Real Estate Financing Calculator
Simulate your real estate financing with different amortization systems. Find the best mortgage option for your home purchase.
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Real estate financing allows you to purchase property by borrowing money from a lender, typically a bank or mortgage company. The property serves as collateral for the loan.
Most mortgages require a down payment of 10-20% of the property value. The remaining amount is financed over a period of 15-30 years with monthly payments that include principal and interest.
Interest rates can be fixed (same rate throughout the loan) or variable (rate changes based on market conditions). Fixed rates provide payment stability, while variable rates may offer lower initial payments.
- Larger down payment: Reduces monthly payments and total interest paid
- Credit score: Higher scores qualify for better interest rates
- Debt-to-income ratio: Keep total debt payments under 36% of income
- Shop around: Compare rates and terms from multiple lenders
- Pre-approval: Get pre-approved to know your budget and strengthen offers
- Additional costs: Factor in closing costs, insurance, and property taxes
What's the difference between fixed and variable rates?
Fixed rates remain the same throughout the loan term, providing payment stability. Variable rates can change based on market conditions, potentially offering lower initial rates.
How much down payment do I need?
Most conventional loans require 10-20% down payment. Some government programs allow as little as 3-5% down, but may require mortgage insurance.
What affects my interest rate?
Credit score, down payment amount, loan term, debt-to-income ratio, and current market conditions all influence your interest rate.
Should I choose a 15 or 30-year mortgage?
15-year mortgages have higher monthly payments but lower total interest. 30-year mortgages have lower monthly payments but higher total interest. Choose based on your budget.
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