Your mortgage is likely the biggest monthly expense you’ll take on, and knowing what you can realistically afford is a key first step in the homebuying process.
If you’re trying to figure out how much home you can afford, CNBC Select’s mortgage payment calculator shows how various factors will change the size of your monthly mortgage payment — including home price, loan term, interest rate, down payment and the state you live in.
In addition to the principal and interest, it estimates private mortgage insurance (PMI), property taxes and homeowners insurance to give you a clearer picture of what your monthly outlay will be.
Whether you’re buying your first home or refinancing an existing loan, understanding both your estimated monthly payment and overall home affordability can help you shop with more confidence in today’s housing market.
How to use the mortgage calculator
To try out the mortgage calculator, you’ll need some information and ballpark figures:
Here is more on each factor.
1. The home price
Whether you have a house in mind or are just running the numbers, you can plug in different home prices as the basis for your calculations.
2. Your down payment
Your monthly housing payment depends on how much you put down up front. The larger the down payment, the less you’ll have to finance.
Most lenders expect a down payment of at least 3% to 5% on a conventional 30-year mortgage. FHA loans only require 3.5% if you have a 580 FICO score or 10% if you have a 500 score.
A jumbo loan, which exceeds the loan limits set by the Federal Housing Finance Agency, usually requires a down payment of at least 10%.
Online mortgage lenders can often help homebuyers with lower interest rates and faster closing times
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620 for conventional loan; 580 for FHA loans
5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan
3. Your loan term and type
The most common type of home loan is a 30-year fixed-rate mortgage. However, a shorter 15-year term can get you a lower rate.
With CNBC Select’s calculator, you can calculate payments with a conventional loan, jumbo loan or FHA loan. You can choose a fixed-rate loan with terms of 15 or 30 years or an adjustable-rate loan with terms of 5/1, 7/1 or 10/1.
4. The interest rate
The interest rate is the amount you pay the lender for borrowing to buy your home, expressed as a percentage of the total purchase amount (or principal). In 2025, average interest rates on conventional 30-year fixed-rate mortgages have hovered between 6.5% and 7.0%.
Jumbo loan rates are usually higher, while government-backed mortgages, like VA loans, tend to have much lower rates.
5. Your location
Homes are available at a range of prices in every region, but indicating which state you’re planning to live in lets the calculator estimate property taxes and homeowners insurance premiums, which are then factored into your monthly payment.
Using the mortgage calculator: a 3-bedroom home in Sioux Falls
Let’s say you’re eyeing a $300,000 rancher in Sioux Falls, South Dakota, and have saved up $30,000 for a 10% down payment (a good amount for most conventional mortgages). You can select a 30-year fixed-rate mortgage from among the loan types and then enter an estimated interest rate, say 6.5%.
According to the calculator, you would spend roughly $2,452 a month on housing, broken down into $1,763 on mortgage principal and interest, $259 on private mortgage insurance, $100 on homeowners insurance and $330 on property taxes.
The exact amounts for PMI, insurance and taxes will vary, but this estimate will allow you to confidently shop for the lender and loan type that meets your budget.
How much house can you afford?
While our calculator estimates your monthly housing costs at different price points, it doesn’t know how much money you earn or have saved — or what percentage of that you’re comfortable spending. You’ll need to figure those out on your own.
One rule of thumb is the 28/36 method, which suggests limiting all housing costs to 28% of your gross monthly income and all debts (including housing) to 36%. Other experts say you can push that figure a bit, spending up to 30% of your gross income on housing.
When buying a house, you’ll also want to set aside about 3% to 6% for one-time charges like lenders’ fees and closing costs.
Mortgage payment FAQs
How much of a down payment do I need?
Lenders typically require at least 3% to 5% down on a conventional mortgage. If you have a 580 FICO score, you can get an FHA loan for as little as 3.5% of the purchase price. VA and USDA loans do not require a down payment.
How do I figure out how much house I can afford?
The 28/36 rule directs buyers to keep housing expenses to 28% of gross monthly household income and total debt service to no more than 36%. Following this advice, your mortgage payment, PMI and other housing expenses should be no more than 28% of your monthly gross income.
What credit score do I need to get a mortgage?
Typically, lenders require a 620 FICO score for a conventional, VA or USDA mortgage. You can get an FHA mortgage with a score as low as 500 if you can put 10% down. If you have poor credit, some lenders will consider nontraditional credit sources, like on-time rent, utility and insurance payments.
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Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage article is based on rigorous reporting by our expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team or any third parties and pride ourselves on maintaining high journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
