Mortgage Calculator.

Fixed Rate Mortgage Loan Calculator

This calculator figures monthly mortgage payments based on the principal borrowed, the length of the loan and the annual interest rate. It also computes your total mortgage payment inclusive of property tax, property insurance and PMI payments (monthly PITI payments). Once you have calculated payments, click on the "Create Amortization Schedule" button to create a report you can print out.

For your convenience current Ashburn mortgage rates are published below.

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Current Ashburn Mortgage Rates

We publish current Ashburn mortgage rates. VA homebuyers and refinancers can use the filters at the top of the table to see the monthly payments and rates availble for their loans.

The Complete Guide to Understanding Your Mortgage Options

Couple thinking of their dream house.

For many people, buying their dream home is one of their main goals. To fulfill this milestone, you must build enough savings and prepare your finances. It also involves research and looking for the most favorable real estate deal.

Of course, this is easier said than done. While preparing, you should know about different mortgage options available in the market. Though it may sound overwhelming, once you’re well-informed, it should help you make better decisions. You may even save more by choosing the appropriate mortgage option.

To help you out, we came up with a guide to help you understand different home financing options in the market. It mainly covers conventional loans and how they compare to other mortgages such as FHA loans, USDA loans, and VA loans. With this article, we hope to help you choose the right mortgage for your prospective home.

What are Conventional Loans?

Conventional loans are mortgages that are not federally backed by the government. They make up around two-thirds of mortgages used by homebuyers in America. Conventional loans are provided by private lenders such as banks, non-bank mortgage companies, and credit unions. And in other instances, some conventional loans may be offered by two main government-sponsored enterprises, Freddie Mac and Fannie Mae.

Homebuyers looking to secure a conventional loan must have a good credit score. You must save adequate funds to cover monthly mortgage payments. If your downpayment is less than 20 percent of the home’s value, you must factor in private mortgage insurance (PMI) in your expenses. Conventional loans are commonly offered in 15 and 30-year fixed rate loans. But borrowers can also take 10-year, 20-year, and 25-year terms. They are also available in adjustable-rate options.

 

Two Kinds of Conventional Loans

Conventional loans are classified into two types: conforming conventional loans and non-conforming conventional loans.

Conforming Conventional Loans

Conforming conventional loans adhere to conforming limits set by the Federal Housing Finance Agency (FHFA). This is the prescribed cap on loan amounts you can borrow for conforming loans. Conforming limits may be lower or higher, depending on the location of the house. In general, residences situated in coastal areas and major cities have higher conforming limits.

Why are conforming limits required? According to the 2008 Housing and Economic Recovery Act (HERA) conforming limits must be adjusted annually to accurately show changes in average house prices.

To give you a better idea, let’s say the conforming limit for a 2-unit house in your area is $702,000. If you took a mortgage at $500,000 for a 2-unit home, it is considered a conforming loan. However, if you exceed the $702,000 loan limit, your mortgage will classified as a non-conforming conventional loan.

Prescribed Conforming Limits

For 2021, the FHFA set conforming limits for single-unit homes in the U.S. continental baseline at $548,250. As for areas where house prices are expensive, the ceiling is at 150 percent. This means the conforming limit for single-unit homes in high-cost areas is $822,375.

The U.S. continental baseline loan limit applies to the following areas: Arkansas, Arizona, Alabama, Delaware, Georgia, Iowa, Illinois, Indiana, Louisiana, Maine, Michigan, Missouri, Minnesota, Mississippi, Montana, New Mexico, North Dakota, South Dakota, Vermont, Wisconsin, and majority of locations in the continental United States.

High-cost areas are houses in major metropolitan locations and coastal states. These places are designated HERA high-cost areas. Other states such as Guam, Alaska, Hawaii, and the U.S. Virgin Islands are also assigned high-cost conforming limits.

For a detailed list of conforming limits for 2-unit, 3-unit, and 4-unit houses, refer to this table:

Area 1-unit home 2-unit home 3-unit home 4-unit home
Continental U.S. Baseline $548,250 $702,000 $848,500 $1,054,500
Designiated High-cost Areas $822,375 $1,053,000 $1,272,750 $1,581,750
Alaska, Hawaii, Guam & U.S. Virgin Islands $822,375 $1,053,000 $1,272,750 $1,581,750

Data from the FHFA website

Non-Conforming Conventional Loans

Also called jumbo mortgages, non-conforming conventional loans exceed the conforming limits set by the FHFA. These loans surpass the financing limits followed by Freddie Mac and Fannie Mae. Jumbo mortgages are commonly obtained to purchase luxury houses in high-cost locations. These loans are provided by private lenders such as banks, credit unions, and non-bank mortgage institutions.

For instance, let’s say the conforming limit for a 2-unit home in your area is $653,550. If you take a $800,000 mortgage, this is considered a jumbo loan. Lenders require a much higher credit score to secure a jumbo mortgage. They also employ stricter background checks on borrowers before approving loans.

Conventional Loan Terms and Payment Structure

Couple meeting a real estate agent.

Many borrowers frequently take conforming conventional loans with 15 or 30-year fixed-rate terms. Lenders also offer them in 10-year, 20-year, and 25-year payment terms.

A longer term allows buyers to obtain a larger loan amount, which they might not afford with a shorter payment term. Meanwhile, 15-year fixed mortgages have higher monthly payments but come with lower interest rates compared to 30-year terms. For this reason, when they can afford it, homeowners refinance their 30-year mortgage into a 15-year loan when index rates are lower. This shortens their payment duration and helps them save thousands on interest costs.

Fixed-Rate vs. Adjustable Rate Mortgages (ARM)

Fixed-rated mortgages come with a locked interest rate for the entire life of the loan. This means your monthly payments will also remain the same. For example, if you took a 30-year fixed-rate loan, your payments will not change for the next 30 years. This is regardless of whether index rates rise or fall. As long as you make consistent payments, your debt should be paid off within 30 years.

On the other hand, adjustable-rate mortgages are loan options with an introductory rate. It starts off with a low interest rate during the introductory period, after which the rates adjusts every year according to the market index. ARMs come in different terms, such as 3/1 ARM, 5/1 ARM, 7/1 ARM, and 10/1 ARM.

 

For example, if you take a 5/1 ARM, you’ll pay a fixed rate for 5 years. Once the 5 years is through, it resets annually. This means your monthly payment may either increase or decrease, depending on the market index. If you choose an ARM, you must prepare for increasing payments. But if rates are low, you can take advantage of the savings.

ARM loans are risky to borrowers that are vulnerable to unfavorable market conditions. That said, ARMs are more appropriate for people with high income and reliable sources of funds. ARMs can work for you if you have the financial capability to make above average payments, and if you believe you can sell a house before rates reset again. When rates are low, this payment structure can help you save income on lower interest charges.

The following table indicates national average conforming conventional rates for July 16, 2020:

Type of LoanInterest RateFees and PointsMargin
Conventional 30-Year FRM2.98%0.7N/A
Conventional 15-Year FRM2.48%0.7N/A
Conventional 5/1 ARM3.06%0.32.75%

Data from Freddie Mac PMMS

What Determines Your Loan’s Interest Rate?

Mortgage interest rates are dependent on many factors. It considers the size of your loan, the downpayment amount, and the length of the payment term. Your credit score, which measures your ability to repay a loan, helps lenders assign a fair interest rate. Likewise, choosing a fixed-rate or adjustable rate mortgage also determines whether your rate will be higher or lower.

When Interest Rates are High

In general, a longer term duration imposes higher interest rates. Fixed-rate loans, in particular, typically offer slightly higher rates compared to adjustable rate mortgages.

How to be Eligible for a Conventional Loan

Couple with approved mortgage contract.

If you have a good credit history and saved enough downpayment, you can qualify for a conventional loan. But there are reasons why some borrowers don’t get approved on their first try. You must satisfy the following requirements to secure a conventional mortgage:

Credit score

Conventional loan providers usually approve a FICO credit score of 680. But ideally, you should aim for a score of 700.

Lenders evaluate your ability to pay back your loan. This is based on your credit report, which details your entire debt and payment history. If don’t have a solid credit background, you might not be approved for a loan. Applicants with scores at 650 and below also have a hard time securing conventional loans. In some cases, low scores may be approved. However, these loans get much higher rates.

Applicants with low credit impose higher risk to lenders. They have greater chances of defaulting on a loan, especially during economic down times. For this reason, lenders offer them higher rates. On the other hand, a high score gives you access to more competitive rates.

Credit Score Classifications

The most common type of credit rating system is FICO (Fair Isaac Corporation). It is used by around 90 percent of lenders in the the U.S. Another credit rating system used by lending companies is VantageScore. While they have their differences, both credit rating systems have a score range of 300 to 850.

A Good FICO rating includes scores between 670-739. Meanwhile, a Good VantageScore rating ranges between 661-780. Again, a higher credit score helps secure a lower conventional loan rate.

You may refer to the following credit classification tables below.

FICORange% of US PopulationImpact
Exceptional800 – 85021%Borrowers who get the best available rates
Very Good740 – 79925%Borrowers who obtain better than average rates
Good670 – 73921%Those who are likely to be approved
8% have the probability to be delinquent
Fair580 – 69917%Considered “subprime” borrowers
Pay a higher rate to offset the increased risk
Very Poor300-57916%Usually not approved for credit
VantageScoreRange% of US PopulationImpact
Excellent781 – 85023%Borrowers who get the best available rates
Good661 – 78038%Likely to be approved and offered competitive rates
Fair601 – 66013%May be approved but not with competitive rates
Poor500 – 60021%May be approved but with higher rates
Very Poor300 – 4995%Usually not approved for credit

Data from Experian

Check Your Credit Report

Check your credit report before applying for a mortgage. This way you’ll know beforehand if you’re eligible for a conventional loan. Make sure to review any inaccurate payment records on your report. If so, you can dispute errors to your credit bureau. Correcting information can also help raise your credit score. Borrowers can get a free copy of their credit report every 12 months. You can request one online at annualcreditreport.com.

Debt-to-income (DTI) Ratio

Another important lending criteria is debt-to-income (DTI) ratio. DTI ratio is a percentage that compares your debts to the amount of your monthly earnings. A higher DTI ratio means your debt takes a considerable portion of your income. This spells risk for lenders. Likewise, a low DTI ratio means better chances of securing a conventional loan.

Mortgage providers assess two main types of DTI ratios:

  • Front-end DTI – The percentage of your income that goes toward paying mortgage-related debts. It includes insurance, property taxes, monthly mortgages payments, homeowner’s association fees, etc.
  • Back-end DTI - The percentage of your income that goes toward paying mortgage-related debts along with all other debts, such as credit card payments, car loans, student loans, etc.

Back-end DTI ratio is estimated by adding mortgage-related debts and all monthly debt payments. Then, it’s divided by your gross monthly income. The resulting quotient is the DTI ratio.

For conventional loans, your front-end DTI should not exceed 28 percent. Your back-end DTI, on the other hand, must not be higher than 43 percent. Ideally, you should aim for a low back-end DTI ratio of 36 percent. If you have a student loan, a lender may allow up to 50 percent.

Avoid Bankruptcy and Foreclosure

Applicants with a history of bankruptcy and foreclosure have a hard time getting approved for conventional loans. This is indicates you’ve had trouble making debt payments in the past. Lenders check your history as far back as 7 years. It pays to maintain good credit records for your future financing needs.

Downpayment

Make timely piggy bank savings.

Next, you must gather enough downpayment to secure your mortgage. Compared to government-sponsored loans, a conventional mortgage often requires a more sizeable downpayment amount.

On average, the downpayment for conventional loans is usually 10 percent of the home’s price. But ideally, borrowers are encouraged to make a 20 percent downpayment to avoid the cost of private mortgage insurance.

Private Mortgage Insurance (PMI)

Borrowers who take conventional loans must pay private mortgage insurance if their downpayment is less than 20 percent of the home’s price. This cost is often rolled into your monthly mortgage payments. PMI accounts for 0.5 percent to 1 percent of your loan amount per year. However, PMI is not paid for the entire life of the loan.

Lenders must automatically remove PMI once your mortgage balance reaches 78 percent of the home’s value. It’s also canceled if you’ve paid half of your amortization schedule.

 

Closing Costs

On average, the closing cost for a conventional loan falls between 3 percent to 6 percent of the home’s value. This includes upfront costs such as underwriting fees, broker fees, and loan origination fees.

For example, if you buy a house worth $450,000, the closing cost can be anywhere between $13,500 to $27,000. It can get expensive, so it’s best to prepare more funds. It pays to find a home and mortgage deal you can afford.

Required Documents

When you apply for a conventional loan, expect lenders to make background checks on your credit history and income. To make sure you have low default risk, lenders carefully review your assets and liabilities. They may also call your employer to verify if you’re still employed. Lenders also check if you declared the right salary. For self-employed applicants, you’ll need to provide additional documents as requested.

Before a lender can perform any assessment, you must submit the following paperwork:

  • 2 years of Federal Tax Returns
  • 30 days of Paystubs, year-to-date income
  • 2 years of W-2 forms, shows income earned
  • Quarterly bank statements – savings account, checking accounts, investment accounts, etc.
  • Proof of added income such as bonuses or alimony

Conventional loan providers ask for cash reserves. These may come in the form of savings accounts, checking accounts, and investment accounts. They even consider retirement funds as cash reserves.

Cash gifts can also be used as cash reserves. To make a cash gift eligible, the donor must enclose a notarized letter which states the money is a gift, not a debt that should be repaid.

The following table provides a detailed summary of conventional loan requirements:

RequirementsConforming Conventional Loans
Conforming loan limitFollows the federal conforming loan limits in an area
Credit scoreIdea credit score is 700
Lenders typically approve 680
RatesA higher credit score means a lower rate
A low credit score means a higher rate
A low downpayment means a higher rate
Front-end DTIShould not exceed 28%
Back-end DTIShould ideally be 36%
Must not exceed 43%
Up to 50% if you have a student loan
Downpayment10% – average downpayment
20% downpayment removes PMI requirement
3% – minimum requirement for a 97-3 loan
CostPMI is 0.5%-1% of the loan amount per year
PMI is canceled once your mortgage balance reaches 78%
Average closing cost is 3%-5% of the home’s price

Comparing Conventional Loans to Other Mortgage Options

Conventional loans are appropriate for homebuyers with high credit scores and a stable income stream. That said, it may be harder for other applicants to qualify for a conventional loan.

However, the good news is there are other financing options out there that’s worth exploring. These are especially helpful if you have limited savings and a low credit score. Conversely, there are financing options for consumers who need much larger loans.

Now let’s review how conventional loans differ from government-backed loans below:

FHA Loans

Family bonding outside of their house.

The Federal Housing Administration (FHA) offers affordable home financing for families. You can get an FHA loan with a credit score of 580. If your credit score is between 500 to 579, you must make a 10 percent downpayment to secure the loan.

FHA mortgages usually come in 15 and 30-year fixed rate terms. This option is appropriate for first-time homebuyers with less than perfect credit scores. You can qualify for an FHA loan if you can make a small downpayment (3.5 percent of the home’s value). But to compensate for the low downpayment, FHA loans require a mortgage insurance premium.

Mortgage Insurance Premium (MIP)

Borrowers are required to pay a mortgage insurance premium when they obtain an FHA loan. This premium is paid both as an upfront fee and an annual insurance rolled into your monthly payments. MIP must be paid for the entire life of the loan. It’s required regardless of your loan-to-value ratio.

The upfront mortgage insurance premium (UFMPI) is 1.75 percent of the loan amount. On the other hand, the annual MIP rate is usually 0.85 percent of the loan amount. MIP is used to cover your mortgage payments in case you default on your loan.

 

In the beginning, FHA loans are affordable for homebuyers. However, it becomes more expensive the longer you pay the loan. This is largely due to the MIP charges. Because of this, other borrowers choose to refinance their FHA loan into a conventional loan. This eliminates the PMI requirement and helps them secure a lower rate. In most cases, homeowners who refinance also take shorter terms.

Mortgage Refinancing

Refinancing is taking a new loan to replace an existing mortgage. This allows homeowners to lower the interest rate and shorten the loan term. To qualify for refinancing, your credit score must be at least 620. Refinancing is also expensive, costing around 2%-6% of your loan. To compensate for this cost, experts traditionally advise refinancing when market rates are 2 percentage points lower.

FHA loans have a higher DTI ratio requirement compared to conventional loans. The front-end DTI is 31 percent, while the back end DTI is 43 percent. FHA rates are also lower compared to some conventional loans. But if your credit score is high, you can secure a conventional loan with a lower rate. You may save more with a conventional loan that does not require lifetime MIP charges.

The following table highlights differences between conventional loans and FHA loans:

RequirementsConventional LoansFHA Loans
Credit scoreIdea credit score is 700
Lenders typically approve 680
Ideal credit score is 580
Minimum 500 (with 10% downpayment)
RatesA higher credit score means a lower rate
A low credit score means a higher rate
A low downpayment means a higher rate
Low rates at the start if you have a low credit score
Rates become higher through the years as you build home equity
Front-end DTINo higher than 28%No higher than 31%
Back-end DTIShould ideally be 36%
Must not be higher than 43%
Up to 50% if you have a student loan
Must not be higher than 43%
Up to 50% with compensating factors
Downpayment10% – average downpayment
20% downpayment removes PMI requirement
3% – minimum requirement for a 97-3 loan
Over 580 credit score – downpayment can be 3.5%
Under 580 credit score – downpayment must be 10%
CostPMI is 0.5%-1% of the loan amount per year
PMI is canceled once your mortgage balance reaches 78%
Average closing cost is 3%-5% of the home’s price
Upfront MIP payment is 1.75% of the loan amount
The annual MIP cost is 0.45%-1.05% of the loan amount
MIP is paid throughout the entire loan

USDA Loans

Beautiful suburban home near a lake.

The U.S. Department of Agriculture provides home financing for low to moderate income families. It comes with a zero downpayment option that allows you to qualify with a minimum credit score of 640. This home loan requires buyers to purchase primary residences located in USDA rural areas. USDA loans also commonly come in 15 and 30-year fixed-rate terms.

When people think of USDA-approved locations, they picture houses in isolated fields with neighbors a mile away. But more often, USDA locations are actually suburban communities. Around 97 percent of U.S. land is qualified for USDA financing. Think about this option before crossing it off your list.

The USDA program was established to aid economic growth in areas with relatively low populations. Hence, the government encourages people to live outside concentrated cities and busy metropolitan areas.

USDA Guarantee Fee

Just like FHA loans, USDA loans require a mortgage insurance premium called a guarantee fee. This compensates for the zero downpayment. It’s paid both as an upfront closing fee and as an annual guarantee fee included in your monthly payments.

The upfront guarantee fee is 1% of the loan amount, while the annual guarantee fee is 0.35% of the outstanding principal balance. The annual fee is also paid for the entire loan term. But instead of getting more costly, it gets lower every year as you reduce your principal balance.

 

When it comes to DTI ratio, the USDA requires front-end DTI at 29 percent. For back-end DTI, it should not exceed 41 percent. This is quite similar to DTI limits required for conventional loans. Again, this helps assure the lender that you have enough income to repay your debt.

As for interest rates, if your credit score is low, you’re assigned a higher rate. But generally, because of government-backing, USDA loans offer low rates compared to conventional loans. For borrowers with a good credit score, you may save more if you take a conventional loan. Unlike USDA loans with a lifetime guarantee fee, PMI in conventional loans is removed once your mortgage balance reaches 78 percent of the home’s value.

USDA Household Income Limits

Applicants must meet the required income limits to secure a USDA loan. As a rule, your combined household income (including all adults in the home) should not exceed more than 115% of the median family income in your area. You can check the prescribed income limits in your area by visiting this USDA map.

The table below compares the key differences between conventional loans and USDA loans:

RequirementsConventional LoansUSDA Loans
AreaAny location, no area restrictionsMust be a USDA-approved area
Income limitNo set income limitsHousehold income cannot be 115% of the local median income for your area
Credit scoreIdea credit score is 700
Lenders typically approve 680
Minimum of 640
RatesA higher credit score means a lower rate
A low credit score means a higher rate
A low downpayment means a higher rate
Significantly lower rates due to federal backing
Front-end DTINo higher than 28%No higher than 29%
Back-end DTIShould ideally be 36%
Must not be higher than 43%
Up to 50% if you have a student loan
Must not be higher than 41%
Downpayment10% – average downpayment
20% downpayment removes PMI requirement
3% – minimum requirement for a 97-3 loan
Downpayment is not required
CostPMI is 0.5%-1% of the loan amount per year
PMI is canceled once your mortgage balance reaches 78%
Average closing cost is 3%-5% of the home’s price
Requires 1% upfront guarantee fee
Requires 0.35% annual mortgage insurance fee
No prepayment penalty

VA Loans

Military veteran arriving back home.

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs. These loans are specifically granted to active military members, veterans, and qualified military spouses. It comes with flexible qualifying standards and a zero downpayment option. Active-duty members and veterans can qualify with a credit score of 620. Due to government sponsorship, VA loan rates are usually lower than conventional loan rates.

Many service members struggle with building credit after returning from service. To support them, the U.S. Department of Veterans Affairs provides relaxed credit qualifying to help them secure a home. And unlike other government-backed loans, you’re not required to pay MIP. However, you are charged a VA funding fee.

VA Funding Fee

The VA funding fee offsets the cost of the loan for American tax payers. It’s the compensation you make for offering a low downpayment or none at all. The funding ranges between 1.4% to 3.6% of your loan’s value. Then, the percentage is added on top of your principal balance. Thus, it increases your monthly payment and interest charges.

The VA funding fee rate varies per borrower. This depends on the size of your loan and if you make a downpayment. It also factors in the type of VA loan you take and if you’ve used your VA benefit before. Once you’ve used your VA benefit, the VA funding fee rate increases the next time you apply for a loan. For a list of VA funding fee rates, visit the U.S. Department of Veterans Affairs funding fee and closing costs page.

 

As for DTI ratio requirements, the primary basis is the back-end DTI. Your back-end DTI must not go over 41 percent. But this can be higher if you have residual income.

VA loans offer flexibility to service members. A borrower can have 2 VA loans at the same time. They can even apply for a new VA loan despite defaulting on a loan from years back. Qualified borrowers are also allowed to refinance to a lower rate, or shift to an adjustable rate mortgage or fixed-rate loan. This is done through the VA streamlined interest rate reduction refinancing program (IRRL).

There are no loan caps to the amount you can borrow. You can secure any amount as long as it’s approved by your lender. However, the VA sets liability limits for borrowers, which means they may only guarantee a certain amount. Liability limits may affect how much your lender is willing to approve for your mortgage.

Reduce Your VA Funding Fee Rate

Taking the time to gather downpayment funds will help you save. You can reduce the VA funding fee rate by making a 5 percent downpayment. And if you aim for a 10 percent 10 downpayment, even better.

The following table shows the differences between a conventional loan and a VA loan.

RequirementsConventional LoansVA Loans
Credit ScoreIdea credit score is 700
Lenders typically approve 680
At least 620
Flexible with credit scores
RatesA higher credit score means a lower rate
A low credit score means a higher rate
A low downpayment means a higher rate
With federal backing, VA loans have lower rates compared to conventional loans
Front-end DTINo higher than 28%The primary basis is the back-end DTI
Back-end DTIShould ideally be 36%
Must not be higher than 43%
Up to 50% if you have a student loan
Should ideally be 41%
DTI can be higher if you have residual income
Downpayment10% – average downpayment
20% downpayment removes PMI requirement
3% – minimum requirement for a 97-3 loan
No downpayment required
Making a 5% downpayment reduces the VA funding fee
CostPMI is 0.5%-1% of the loan amount per year
PMI is canceled once your mortgage balance reaches 78%
Average closing cost is 3%-5% of the home’s price
No private mortgage insurance
Requires VA Funding Fee – ranges between 1.4% and 3.6% of the loan amount

Jumbo Mortgage

Beautiful modern house with garden.

Apart from government-sponsored loans, borrowers also have the option to take jumbo mortgages. This is useful if you need particularly large financing to purchase expensive property. As previously mentioned, jumbo mortgages are non-conforming loans that exceed the federal loan limits prescribed by the FHFA. These are offered by private lenders such as banks, non-bank mortgage companies, and credit unions.

Jumbo loans are used to secure luxury homes and houses in high-cost areas. This type of financing is appropriate for high-income buyers with exceptional credit scores of 700 and above. Some lenders may even require a minimum credit score of 720. They conduct stricter investigation of creditworthiness before approving a jumbo loan. This may also include additional documentation, which takes the mortgage longer to approve.

When it comes to interest rates, jumbo mortgages usually have higher rates than conventional loans. This can be 1 to 2 percentage points higher. But depending on market conditions, lenders may offer competitive rates similar to conventional loans to encourage sales.

For the required DTI ratios, jumbo mortgages are the same with conforming loans. They both need a front-end DTI ratio of 28 percent, and a back-end DTI ratio of 43 percent. But to be safe, back-end DTI should be lower at 36 percent.

High Downpayment, No PMI

As for the downpayment, most lenders require 20 percent of the home’s value. But others may demand up to 30 percent. This is considerably higher compared to conforming conventional loans, with an average downpayment of 10 percent.

Because jumbo loans require a large downpayments, they usually do not require private mortgage insurance (PMI). Unless you make a downpayment less than 20 percent, that’s the only time you need to pay PMI.

 

Since jumbo mortgages offer much larger loans, anticipate the closing costs to be higher compared to conforming loans. Make sure you have large savings to shoulder 3 to 6 percent of the home’s total value.

The following table details the differences between conventional loans and jumbo mortgages:

RequirementsConforming Conventional LoansJumbo Mortgages
Conforming loan limitFollows federal conforming loan limit in an areaExceeds federal conforming limits in an area
Credit scoreIdea credit score is 700
Lenders typically approve 680
700 is usually approved
Some lenders require 720
RatesA higher credit score means a lower rate
A low credit score means a higher rate
A low downpayment means a higher rate
Rates may be higher by 1%-2% compared to conforming conventional loans
Low credit score means a higher rate
Low downpayment means a higher rate
Front-end DTINo higher than 28%No higher than 28%
Back-end DTIShould ideally be 36%
Must not be higher than 43%
Up to 50% if you have a student loan
Should ideally be 36%
Must not be higher than 43%
Some may allow a higher DTI if you make a large downpayment
Downpayment10% – average downpayment
20% downpayment removes PMI requirement
3% – minimum requirement for a 97-3 loan
Most lenders require 20% downpayment
Depends on the lender, others may require 30%
CostPMI is 0.5%-1% of the loan amount per year
PMI is canceled once your mortgage balance reaches 78%
Average closing cost is 3%-5% of the home’s price
Often does not require PMI payments due to the high downpayment
Closing cost is typically between 3%-6% of the home’s value – higher than conforming loans

Managing Your Mortgage Payments

Timely pay your mortgages.

Now that you know your mortgage options, the next step is to stay on top of your monthly payments. When borrowers get conventional loans, they usually take 30-year fixed-rate terms. The longer term helps them afford lower monthly payments compared to 15 or 20-year loans. And once you decide on a 30-year term, it means making payments for three decades. This is a very long time, so make sure you can sustain payments even after retirement.

One way to keep track of your payments is by checking your amortization schedule. An amortization schedule indicates the number of payments you should make to pay off your mortgage. It breaks down how much of your payment is applied to the loan’s principal and interest.

  • Principal – The amount you owe the lender. Also referred to as the outstanding balance, which shows how much you still need to repay. The larger the principal, the higher interest accrues.
  • Interest – This is the payment lenders charge for servicing your loan. Interest rates get higher the longer you take to pay back a loan.

With a fixed-rate loan, a larger portion of your payment goes toward the interest during the first several years of a loan. This means your principal balance is reduced at a slow rate. But towards the latter years of the loan, a greater part of your payments go toward the principal. Meanwhile, the interest costs decreases. As long as you keep making payments, your mortgage should be paid within 30 years.

Can you reduce interest charges? Yes. You can save on interest charges by making extra payments. Ask your lender to apply the added payments to your principal. This has the most impact during the early years of the loan.

Extra payments reduce your principal balance faster, which also shortens the loan term. However, ask about prepayment penalty first to avoid costly fess. In some cases, you can prepay a conventional loan up 20 percent before they charge a penalty fee. You can also wait for the penalty period to pass (usually 3 years) before making extra payments.

Check Your PITI Cost

Aside from the principal and interest costs, don’t forget to factor in property taxes and mortgage insurance. Taken collectively, this is known as the PITI cost – Principal, Interest, Taxes, Insurance. Estimating PITI determines the total amount you need for monthly mortgage payments.

Need to generate an amortization schedule for a 30 year fixed-rate conventional loan? Use our calculator above.

The following table shows the amortization on a 30-year $250,000 home loan at 4.8% APR for a loan that begins next year. On this example loan, payments being on August 31, 2022 for a loan originated on July 31, 2022.

You can generate a similar printable table using the above calculator by clicking on the [Create Amortization Schedule] button.

PMNT Date Payment Principal Interest Balance
1 8/31/2022 $1,311.66 $311.66 $1,000.00 $249,688.34
2 9/30/2022 $1,311.66 $312.91 $998.75 $249,375.43
3 10/31/2022 $1,311.66 $314.16 $997.50 $249,061.27
4 11/30/2022 $1,311.66 $315.41 $996.25 $248,745.86
5 12/31/2022 $1,311.66 $316.68 $994.98 $248,429.18
Year 2022 $6,558.30 $1,570.82 $4,987.48 $248,429.18
6 1/31/2023 $1,311.66 $317.94 $993.72 $248,111.24
7 2/28/2023 $1,311.66 $319.22 $992.44 $247,792.02
8 3/31/2023 $1,311.66 $320.49 $991.17 $247,471.53
9 4/30/2023 $1,311.66 $321.77 $989.89 $247,149.76
10 5/31/2023 $1,311.66 $323.06 $988.60 $246,826.70
11 6/30/2023 $1,311.66 $324.35 $987.31 $246,502.35
12 7/31/2023 $1,311.66 $325.65 $986.01 $246,176.70
13 8/31/2023 $1,311.66 $326.95 $984.71 $245,849.75
14 9/30/2023 $1,311.66 $328.26 $983.40 $245,521.49
15 10/31/2023 $1,311.66 $329.57 $982.09 $245,191.92
16 11/30/2023 $1,311.66 $330.89 $980.77 $244,861.03
17 12/31/2023 $1,311.66 $332.22 $979.44 $244,528.81
Year 2023 $15,739.92 $3,900.37 $11,839.55 $244,528.81
18 1/31/2024 $1,311.66 $333.54 $978.12 $244,195.27
19 2/28/2024 $1,311.66 $334.88 $976.78 $243,860.39
20 3/31/2024 $1,311.66 $336.22 $975.44 $243,524.17
21 4/30/2024 $1,311.66 $337.56 $974.10 $243,186.61
22 5/31/2024 $1,311.66 $338.91 $972.75 $242,847.70
23 6/30/2024 $1,311.66 $340.27 $971.39 $242,507.43
24 7/31/2024 $1,311.66 $341.63 $970.03 $242,165.80
25 8/31/2024 $1,311.66 $343.00 $968.66 $241,822.80
26 9/30/2024 $1,311.66 $344.37 $967.29 $241,478.43
27 10/31/2024 $1,311.66 $345.75 $965.91 $241,132.68
28 11/30/2024 $1,311.66 $347.13 $964.53 $240,785.55
29 12/31/2024 $1,311.66 $348.52 $963.14 $240,437.03
Year 2024 $15,739.92 $4,091.78 $11,648.14 $240,437.03
30 1/31/2025 $1,311.66 $349.91 $961.75 $240,087.12
31 2/28/2025 $1,311.66 $351.31 $960.35 $239,735.81
32 3/31/2025 $1,311.66 $352.72 $958.94 $239,383.09
33 4/30/2025 $1,311.66 $354.13 $957.53 $239,028.96
34 5/31/2025 $1,311.66 $355.54 $956.12 $238,673.42
35 6/30/2025 $1,311.66 $356.97 $954.69 $238,316.45
36 7/31/2025 $1,311.66 $358.39 $953.27 $237,958.06
37 8/31/2025 $1,311.66 $359.83 $951.83 $237,598.23
38 9/30/2025 $1,311.66 $361.27 $950.39 $237,236.96
39 10/31/2025 $1,311.66 $362.71 $948.95 $236,874.25
40 11/30/2025 $1,311.66 $364.16 $947.50 $236,510.09
41 12/31/2025 $1,311.66 $365.62 $946.04 $236,144.47
Year 2025 $15,739.92 $4,292.56 $11,447.36 $236,144.47
42 1/31/2026 $1,311.66 $367.08 $944.58 $235,777.39
43 2/28/2026 $1,311.66 $368.55 $943.11 $235,408.84
44 3/31/2026 $1,311.66 $370.02 $941.64 $235,038.82
45 4/30/2026 $1,311.66 $371.50 $940.16 $234,667.32
46 5/31/2026 $1,311.66 $372.99 $938.67 $234,294.33
47 6/30/2026 $1,311.66 $374.48 $937.18 $233,919.85
48 7/31/2026 $1,311.66 $375.98 $935.68 $233,543.87
49 8/31/2026 $1,311.66 $377.48 $934.18 $233,166.39
50 9/30/2026 $1,311.66 $378.99 $932.67 $232,787.40
51 10/31/2026 $1,311.66 $380.51 $931.15 $232,406.89
52 11/30/2026 $1,311.66 $382.03 $929.63 $232,024.86
53 12/31/2026 $1,311.66 $383.56 $928.10 $231,641.30
Year 2026 $15,739.92 $4,503.17 $11,236.75 $231,641.30
54 1/31/2027 $1,311.66 $385.09 $926.57 $231,256.21
55 2/28/2027 $1,311.66 $386.64 $925.02 $230,869.57
56 3/31/2027 $1,311.66 $388.18 $923.48 $230,481.39
57 4/30/2027 $1,311.66 $389.73 $921.93 $230,091.66
58 5/31/2027 $1,311.66 $391.29 $920.37 $229,700.37
59 6/30/2027 $1,311.66 $392.86 $918.80 $229,307.51
60 7/31/2027 $1,311.66 $394.43 $917.23 $228,913.08
61 8/31/2027 $1,311.66 $396.01 $915.65 $228,517.07
62 9/30/2027 $1,311.66 $397.59 $914.07 $228,119.48
63 10/31/2027 $1,311.66 $399.18 $912.48 $227,720.30
64 11/30/2027 $1,311.66 $400.78 $910.88 $227,319.52
65 12/31/2027 $1,311.66 $402.38 $909.28 $226,917.14
Year 2027 $15,739.92 $4,724.16 $11,015.76 $226,917.14
66 1/31/2028 $1,311.66 $403.99 $907.67 $226,513.15
67 2/28/2028 $1,311.66 $405.61 $906.05 $226,107.54
68 3/31/2028 $1,311.66 $407.23 $904.43 $225,700.31
69 4/30/2028 $1,311.66 $408.86 $902.80 $225,291.45
70 5/31/2028 $1,311.66 $410.49 $901.17 $224,880.96
71 6/30/2028 $1,311.66 $412.14 $899.52 $224,468.82
72 7/31/2028 $1,311.66 $413.78 $897.88 $224,055.04
73 8/31/2028 $1,311.66 $415.44 $896.22 $223,639.60
74 9/30/2028 $1,311.66 $417.10 $894.56 $223,222.50
75 10/31/2028 $1,311.66 $418.77 $892.89 $222,803.73
76 11/30/2028 $1,311.66 $420.45 $891.21 $222,383.28
77 12/31/2028 $1,311.66 $422.13 $889.53 $221,961.15
Year 2028 $15,739.92 $4,955.99 $10,783.93 $221,961.15
78 1/31/2029 $1,311.66 $423.82 $887.84 $221,537.33
79 2/28/2029 $1,311.66 $425.51 $886.15 $221,111.82
80 3/31/2029 $1,311.66 $427.21 $884.45 $220,684.61
81 4/30/2029 $1,311.66 $428.92 $882.74 $220,255.69
82 5/31/2029 $1,311.66 $430.64 $881.02 $219,825.05
83 6/30/2029 $1,311.66 $432.36 $879.30 $219,392.69
84 7/31/2029 $1,311.66 $434.09 $877.57 $218,958.60
85 8/31/2029 $1,311.66 $435.83 $875.83 $218,522.77
86 9/30/2029 $1,311.66 $437.57 $874.09 $218,085.20
87 10/31/2029 $1,311.66 $439.32 $872.34 $217,645.88
88 11/30/2029 $1,311.66 $441.08 $870.58 $217,204.80
89 12/31/2029 $1,311.66 $442.84 $868.82 $216,761.96
Year 2029 $15,739.92 $5,199.19 $10,540.73 $216,761.96
90 1/31/2030 $1,311.66 $444.61 $867.05 $216,317.35
91 2/28/2030 $1,311.66 $446.39 $865.27 $215,870.96
92 3/31/2030 $1,311.66 $448.18 $863.48 $215,422.78
93 4/30/2030 $1,311.66 $449.97 $861.69 $214,972.81
94 5/31/2030 $1,311.66 $451.77 $859.89 $214,521.04
95 6/30/2030 $1,311.66 $453.58 $858.08 $214,067.46
96 7/31/2030 $1,311.66 $455.39 $856.27 $213,612.07
97 8/31/2030 $1,311.66 $457.21 $854.45 $213,154.86
98 9/30/2030 $1,311.66 $459.04 $852.62 $212,695.82
99 10/31/2030 $1,311.66 $460.88 $850.78 $212,234.94
100 11/30/2030 $1,311.66 $462.72 $848.94 $211,772.22
101 12/31/2030 $1,311.66 $464.57 $847.09 $211,307.65
Year 2030 $15,739.92 $5,454.31 $10,285.61 $211,307.65
102 1/31/2031 $1,311.66 $466.43 $845.23 $210,841.22
103 2/28/2031 $1,311.66 $468.30 $843.36 $210,372.92
104 3/31/2031 $1,311.66 $470.17 $841.49 $209,902.75
105 4/30/2031 $1,311.66 $472.05 $839.61 $209,430.70
106 5/31/2031 $1,311.66 $473.94 $837.72 $208,956.76
107 6/30/2031 $1,311.66 $475.83 $835.83 $208,480.93
108 7/31/2031 $1,311.66 $477.74 $833.92 $208,003.19
109 8/31/2031 $1,311.66 $479.65 $832.01 $207,523.54
110 9/30/2031 $1,311.66 $481.57 $830.09 $207,041.97
111 10/31/2031 $1,311.66 $483.49 $828.17 $206,558.48
112 11/30/2031 $1,311.66 $485.43 $826.23 $206,073.05
113 12/31/2031 $1,311.66 $487.37 $824.29 $205,585.68
Year 2031 $15,739.92 $5,721.97 $10,017.95 $205,585.68
114 1/31/2032 $1,311.66 $489.32 $822.34 $205,096.36
115 2/28/2032 $1,311.66 $491.27 $820.39 $204,605.09
116 3/31/2032 $1,311.66 $493.24 $818.42 $204,111.85
117 4/30/2032 $1,311.66 $495.21 $816.45 $203,616.64
118 5/31/2032 $1,311.66 $497.19 $814.47 $203,119.45
119 6/30/2032 $1,311.66 $499.18 $812.48 $202,620.27
120 7/31/2032 $1,311.66 $501.18 $810.48 $202,119.09
121 8/31/2032 $1,311.66 $503.18 $808.48 $201,615.91
122 9/30/2032 $1,311.66 $505.20 $806.46 $201,110.71
123 10/31/2032 $1,311.66 $507.22 $804.44 $200,603.49
124 11/30/2032 $1,311.66 $509.25 $802.41 $200,094.24
125 12/31/2032 $1,311.66 $511.28 $800.38 $199,582.96
Year 2032 $15,739.92 $6,002.72 $9,737.20 $199,582.96
126 1/31/2033 $1,311.66 $513.33 $798.33 $199,069.63
127 2/28/2033 $1,311.66 $515.38 $796.28 $198,554.25
128 3/31/2033 $1,311.66 $517.44 $794.22 $198,036.81
129 4/30/2033 $1,311.66 $519.51 $792.15 $197,517.30
130 5/31/2033 $1,311.66 $521.59 $790.07 $196,995.71
131 6/30/2033 $1,311.66 $523.68 $787.98 $196,472.03
132 7/31/2033 $1,311.66 $525.77 $785.89 $195,946.26
133 8/31/2033 $1,311.66 $527.87 $783.79 $195,418.39
134 9/30/2033 $1,311.66 $529.99 $781.67 $194,888.40
135 10/31/2033 $1,311.66 $532.11 $779.55 $194,356.29
136 11/30/2033 $1,311.66 $534.23 $777.43 $193,822.06
137 12/31/2033 $1,311.66 $536.37 $775.29 $193,285.69
Year 2033 $15,739.92 $6,297.27 $9,442.65 $193,285.69
138 1/31/2034 $1,311.66 $538.52 $773.14 $192,747.17
139 2/28/2034 $1,311.66 $540.67 $770.99 $192,206.50
140 3/31/2034 $1,311.66 $542.83 $768.83 $191,663.67
141 4/30/2034 $1,311.66 $545.01 $766.65 $191,118.66
142 5/31/2034 $1,311.66 $547.19 $764.47 $190,571.47
143 6/30/2034 $1,311.66 $549.37 $762.29 $190,022.10
144 7/31/2034 $1,311.66 $551.57 $760.09 $189,470.53
145 8/31/2034 $1,311.66 $553.78 $757.88 $188,916.75
146 9/30/2034 $1,311.66 $555.99 $755.67 $188,360.76
147 10/31/2034 $1,311.66 $558.22 $753.44 $187,802.54
148 11/30/2034 $1,311.66 $560.45 $751.21 $187,242.09
149 12/31/2034 $1,311.66 $562.69 $748.97 $186,679.40
Year 2034 $15,739.92 $6,606.29 $9,133.63 $186,679.40
150 1/31/2035 $1,311.66 $564.94 $746.72 $186,114.46
151 2/28/2035 $1,311.66 $567.20 $744.46 $185,547.26
152 3/31/2035 $1,311.66 $569.47 $742.19 $184,977.79
153 4/30/2035 $1,311.66 $571.75 $739.91 $184,406.04
154 5/31/2035 $1,311.66 $574.04 $737.62 $183,832.00
155 6/30/2035 $1,311.66 $576.33 $735.33 $183,255.67
156 7/31/2035 $1,311.66 $578.64 $733.02 $182,677.03
157 8/31/2035 $1,311.66 $580.95 $730.71 $182,096.08
158 9/30/2035 $1,311.66 $583.28 $728.38 $181,512.80
159 10/31/2035 $1,311.66 $585.61 $726.05 $180,927.19
160 11/30/2035 $1,311.66 $587.95 $723.71 $180,339.24
161 12/31/2035 $1,311.66 $590.30 $721.36 $179,748.94
Year 2035 $15,739.92 $6,930.46 $8,809.46 $179,748.94
162 1/31/2036 $1,311.66 $592.66 $719.00 $179,156.28
163 2/28/2036 $1,311.66 $595.03 $716.63 $178,561.25
164 3/31/2036 $1,311.66 $597.41 $714.25 $177,963.84
165 4/30/2036 $1,311.66 $599.80 $711.86 $177,364.04
166 5/31/2036 $1,311.66 $602.20 $709.46 $176,761.84
167 6/30/2036 $1,311.66 $604.61 $707.05 $176,157.23
168 7/31/2036 $1,311.66 $607.03 $704.63 $175,550.20
169 8/31/2036 $1,311.66 $609.46 $702.20 $174,940.74
170 9/30/2036 $1,311.66 $611.90 $699.76 $174,328.84
171 10/31/2036 $1,311.66 $614.34 $697.32 $173,714.50
172 11/30/2036 $1,311.66 $616.80 $694.86 $173,097.70
173 12/31/2036 $1,311.66 $619.27 $692.39 $172,478.43
Year 2036 $15,739.92 $7,270.51 $8,469.41 $172,478.43
174 1/31/2037 $1,311.66 $621.75 $689.91 $171,856.68
175 2/28/2037 $1,311.66 $624.23 $687.43 $171,232.45
176 3/31/2037 $1,311.66 $626.73 $684.93 $170,605.72
177 4/30/2037 $1,311.66 $629.24 $682.42 $169,976.48
178 5/31/2037 $1,311.66 $631.75 $679.91 $169,344.73
179 6/30/2037 $1,311.66 $634.28 $677.38 $168,710.45
180 7/31/2037 $1,311.66 $636.82 $674.84 $168,073.63
181 8/31/2037 $1,311.66 $639.37 $672.29 $167,434.26
182 9/30/2037 $1,311.66 $641.92 $669.74 $166,792.34
183 10/31/2037 $1,311.66 $644.49 $667.17 $166,147.85
184 11/30/2037 $1,311.66 $647.07 $664.59 $165,500.78
185 12/31/2037 $1,311.66 $649.66 $662.00 $164,851.12
Year 2037 $15,739.92 $7,627.31 $8,112.61 $164,851.12
186 1/31/2038 $1,311.66 $652.26 $659.40 $164,198.86
187 2/28/2038 $1,311.66 $654.86 $656.80 $163,544.00
188 3/31/2038 $1,311.66 $657.48 $654.18 $162,886.52
189 4/30/2038 $1,311.66 $660.11 $651.55 $162,226.41
190 5/31/2038 $1,311.66 $662.75 $648.91 $161,563.66
191 6/30/2038 $1,311.66 $665.41 $646.25 $160,898.25
192 7/31/2038 $1,311.66 $668.07 $643.59 $160,230.18
193 8/31/2038 $1,311.66 $670.74 $640.92 $159,559.44
194 9/30/2038 $1,311.66 $673.42 $638.24 $158,886.02
195 10/31/2038 $1,311.66 $676.12 $635.54 $158,209.90
196 11/30/2038 $1,311.66 $678.82 $632.84 $157,531.08
197 12/31/2038 $1,311.66 $681.54 $630.12 $156,849.54
Year 2038 $15,739.92 $8,001.58 $7,738.34 $156,849.54
198 1/31/2039 $1,311.66 $684.26 $627.40 $156,165.28
199 2/28/2039 $1,311.66 $687.00 $624.66 $155,478.28
200 3/31/2039 $1,311.66 $689.75 $621.91 $154,788.53
201 4/30/2039 $1,311.66 $692.51 $619.15 $154,096.02
202 5/31/2039 $1,311.66 $695.28 $616.38 $153,400.74
203 6/30/2039 $1,311.66 $698.06 $613.60 $152,702.68
204 7/31/2039 $1,311.66 $700.85 $610.81 $152,001.83
205 8/31/2039 $1,311.66 $703.65 $608.01 $151,298.18
206 9/30/2039 $1,311.66 $706.47 $605.19 $150,591.71
207 10/31/2039 $1,311.66 $709.29 $602.37 $149,882.42
208 11/30/2039 $1,311.66 $712.13 $599.53 $149,170.29
209 12/31/2039 $1,311.66 $714.98 $596.68 $148,455.31
Year 2039 $15,739.92 $8,394.23 $7,345.69 $148,455.31
210 1/31/2040 $1,311.66 $717.84 $593.82 $147,737.47
211 2/28/2040 $1,311.66 $720.71 $590.95 $147,016.76
212 3/31/2040 $1,311.66 $723.59 $588.07 $146,293.17
213 4/30/2040 $1,311.66 $726.49 $585.17 $145,566.68
214 5/31/2040 $1,311.66 $729.39 $582.27 $144,837.29
215 6/30/2040 $1,311.66 $732.31 $579.35 $144,104.98
216 7/31/2040 $1,311.66 $735.24 $576.42 $143,369.74
217 8/31/2040 $1,311.66 $738.18 $573.48 $142,631.56
218 9/30/2040 $1,311.66 $741.13 $570.53 $141,890.43
219 10/31/2040 $1,311.66 $744.10 $567.56 $141,146.33
220 11/30/2040 $1,311.66 $747.07 $564.59 $140,399.26
221 12/31/2040 $1,311.66 $750.06 $561.60 $139,649.20
Year 2040 $15,739.92 $8,806.11 $6,933.81 $139,649.20
222 1/31/2041 $1,311.66 $753.06 $558.60 $138,896.14
223 2/28/2041 $1,311.66 $756.08 $555.58 $138,140.06
224 3/31/2041 $1,311.66 $759.10 $552.56 $137,380.96
225 4/30/2041 $1,311.66 $762.14 $549.52 $136,618.82
226 5/31/2041 $1,311.66 $765.18 $546.48 $135,853.64
227 6/30/2041 $1,311.66 $768.25 $543.41 $135,085.39
228 7/31/2041 $1,311.66 $771.32 $540.34 $134,314.07
229 8/31/2041 $1,311.66 $774.40 $537.26 $133,539.67
230 9/30/2041 $1,311.66 $777.50 $534.16 $132,762.17
231 10/31/2041 $1,311.66 $780.61 $531.05 $131,981.56
232 11/30/2041 $1,311.66 $783.73 $527.93 $131,197.83
233 12/31/2041 $1,311.66 $786.87 $524.79 $130,410.96
Year 2041 $15,739.92 $9,238.24 $6,501.68 $130,410.96
234 1/31/2042 $1,311.66 $790.02 $521.64 $129,620.94
235 2/28/2042 $1,311.66 $793.18 $518.48 $128,827.76
236 3/31/2042 $1,311.66 $796.35 $515.31 $128,031.41
237 4/30/2042 $1,311.66 $799.53 $512.13 $127,231.88
238 5/31/2042 $1,311.66 $802.73 $508.93 $126,429.15
239 6/30/2042 $1,311.66 $805.94 $505.72 $125,623.21
240 7/31/2042 $1,311.66 $809.17 $502.49 $124,814.04
241 8/31/2042 $1,311.66 $812.40 $499.26 $124,001.64
242 9/30/2042 $1,311.66 $815.65 $496.01 $123,185.99
243 10/31/2042 $1,311.66 $818.92 $492.74 $122,367.07
244 11/30/2042 $1,311.66 $822.19 $489.47 $121,544.88
245 12/31/2042 $1,311.66 $825.48 $486.18 $120,719.40
Year 2042 $15,739.92 $9,691.56 $6,048.36 $120,719.40
246 1/31/2043 $1,311.66 $828.78 $482.88 $119,890.62
247 2/28/2043 $1,311.66 $832.10 $479.56 $119,058.52
248 3/31/2043 $1,311.66 $835.43 $476.23 $118,223.09
249 4/30/2043 $1,311.66 $838.77 $472.89 $117,384.32
250 5/31/2043 $1,311.66 $842.12 $469.54 $116,542.20
251 6/30/2043 $1,311.66 $845.49 $466.17 $115,696.71
252 7/31/2043 $1,311.66 $848.87 $462.79 $114,847.84
253 8/31/2043 $1,311.66 $852.27 $459.39 $113,995.57
254 9/30/2043 $1,311.66 $855.68 $455.98 $113,139.89
255 10/31/2043 $1,311.66 $859.10 $452.56 $112,280.79
256 11/30/2043 $1,311.66 $862.54 $449.12 $111,418.25
257 12/31/2043 $1,311.66 $865.99 $445.67 $110,552.26
Year 2043 $15,739.92 $10,167.14 $5,572.78 $110,552.26
258 1/31/2044 $1,311.66 $869.45 $442.21 $109,682.81
259 2/28/2044 $1,311.66 $872.93 $438.73 $108,809.88
260 3/31/2044 $1,311.66 $876.42 $435.24 $107,933.46
261 4/30/2044 $1,311.66 $879.93 $431.73 $107,053.53
262 5/31/2044 $1,311.66 $883.45 $428.21 $106,170.08
263 6/30/2044 $1,311.66 $886.98 $424.68 $105,283.10
264 7/31/2044 $1,311.66 $890.53 $421.13 $104,392.57
265 8/31/2044 $1,311.66 $894.09 $417.57 $103,498.48
266 9/30/2044 $1,311.66 $897.67 $413.99 $102,600.81
267 10/31/2044 $1,311.66 $901.26 $410.40 $101,699.55
268 11/30/2044 $1,311.66 $904.86 $406.80 $100,794.69
269 12/31/2044 $1,311.66 $908.48 $403.18 $99,886.21
Year 2044 $15,739.92 $10,666.05 $5,073.87 $99,886.21
270 1/31/2045 $1,311.66 $912.12 $399.54 $98,974.09
271 2/28/2045 $1,311.66 $915.76 $395.90 $98,058.33
272 3/31/2045 $1,311.66 $919.43 $392.23 $97,138.90
273 4/30/2045 $1,311.66 $923.10 $388.56 $96,215.80
274 5/31/2045 $1,311.66 $926.80 $384.86 $95,289.00
275 6/30/2045 $1,311.66 $930.50 $381.16 $94,358.50
276 7/31/2045 $1,311.66 $934.23 $377.43 $93,424.27
277 8/31/2045 $1,311.66 $937.96 $373.70 $92,486.31
278 9/30/2045 $1,311.66 $941.71 $369.95 $91,544.60
279 10/31/2045 $1,311.66 $945.48 $366.18 $90,599.12
280 11/30/2045 $1,311.66 $949.26 $362.40 $89,649.86
281 12/31/2045 $1,311.66 $953.06 $358.60 $88,696.80
Year 2045 $15,739.92 $11,189.41 $4,550.51 $88,696.80
282 1/31/2046 $1,311.66 $956.87 $354.79 $87,739.93
283 2/28/2046 $1,311.66 $960.70 $350.96 $86,779.23
284 3/31/2046 $1,311.66 $964.54 $347.12 $85,814.69
285 4/30/2046 $1,311.66 $968.40 $343.26 $84,846.29
286 5/31/2046 $1,311.66 $972.27 $339.39 $83,874.02
287 6/30/2046 $1,311.66 $976.16 $335.50 $82,897.86
288 7/31/2046 $1,311.66 $980.07 $331.59 $81,917.79
289 8/31/2046 $1,311.66 $983.99 $327.67 $80,933.80
290 9/30/2046 $1,311.66 $987.92 $323.74 $79,945.88
291 10/31/2046 $1,311.66 $991.88 $319.78 $78,954.00
292 11/30/2046 $1,311.66 $995.84 $315.82 $77,958.16
293 12/31/2046 $1,311.66 $999.83 $311.83 $76,958.33
Year 2046 $15,739.92 $11,738.47 $4,001.45 $76,958.33
294 1/31/2047 $1,311.66 $1,003.83 $307.83 $75,954.50
295 2/28/2047 $1,311.66 $1,007.84 $303.82 $74,946.66
296 3/31/2047 $1,311.66 $1,011.87 $299.79 $73,934.79
297 4/30/2047 $1,311.66 $1,015.92 $295.74 $72,918.87
298 5/31/2047 $1,311.66 $1,019.98 $291.68 $71,898.89
299 6/30/2047 $1,311.66 $1,024.06 $287.60 $70,874.83
300 7/31/2047 $1,311.66 $1,028.16 $283.50 $69,846.67
301 8/31/2047 $1,311.66 $1,032.27 $279.39 $68,814.40
302 9/30/2047 $1,311.66 $1,036.40 $275.26 $67,778.00
303 10/31/2047 $1,311.66 $1,040.55 $271.11 $66,737.45
304 11/30/2047 $1,311.66 $1,044.71 $266.95 $65,692.74
305 12/31/2047 $1,311.66 $1,048.89 $262.77 $64,643.85
Year 2047 $15,739.92 $12,314.48 $3,425.44 $64,643.85
306 1/31/2048 $1,311.66 $1,053.08 $258.58 $63,590.77
307 2/28/2048 $1,311.66 $1,057.30 $254.36 $62,533.47
308 3/31/2048 $1,311.66 $1,061.53 $250.13 $61,471.94
309 4/30/2048 $1,311.66 $1,065.77 $245.89 $60,406.17
310 5/31/2048 $1,311.66 $1,070.04 $241.62 $59,336.13
311 6/30/2048 $1,311.66 $1,074.32 $237.34 $58,261.81
312 7/31/2048 $1,311.66 $1,078.61 $233.05 $57,183.20
313 8/31/2048 $1,311.66 $1,082.93 $228.73 $56,100.27
314 9/30/2048 $1,311.66 $1,087.26 $224.40 $55,013.01
315 10/31/2048 $1,311.66 $1,091.61 $220.05 $53,921.40
316 11/30/2048 $1,311.66 $1,095.97 $215.69 $52,825.43
317 12/31/2048 $1,311.66 $1,100.36 $211.30 $51,725.07
Year 2048 $15,739.92 $12,918.78 $2,821.14 $51,725.07
318 1/31/2049 $1,311.66 $1,104.76 $206.90 $50,620.31
319 2/28/2049 $1,311.66 $1,109.18 $202.48 $49,511.13
320 3/31/2049 $1,311.66 $1,113.62 $198.04 $48,397.51
321 4/30/2049 $1,311.66 $1,118.07 $193.59 $47,279.44
322 5/31/2049 $1,311.66 $1,122.54 $189.12 $46,156.90
323 6/30/2049 $1,311.66 $1,127.03 $184.63 $45,029.87
324 7/31/2049 $1,311.66 $1,131.54 $180.12 $43,898.33
325 8/31/2049 $1,311.66 $1,136.07 $175.59 $42,762.26
326 9/30/2049 $1,311.66 $1,140.61 $171.05 $41,621.65
327 10/31/2049 $1,311.66 $1,145.17 $166.49 $40,476.48
328 11/30/2049 $1,311.66 $1,149.75 $161.91 $39,326.73
329 12/31/2049 $1,311.66 $1,154.35 $157.31 $38,172.38
Year 2049 $15,739.92 $13,552.69 $2,187.23 $38,172.38
330 1/31/2050 $1,311.66 $1,158.97 $152.69 $37,013.41
331 2/28/2050 $1,311.66 $1,163.61 $148.05 $35,849.80
332 3/31/2050 $1,311.66 $1,168.26 $143.40 $34,681.54
333 4/30/2050 $1,311.66 $1,172.93 $138.73 $33,508.61
334 5/31/2050 $1,311.66 $1,177.63 $134.03 $32,330.98
335 6/30/2050 $1,311.66 $1,182.34 $129.32 $31,148.64
336 7/31/2050 $1,311.66 $1,187.07 $124.59 $29,961.57
337 8/31/2050 $1,311.66 $1,191.81 $119.85 $28,769.76
338 9/30/2050 $1,311.66 $1,196.58 $115.08 $27,573.18
339 10/31/2050 $1,311.66 $1,201.37 $110.29 $26,371.81
340 11/30/2050 $1,311.66 $1,206.17 $105.49 $25,165.64
341 12/31/2050 $1,311.66 $1,211.00 $100.66 $23,954.64
Year 2050 $15,739.92 $14,217.74 $1,522.18 $23,954.64
342 1/31/2051 $1,311.66 $1,215.84 $95.82 $22,738.80
343 2/28/2051 $1,311.66 $1,220.70 $90.96 $21,518.10
344 3/31/2051 $1,311.66 $1,225.59 $86.07 $20,292.51
345 4/30/2051 $1,311.66 $1,230.49 $81.17 $19,062.02
346 5/31/2051 $1,311.66 $1,235.41 $76.25 $17,826.61
347 6/30/2051 $1,311.66 $1,240.35 $71.31 $16,586.26
348 7/31/2051 $1,311.66 $1,245.31 $66.35 $15,340.95
349 8/31/2051 $1,311.66 $1,250.30 $61.36 $14,090.65
350 9/30/2051 $1,311.66 $1,255.30 $56.36 $12,835.35
351 10/31/2051 $1,311.66 $1,260.32 $51.34 $11,575.03
352 11/30/2051 $1,311.66 $1,265.36 $46.30 $10,309.67
353 12/31/2051 $1,311.66 $1,270.42 $41.24 $9,039.25
Year 2051 $15,739.92 $14,915.39 $824.53 $9,039.25
354 1/31/2052 $1,311.66 $1,275.50 $36.16 $7,763.75
355 2/28/2052 $1,311.66 $1,280.60 $31.06 $6,483.15
356 3/31/2052 $1,311.66 $1,285.73 $25.93 $5,197.42
357 4/30/2052 $1,311.66 $1,290.87 $20.79 $3,906.55
358 5/31/2052 $1,311.66 $1,296.03 $15.63 $2,610.52
359 6/30/2052 $1,311.66 $1,301.22 $10.44 $1,309.30
360 7/31/2052 $1,314.54 $1,309.30 $5.24 $0.00
Year 2052 $9,184.50 $9,039.25 $145.25 $0.00

In Conclusion

It takes time and patience to buy a home. But while preparing your finances, it’s good to learn about different mortgage options available in the market.

The most popular type of mortgage is the conventional loan. It requires a good credit score and enough downpayment for approval. If you have a high credit score, you can qualify for competitive rates. For buyers looking for luxury homes, private lenders offer jumbo mortgages that exceed conforming loan limits.

On the other hand, if you have a low credit score with limited funds, you can check government-backed mortgages. This includes FHA loans and USDA loans. And if you’re an active military member or veteran, you can qualify for VA loans. Government-sponsored mortgages have lower credit score requirements compared to conventional loans. However, they come with private mortgage insurance (or funding fee for VA loans), which can make your monthly payment more costly.

Before signing a mortgage deal, shop around and explore your options. Look for more favorable rates and terms. Ultimately, it’s best to take a deal that addresses your financial needs.

 

Prequalify for a Ashburn Mortgage

Homebuyers and current homeowers living in Ashburn can leverage the MRC lending network to find out which loans they will qualify for and get a free no-obligation quote on a Ashburn home purchase or refinance.