negotiate on your behalf, and guide you through the homebuying process.