Twelve tools for buying, financing, and paying off a home.
A mortgage decision breaks into four stages: how much house you can afford, what the payment will actually be, which loan programme fits, and what to do with the loan once you have it. The tools below follow that sequence.
One thing worth knowing before you start: the payment your lender quotes and the payment a basic calculator produces are usually different, because principal and interest are only part of it. Property tax, homeowner's insurance, and PMI can add 25–40% on top. Use the tools that include full PITI if you want a number that matches your actual monthly obligation.
Set your price ceiling first. Affordability is driven by your debt-to-income ratio, not just your income, so existing car and student loan payments reduce what you qualify for.
Full PITI — principal, interest, taxes, and insurance — plus PMI where the down payment is under 20%.
FHA allows lower down payments but carries mortgage insurance for the life of most loans. VA requires no down payment and no monthly MI but has a funding fee. ARMs start lower and adjust — model the worst-case reset before choosing one.
Extra principal payments shorten the term dramatically on a 30-year loan because early payments are almost entirely interest. A recast is different: it lowers your payment after a lump sum without changing the rate or refinancing.
Refinancing has a break-even point set by closing costs divided by monthly saving. If you'll move before then, it costs you money.
Short answers to what people ask most before picking a tool.
