Home · True Cost
Calculadora de Hipoteca
Understand the true cost of homeownership before you buy. Estimate your monthly payment, compare loan scenarios, and see how interest, taxes, insurance, and extra payments affect your financial future.
⚠️ For educational use only:
Payments, taxes, insurance, and tax benefits are estimates. Actual rates and terms depend on lender, LTV, DTI, credit score, and other factors. This is not an offer of credit.
Home & loan
$
$
%
%
Property costs
$
$
$
%
$
%
Your financial profile
$
$
$
True cost of ownership
$
%
$
%
Extra payments (optional)
$
$
Escenario B (comparación)
Ingresa un segundo escenario para comparar.
$
$
%
🎯 Affordability score
🧾 Cash to close
🏘️ True monthly cost of ownership
📊 Principal vs Interest over time
📉 Remaining balance
🌱 Home equity growth
🏠 Buy vs Rent
| Horizon | Buy — net cost | Buy — equity | Rent — total cost | Buy advantage |
|---|
⚡ Extra payment simulator
| Scenario | Years to payoff | Total interest | Interest saved | Payoff date |
|---|
🏦 Estimated tax benefits
💹 Opportunity cost
🆚 Scenario A vs Scenario B
| Metric | Scenario A | Scenario B | Difference |
|---|
🗓️ Your mortgage timeline
⚠️ ARM: adjustment scenarios
📈 Wealth impact
🎓 Coach Futuro — smart recommendations
Cómo funciona esta calculadora Transparent
Estima el costo real de ser dueño de casa — PITI, HOA, PMI, cierre, mantenimiento, utilities, garantías y más.
It also delivers:
- Puntaje de accesibilidad.
- Gráficos de amortización.
- Refinanciamiento y ARM.
- Escenario A vs B.
- Impacto patrimonial.
- Coach Futuro.
Todo corre en tu navegador — nada se envía a servidores.
Supuestos y limitaciones Educational
- ARMs usan +2% ajuste típico.
- PMI estimado con tasa constante.
- Costos de cierre son %.
- Beneficios fiscales requieren itemize.
- Buy vs Rent asume constantes.
- No es asesoría profesional.
Metodología y fuentes Cited
Amortización estándar + beneficio fiscal aproximado.
¿Quieres un plan que actúe sobre este número?
Coach Futuro es tu coach financiero bilingüe 1:1.
Book free session →
Financial Resources
Explora los recursos financieros de Wells Fargo
When you're ready to take the next step, explore Wells Fargo's financial solutions — including banking, mortgages, credit, and retirement resources — to help support your financial goals.
Explore Wells Fargo Resources →The true cost of borrowing
Tu pago mensual es solo una parte de la historia — un enganche mayor, tasa más baja o pagos extra al principal pueden ahorrarte decenas o cientos de miles a lo largo del préstamo.
Frequently asked questions
1. How is my monthly mortgage payment calculated?
Your monthly mortgage payment is typically made up of four main components: Principal (the amount you borrowed that you're repaying); Interest (the cost of borrowing money from the lender); Property Taxes (taxes assessed by your local government); Insurance (homeowners insurance and, if required, private mortgage insurance, PMI). If your property has HOA dues, those should also be included when estimating your total monthly housing cost.
2. What is the difference between principal and interest?
Principal is the amount you borrowed to purchase your home. Interest is the fee the lender charges for providing the loan. During the early years of most mortgages, a larger portion of your payment goes toward interest. As your loan balance decreases over time, more of each payment is applied to the principal.
3. How much should I put down on a home?
The ideal down payment depends on your financial situation and loan type. General guidelines include: 3%–5% minimum for many conventional loans; 3.5% for FHA loans; 0% for some VA and USDA loans for eligible borrowers; 20% helps avoid PMI on most conventional mortgages. A larger down payment typically reduces your monthly payment, lowers your loan balance, and may qualify you for better interest rates.
4. What is PMI and when do I have to pay it?
Private Mortgage Insurance (PMI) protects the lender if you stop making mortgage payments. Most conventional loans require PMI when your down payment is less than 20% of the home's purchase price. PMI usually ends once you reach enough equity in your home, depending on your lender's policies and current regulations.
5. What loan term should I choose?
Common mortgage terms include 15-year loans (higher monthly payments but significantly less interest over the life of the loan); 20-year loans (a balance between payment size and interest savings); 30-year loans (lower monthly payments with greater flexibility but higher total interest costs). The best option depends on your budget, financial goals, and how quickly you want to build equity.
6. How does my interest rate affect my payment?
Even a small difference in your mortgage interest rate can have a significant impact. For example, reducing your interest rate by just 0.5% may lower your monthly payment and save tens of thousands of dollars over the life of a 30-year mortgage. Comparing different interest rates before choosing a lender can be one of the most valuable financial decisions you'll make.
7. What are closing costs?
Closing costs are fees paid when your mortgage is finalized. They may include loan origination fees, appraisal fees, title insurance, recording fees, credit report fees, escrow and prepaid taxes, and homeowners insurance premiums. Closing costs typically range from 2% to 5% of the home's purchase price, although the amount varies by location and lender.
8. How much home can I afford?
Lenders often evaluate affordability using your Debt-to-Income (DTI) ratio, which compares your monthly debt payments to your gross monthly income. In general, keeping your housing expenses at a manageable percentage of your income can improve your financial flexibility and reduce the risk of becoming 'house poor.' Remember that affordability isn't just about qualifying for a loan—it's about purchasing a home that fits comfortably within your overall financial plan.
9. Should I choose a fixed-rate or adjustable-rate mortgage (ARM)?
A fixed-rate mortgage keeps the same interest rate for the life of the loan, providing predictable monthly payments. An adjustable-rate mortgage (ARM) typically starts with a lower introductory rate, but the rate—and your monthly payment—can increase or decrease after the initial fixed period. A fixed-rate mortgage is often preferred by buyers planning to stay in their home for many years, while an ARM may be worth considering if you expect to sell or refinance before the adjustment period begins.
10. What is an amortization schedule?
An amortization schedule is a detailed table showing every mortgage payment over the life of your loan. It illustrates how much goes toward principal, how much goes toward interest, your remaining loan balance after each payment, and how your equity grows over time. Understanding your amortization schedule can help you see the long-term impact of making extra payments.
11. Can I pay off my mortgage early?
Yes. Most mortgages allow you to make extra payments toward the principal without penalty, although it's always wise to confirm with your lender. Making additional principal payments can reduce the total interest you pay, build home equity faster, shorten the length of your mortgage, and help you become debt-free sooner. Even small recurring extra payments can create significant long-term savings.
12. How much can extra monthly payments save me?
Paying even a modest amount extra each month can dramatically reduce both your loan term and total interest paid. For example, adding an extra $100 to $200 per month toward principal may save tens of thousands of dollars over a 30-year mortgage, depending on your loan amount and interest rate. This calculator allows you to compare different extra payment strategies to see their impact.
13. How does my down payment affect my mortgage?
Your down payment influences several important aspects of your loan, including your monthly payment, your loan amount, whether you'll pay PMI, your interest costs over time, and the amount of equity you have from day one. A larger down payment generally results in lower borrowing costs and greater financial flexibility.
14. Why do property taxes and insurance matter?
Your mortgage payment usually includes more than just principal and interest. Many lenders collect money each month for property taxes, homeowners insurance, flood insurance (if applicable), and PMI (if required). These costs can vary significantly depending on where you live, so it's important to include them when estimating your true monthly housing expense.
15. What is escrow?
An escrow account is managed by your mortgage lender to collect funds for expenses such as property taxes and homeowners insurance. Instead of paying these bills separately, a portion is included in your monthly mortgage payment. When the bills are due, the lender pays them on your behalf using the money held in escrow. This helps homeowners budget for large annual expenses throughout the year.
16. How often should I compare mortgage rates?
Mortgage rates change frequently and can vary between lenders. It's a good idea to compare offers from multiple lenders before applying for a mortgage or refinancing. Even a slightly lower interest rate can reduce your monthly payment and potentially save thousands of dollars over the life of your loan. Shopping around is one of the simplest ways to reduce the total cost of homeownership.
17. What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of how much you may be able to borrow based on information you provide. Pre-approval is a more detailed review by a lender that includes verification of your income, assets, credit history, and other financial documents. Sellers often view pre-approved buyers as stronger candidates because financing is more likely to be completed.
18. Does improving my credit score lower my mortgage payment?
Yes. A higher credit score can help you qualify for lower interest rates, which may reduce your monthly payment and the total interest you pay over the life of the loan. Even improving your credit score by one pricing tier before applying for a mortgage could potentially save thousands of dollars over the life of your loan.
19. Is buying a home always better than renting?
Not necessarily. The right decision depends on factors such as how long you plan to stay in the home, local housing prices, mortgage interest rates, your down payment, maintenance costs, and your financial goals. Buying allows you to build equity over time, while renting may offer greater flexibility. Comparing both options can help you determine which is best for your situation.
20. How much income should I spend on housing?
Many financial professionals recommend keeping your total monthly housing costs—including principal, interest, taxes, insurance, and HOA fees—at a level that comfortably fits within your overall budget. Lenders often use Debt-to-Income (DTI) ratios when evaluating mortgage applications, but qualifying for a loan doesn't necessarily mean it's the right financial decision for your lifestyle and long-term goals.
21. Should I wait for lower mortgage rates before buying?
Trying to perfectly time mortgage rates is difficult because they can change quickly. Instead of waiting for the 'perfect' rate, focus on purchasing a home that fits your budget and financial goals. If rates decline in the future, refinancing may provide an opportunity to lower your monthly payment.
22. What happens if home values increase?
As your home's market value increases and you continue paying down your mortgage, your equity grows. Greater home equity may provide benefits such as increased net worth, the ability to refinance under favorable conditions, access to a home equity loan or line of credit (HELOC), if appropriate, and more financial flexibility when selling your home. Keep in mind that home values can rise or fall, and appreciation is never guaranteed.
23. What is home equity?
Home equity is the portion of your home that you truly own. It's calculated as Home Value − Remaining Mortgage Balance = Home Equity. For example: home value $500,000; mortgage balance $350,000; home equity $150,000. As you pay down your mortgage and if your home's value increases, your equity typically grows.
24. Is this calculator only for buying a home?
No. While it's designed primarily for home purchases, it can also be useful for comparing different loan terms, evaluating refinancing opportunities, estimating the impact of changing interest rates, planning extra principal payments, and understanding the long-term cost of a mortgage. Whether you're buying your first home, moving, refinancing, or paying off your loan early, this calculator can help you make more informed financial decisions.
25. What is a good down payment for a home?
There isn't a one-size-fits-all answer. While many buyers aim for a 20% down payment to avoid Private Mortgage Insurance (PMI), plenty of loan programs allow much smaller down payments. A larger down payment generally reduces your monthly mortgage payment, lowers the amount of interest you'll pay over time, may qualify you for better loan terms, and builds instant equity in your home. The best down payment is one that allows you to purchase comfortably while still maintaining an emergency fund and avoiding unnecessary financial stress.
26. What is the difference between APR and the interest rate?
Although they are related, they are not the same. Interest Rate is the cost of borrowing the money. Annual Percentage Rate (APR) includes the interest rate plus certain lender fees and financing costs, providing a more complete picture of the loan's overall cost. When comparing mortgage offers, looking at both the interest rate and APR can help you make a more informed decision.
27. How much interest will I pay over the life of my mortgage?
The total interest you pay depends on several factors, including loan amount, interest rate, loan term, down payment, and extra principal payments. On a traditional 30-year mortgage, it's common for homeowners to pay hundreds of thousands of dollars in interest over the life of the loan. Making extra payments or choosing a shorter loan term can substantially reduce those costs.
28. What happens if I make one extra mortgage payment each year?
Making one additional mortgage payment annually can have a surprisingly large impact. Depending on your loan amount and interest rate, it may shorten your mortgage by several years, save tens of thousands of dollars in interest, and help you build home equity faster. Even small, consistent extra payments can make a meaningful difference over time.
29. Should I choose the maximum loan I qualify for?
Not necessarily. Lenders determine how much you can borrow, but only you can determine how much you should borrow. Before purchasing a home, consider your monthly budget, emergency savings, retirement contributions, other financial goals, and future lifestyle changes. Buying below your maximum borrowing limit may provide greater financial flexibility and reduce long-term stress.
30. Can refinancing save me money?
It can, but refinancing isn't always the right choice. Refinancing may help you lower your interest rate, reduce your monthly payment, shorten your loan term, eliminate PMI, and access home equity for eligible purposes. However, refinancing usually involves closing costs, so it's important to calculate your break-even point before deciding.
31. Why should I compare multiple mortgage scenarios?
Small changes can produce dramatically different outcomes. This calculator allows you to compare different down payments, interest rates, loan terms, extra monthly payments, and property taxes and insurance costs. Exploring multiple scenarios helps you understand the trade-offs between monthly affordability, total interest paid, and long-term wealth so you can choose the mortgage that best aligns with your financial goals.
32. How accurate is this mortgage calculator?
This calculator provides an estimate based on the information you enter and standard mortgage formulas. Actual loan payments may vary depending on your lender's terms, credit score, loan program, closing costs, escrow requirements, local taxes and insurance premiums, and other fees specific to your mortgage. Use the results as an educational planning tool, and consult a mortgage professional for a personalized loan estimate before making a home purchase or refinancing decision.