The average cost of a house in the USA is $350,000**. Before taking a loan, make sure to know this: *“What will be the monthly cost (EMI)?”* For this, Free Mortgage Calculator is the easiest source!
What is a Mortgage Calculator?
This is an online tool which tells you the EMI by entering 3 things:
- Loan Amount ($200,000)
- Interest Rate (7.5%)
- Duration (15 or 30 years)
Next in 1 second!
4 Benefits for USA
- Budget Planning:
You can plan your home expenses ($5,000/month) by knowing the EMI - Save Interest:
Compare 15 years vs 30 years ($100,000+ difference!) - Down Payment Estimate:
20% down payment ($70,000) → EMI $500/month less - Tax/Insurance Calculation:
You can add property tax ($6,000/year) and homeowners insurance ($1,200) and see it
How to use it? (3 Steps)
- Loan Details USA:
- House price: $400,000
- Down payment: $80,000 (20%)
- Interest: 7.2% (average for 2024)
- Duration: 30 years
- Add Extra Costs (If you want):
- Property tax: $300/month
- Home insurance: $100/month
- PMI (if down payment <20%): $150/month
- Click “Calculate”:
Main EMI + Total Interest will be shown
Best Free USA Calculators:
| Calculator | Special thing | Link |
|---|---|---|
| Zillow | Estimate the value of the house | zillow.com/mortgage-calculator |
| NerdWallet | Show the effect of Credit score | nerdwallet.com/mortgages/calculator |
| Bankrate | FHA/USDA loans options | bankrate.com/mortgages/mortgage-calculator |
| SmartAsset | Add Local tax rates | smartasset.com/mortgage/mortgage-calculator |
Expert Tips for USA:
- Check your Credit Score:
740+ score = 6.5% good | 620 score = 8.5% good - Ways to avoid PMI:
If you give 20% down payment, you won’t have to pay PMI ($100-$300/month) - Buy Points:
Buy “points” to reduce loan (1 point = 1% extra on loan) - ARM vs Fixed:
Fixed loan (same loan for 30 years) | ARM (less loan for first 5 years)
US Example:
John & Evelyn(Texas):
- House price: $350,000
- Down payment: $70,000 (20%)
- Loan amount: $280,000
- Interest: 7%
- Tenure: 30 years
The result: - Main EMI: $1,863
- Total Interest: $390,000
Note: Property tax ($500/month) and insurance ($150/month) separately!
Never make these 3 mistakes:
- Only looking at the EMI:
Forgetting the closing costs ($10,000+) - Not taking pre-approval:
Make sure to take the pre-approval letter from the bank before seeing the house - Put in adjustable rate:
In ARM loans, interest can increase up to 2x (after 5 years)
What to do now?
- Request a Credit Report:
Get a free report from AnnualCreditReport.com - Try a Calculator:
Enter your details on the Zillow calculator - Talk to a Local Lender:
Credit unions (NFCU, PenFed) offer much better rates
“Buying a home is America’s dream – the calculator is the first step to making it a reality!”