Payment Calculator

This default sample illustrates the total monthly housing payment including the mortgage (Principal & Interest) and other related expense such as Tax, and Insurance (“PITI”). You may not want to include the property tax and hazard insurance in your payment. Many loans do NOT require escrow of these two components. Loans at 90% to value (of the purchase price) may require property tax and hazard insurance to be collected with your monthly payment, aka “impounds,” which the servicing department then pays when due on your behalf. You may change the figures to see what the impacts are on your monthly housing expense.

Home Price

Down Payment

*All down payment amounts entered may not be eligible.

Interest Rate

Loan Term

Estimated Annual Property Taxes

Estimated Annual Home Insurance

This calculator is made available to you as an educational tool only and calculations are based on borrower-input information. This is not an advertisement for the above terms, interest rates, or payment amounts. Generations Home Loans payment does not guarantee the applicability of the above terms in regards to your individual circumstances.
Calculations do not take into account certain loan-specific costs, including but not limited to payment insurance, payment insurance premiums, funding fees, HOA fees, etc.

Estimated Monthly Payment

Insurance $0

Taxes $0

P&I $0

¹Understanding Down Payments on Mortgages

A down payment is a portion of the home's purchase price that you pay upfront when closing a mortgage loan. This amount typically ranges from 3% to 20% of the home's price. The size of your down payment can affect your mortgage terms, including the interest rate and whether you need to pay for private mortgage insurance (PMI). You can get funds for a down payment by saving, receiving gifts from family, using retirement accounts (with potential penalties), or applying for down payment assistance programs.

Impact of Down Payment Amount

3% to 5%: Common for first-time homebuyers and certain loan programs.
10% to 20%: Generally recommended to avoid PMI and secure better loan terms.

Sources for Down Payment Funds

If you need assistance with your down payment, consider the following options:

Source	Description
Savings	Save money over time specifically for your down payment.
Gifts from Family	Family members can provide funds as gifts, but documentation may be required to prove it’s not a loan.
Retirement Accounts	You may withdraw up to $10,000 from an IRA without penalty for a first-time home purchase, but this reduces your retirement savings.
Down Payment Assistance Programs	Various programs offer grants or loans to help with down payments, often based on income or location.

Considerations

Retirement Savings: Using retirement funds can impact your long-term savings growth.
Assistance Programs: Check eligibility for local or state programs that may provide financial help.

By exploring these options, you can find the best way to secure the funds needed for your down payment.

²Estimated Annual Property Tax

Annual Property taxes estimates are computed on 1.25% of the purchase price computed as follows
Purchase price x 1.25% = annual property tax
Annual property tax / 12 = monthly cost

Property taxes can be collected as a part of your monthly payment making it easier for you to ensure payments are easily paid and always on time.

³Estimated Annual Home (hazard/ fire) Insurance

Typical Hazard (fire) Insurance Cost (% of Home Value)

0.25% – 0.50% of home value per year → National baseline range
0.50% – 1.00%+ → Higher-risk markets (coastal, wildfire, storm-prone areas like parts of California, Florida, Texas)

Total Interest Paid: $0

Total Cost of Loan: $0

Year	Starting Balance	Principal Paid	Interest Paid	Ending Balance

Estimated Monthly Payment

Plan Your Mortgage

Affordability Calculator

Rent vs Buy Calculator

Your next home starts with a conversation.