Question 1

How is a monthly mortgage payment calculated?

Accepted Answer

Your monthly principal and interest (P&I) payment is calculated using the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Your full PITI payment also includes property taxes, homeowners insurance, PMI (if applicable), and HOA fees.

Question 2

What is included in a mortgage payment?

Accepted Answer

A full mortgage payment (PITI) includes: Principal — the portion that reduces your loan balance; Interest — the cost of borrowing; Taxes — your property tax divided into 12 monthly installments; and Insurance — your homeowners insurance premium. If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), typically 0.5%–1% of the loan annually.

Question 3

How much house can I afford on $80,000 salary?

Accepted Answer

On an $80,000 annual salary (~$6,667/month gross), most lenders allow up to 28% for housing costs ($1,867/month) and 36–43% total debt. With 20% down and a 7% rate, you could afford approximately $275,000–$310,000, depending on your existing debts and local property taxes. Use our Affordability Calculator for a personalized estimate.

Question 4

What credit score do I need for a mortgage?

Accepted Answer

Conventional loans typically require a minimum 620 credit score, though 740+ gets you the best rates. FHA loans accept scores as low as 580 (with 3.5% down) or 500 (with 10% down). VA loans have no official minimum but most lenders prefer 620+. A higher score can save tens of thousands of dollars over the life of the loan.

Question 5

Is it better to pay biweekly or monthly?

Accepted Answer

Biweekly payments save significant interest and pay off your loan faster. By paying half your monthly amount every two weeks, you make 26 half-payments per year — equivalent to 13 monthly payments instead of 12. On a $300,000, 30-year loan at 7%, this saves approximately $58,000 in interest and pays off the loan 4–5 years early.

Question 6

When can I remove PMI?

Accepted Answer

You can request PMI cancellation once your loan balance reaches 80% of the original home value (20% equity). By law, lenders must automatically cancel PMI when your balance reaches 78% LTV. You can reach 20% equity faster by making extra payments, or if your home appreciates significantly — in which case you can request an appraisal to prove the new value.

Question 7

What is a good mortgage rate in 2026?

Accepted Answer

In 2026, a 30-year fixed rate below 7% is considered competitive for borrowers with good credit (720+). The national average hovers around 6.9–7.1% for 30-year fixed, and 6.3–6.5% for 15-year fixed. Rates vary based on your credit score, down payment, loan type, and lender. Shopping multiple lenders can save 0.25–0.5% — worth tens of thousands over the loan.

Month	Date	Payment	Principal	Interest	Balance
1	Jun 2026	$2,129	$262	$1,867	$319,738
2	Jul 2026	$2,129	$264	$1,865	$319,474
3	Aug 2026	$2,129	$265	$1,864	$319,208
4	Sep 2026	$2,129	$267	$1,862	$318,942
5	Oct 2026	$2,129	$268	$1,860	$318,673
6	Nov 2026	$2,129	$270	$1,859	$318,403
7	Dec 2026	$2,129	$272	$1,857	$318,131
8	Jan 2027	$2,129	$273	$1,856	$317,858
9	Feb 2027	$2,129	$275	$1,854	$317,583
10	Mar 2027	$2,129	$276	$1,853	$317,307
11	Apr 2027	$2,129	$278	$1,851	$317,029
12	May 2027	$2,129	$280	$1,849	$316,749

Loan Product	Interest Rate	APR	Points
30-Year Fixed	6.95%	7.12%	0.6
15-Year Fixed	6.3%	6.52%	0.5
5/1 ARM	6.45%	7.85%	0.4
FHA 30-Year	6.75%	7.61%	0.8
VA 30-Year	6.5%	6.72%	0.3
Jumbo 30-Year	7.1%	7.25%	0.7

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