Mortgage Payment Estimator

Paying Your Loan

Use our Mortgage Payment Estimator to estimate the monthly principal + interest (the "mortgage payments") on a home loan. Just enter the estimated purchase price of the home, the amount of down payment you’re able to provide (from your own financial resources as well as the Maryland Mortgage Program's Down Payment Assistance and Partner Match Programs), and the mortgage’s interest rate (see Interest Rates for today’s rates).

Of course, when you get a home loan to purchase a property, you need to consider more than just the basic mortgage repayments. Homeowners typically have several additional costs associated with homeownership that could add another 30% to 40% to the estimated monthly mortgage payments. 

These may include:

  • Mortgage Insurance;
  • Property Taxes;
  • Home / Hazard Insurance; and
  • Home Owners Association (HOA) Fees.

Keep reading after the calculator to learn more about these homeownership costs.​​

​Budgeting for All Your Mortgage and Homeownership Costs

The Mortgage Payment Estimator can help you estimate how much you can afford when purchasing a home by calculating the monthly “principal + interest” payments you’ll need to make on the selected mortgage amount at the selected interest rate value.  While these payments represent a significant part of the costs of homeownership, they are not the only costs associated with a mortgage.

Talk To Your Lender about Your Budget

The best thing you can do when estimating your costs of homeownership, and determining how much you can afford, is to talk to your Lender (see our Find a Lender page).  Not only can a Lender answer general questions you may have about the typical costs of homeownership, they can also work with you to estimate more accurate costs associated with your particular situation and a specific property or neighborhood. Some additional costs include:

Mortgage Insurance

Mortgage Insurance is an insurance policy that protects a lender or title holder in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligations of the mortgage.  Mortgage insurance may be available as a “pay-as-you-go" premium payment, which means you’ll pay an amount each month along with your principal + interest payment, or it may be required as a lump sum payment at the time the mortgage is originated.

Generally, the higher the loan-to-value ratio, the more expensive the Mortgage Insurance will be as a percentage of the initial mortgage amount. For example, for a loan in which the borrower has made a 10-percent down payment (i.e. the loan-to-value ratio is 90 percent) the Private Mortgage Insurance, or PMI, may be about 0.75 percent of the initial mortgage amount; a loan with an 85-percent loan-to-value may charge around 0.50 percent (these are typical values, but should not be considered estimates for your situation – talk to your Lender for an estimate).

Property Taxes

Property taxes are taxes assessed on real estate by the local government. The tax is based on the value of the property (including the land) you own.

The Maryland Department of Assessments and Taxation provides information on property taxes, including current and municipal tax rates.  See A Homeowner’s Guide to Property Tax and Assessments for up-to-date information and rates, and talk to your Lender to estimate payments for specific properties.

Home / Hazard Insurance

Homeowners insurance, also referred to as hazard insurance, provides a way for a homeowner to cover their losses if a disaster should cause damage to their property. Lenders often require that a homeowners insurance policy be in place before finalizing a mortgage settlement. Many factors influence the total annual cost of this insurance, including the extent of the coverage and the location of the property.

One factor in the cost of homeowners insurance is what circumstances are covered under a particular policy. Some examples of typical disasters and incidents that are covered under a basic homeowners insurance policy are fire, vandalism and wind. According to the Federal Reserve Bureau, the average cost of an annual premium for homeowners insurance is between $300 and $1,000.

While annual premiums are typically paid in monthly installments, some lenders might require a homeowner to pay the first year's annual premium in full before completing a mortgage settlement.

HOA (Home Owners Association) Fees

HOA fees are costs that must be paid monthly by owners of certain types of residential property to an organization that assists with maintaining and improving that property and others in the same group. HOA fees are almost always levied on condominium owners, but they may also apply in some single family neighborhoods.

Condo owners almost always pay HOA fees to cover the costs of maintaining the condo building's common areas such as lobbies, patios, landscaping, swimming pools and elevators. The association may levy special assessments from time to time if the HOA's reserve funds are not sufficient to cover a major repair, such as a new elevator or new roof. HOA fees can also apply to single family houses in certain neighborhoods, particularly if there are common amenities like tennis courts, a community clubhouse or neighborhood parks to maintain.​​