Tools
Mortgage calculator
Most calculators show principal and interest and stop there. This one includes property taxes, homeowners insurance, PMI and HOA dues — the number that actually leaves your account each month.
Affordability
How much house can you actually afford?
Lenders cap your housing payment near 28% of gross monthly income and total debt near 43%. Enter your numbers to see the maximum price those limits imply.
Estimated maximum home price
$498,000
A maximum is not a recommendation. Many households are more comfortable keeping total housing cost under 25% of gross income, which leaves room for retirement savings, maintenance and the unexpected.
Read the buyer's guideRate benchmarks
Where rates sit this month
National averages for well-qualified borrowers as of October 2026. Your rate will differ based on credit score, down payment, property type and lender.
| Loan type | Rate | APR | Notes |
|---|---|---|---|
| 30-year fixed | 6.18% | 6.31% | The default choice — lowest payment, most total interest. |
| 20-year fixed | 5.94% | 6.08% | A middle path with meaningful interest savings. |
| 15-year fixed | 5.46% | 5.62% | Much less total interest, roughly 45% higher payment. |
| 10/1 ARM | 5.72% | 5.9% | Fixed for ten years, then adjusts annually within caps. |
| FHA 30-year | 5.98% | 6.74% | Lower rate, but mortgage insurance usually lasts the loan's life. |
| VA 30-year | 5.81% | 6.02% | For eligible service members — no down payment, no monthly MI. |
Rates shown are illustrative national benchmarks for general information only. They are not an offer, a quote, or a commitment to lend, and they change daily. APR assumes a conforming loan amount, a 760+ credit score, 20% down and the purchase of zero discount points unless noted. Always obtain a Loan Estimate from a licensed lender for terms specific to you.
Loan programs
Which mortgage fits your situation
Five programs cover nearly every US purchase. The right one depends on your credit, your cash and your eligibility.
| Program | Min. down | Min. credit | 2026 limit | Best suited to |
|---|---|---|---|---|
| Conventional | 3% – 20% | 620+ | $806,500 (most counties) | Buyers with solid credit who want to avoid long-term mortgage insurance — PMI drops off at 20% equity. |
| FHA | 3.5% | 580+ | $524,225 (most counties) | Buyers with thinner credit files or limited savings. Note that FHA mortgage insurance usually lasts the life of the loan. |
| VA | 0% | No VA minimum | No limit with full entitlement | Eligible veterans, active-duty service members and surviving spouses. No down payment and no monthly mortgage insurance. |
| USDA | 0% | 640+ typical | Income-capped by county | Buyers in designated rural and some suburban areas who meet the household income limits. |
| Jumbo | 10% – 20% | 700+ | Above conforming limits | Higher-priced homes that exceed the conforming loan limit for the county. Expect stricter reserve requirements. |
Conforming and FHA loan limits are set annually and are higher in designated high-cost counties. Confirm current limits for your county before relying on these figures.
Mortgage FAQ
Questions about financing
What is included in a monthly mortgage payment?
Four things, often called PITI: principal, interest, property taxes and homeowners insurance. Add private mortgage insurance if you put down less than 20%, and HOA or condo dues if the property has them. Lenders qualify you on the total, not just principal and interest.
How much house can I afford?
Most lenders want your total monthly housing payment at or below 28% of gross monthly income, and all debt payments combined at or below 43%. Those are ceilings, not targets — many households are more comfortable keeping housing under 25% of gross income.
Is it worth paying discount points?
One point costs 1% of the loan amount and typically lowers your rate by about 0.25%. Divide the cost by the monthly savings to find your break-even point, usually five to seven years. If you expect to sell or refinance before then, points are a loss.
When does PMI go away?
On a conventional loan, you can request cancellation at 20% equity and the servicer must remove it automatically at 22% equity based on the original amortization schedule. FHA mortgage insurance generally lasts the life of the loan unless you put 10% or more down.
Should I choose a 15-year or 30-year loan?
A 15-year loan carries a lower rate and saves an enormous amount of interest, but the payment is roughly 40% to 50% higher. A 30-year loan offers flexibility — you can always pay extra toward principal voluntarily, which gets you much of the benefit without locking in the obligation.
How is an escrow account used?
Your servicer collects one-twelfth of your annual property taxes and insurance with each payment and pays those bills when due. Because tax assessments and premiums change, your escrow portion is re-analyzed annually and your total payment can rise even on a fixed-rate loan.
Get pre-approved before you tour
A pre-approval tells you what you can borrow and tells sellers you are serious. Apply with two or three lenders inside 45 days so the inquiries count as one.
American Homes Online is not a mortgage lender or broker and does not originate loans. Figures on this page are estimates, not offers of credit.