Question 1

What is MortgageCompareCalculator.com?

Accepted Answer

MortgageCompareCalculator.com is a free, advanced mortgage calculator designed to go beyond basic payment estimates. It lets you model fixed, variable, and adjustable-rate mortgages; add real-world costs like property taxes and insurance; simulate extra payments; and compare up to three distinct mortgage scenarios side by side - all in your browser, instantly.

Question 2

Is the calculator free? Do I need to create an account?

Accepted Answer

Completely free, with no account required. Every feature - including multi-tab comparison, amortization schedules, and the Save & Share tools - is available to anyone who visits the site. There is no paywall, no sign-up form, and no subscription.

Question 3

Is my data private? Does the calculator send anything to a server?

Accepted Answer

All calculations run entirely in your browser. No mortgage figures, home prices, or down payment amounts are sent through analytics events. The app does make network requests for analytics, ads, reCAPTCHA, IP-based country defaults, and optional contact or feedback forms. When you use the Share feature, your scenario data is compressed into the URL itself - it is never stored on our servers.

Question 4

Which countries does the calculator support?

Accepted Answer

The calculator fully supports both the United States and Canada . Each tab has its own Country setting, so you can even compare a US mortgage against a Canadian one in the same session. Selecting Canada automatically: Switches currency display to CAD Applies the legally required semi-annual compounding method for fixed-rate mortgages Enables Canadian-specific loan programs (Conventional and CMHC Insured) Unlocks the GDS/TDS Qualification Calculator and the Mortgage Term section Enables all six payment frequencies, including accelerated bi-weekly and accelerated weekly - options that are a standard Canadian mortgage feature but not widely offered by US lenders

Question 5

What are the default values when I open the calculator?

Accepted Answer

On first load, two tabs open (CALC 1 and CALC 2) with the same financial defaults below, except payment frequency : CALC 1 is Monthly and CALC 2 is Bi-weekly (Accelerated) so you can compare right away. If you add a tab with + , it starts with Monthly payments. Those defaults are (all editable): Country: USA Loan Program: Conventional Home Price: $800,000 Down Payment: $160,000 (20%) Mortgage Type: Fixed Rate Interest Rate: 4.5% Amortization Period: 30 years Property Taxes: 1.2% of home price (annual) Home Insurance: $1,200/year HOA / Utilities: $0/month

Question 6

How do I compare multiple mortgage scenarios?

Accepted Answer

Click the + button next to the calculator tabs to open a second or third tab (up to three). Each tab is fully independent - enter different rates, loan programs, or down payment amounts in each one. Once two or more tabs are open, a COMPARE tab appears automatically. Click it to see a side-by-side metrics table, grouped cost breakdown, and a combined balance-over-time line chart. This is especially useful when shopping between lenders, deciding between a 15-year and 30-year term, or weighing a conventional loan against an FHA loan.

Question 7

How do I rename a calculator tab?

Accepted Answer

Click the pencil button on the tab. Type a new name (up to 24 characters) and press Enter or click away to confirm. Descriptive names like "Scenario A - 15yr Fixed" or "FHA 3.5% Down" make it easier to keep track of what each tab represents when you have multiple scenarios open.

Question 8

How do I close a calculator tab?

Accepted Answer

Use the close button on the tab. A confirmation dialog will ask you to confirm before closing, since all inputs and one-time payment edits in that tab will be lost. The close button is only visible when more than one tab is open - the last tab cannot be closed.

Question 9

What does the COMPARE tab show?

Accepted Answer

The Compare view has six sections, each designed to answer a different question at a glance: Winner Banner: A large highlighted section at the top that immediately names the winning scenario - ranked by lowest total interest paid, with loan duration as the tiebreaker. It shows two highlighted figures: total interest saved and total payments saved, plus a green label showing how many years and months earlier the winner is paid off. Hidden entirely when all scenarios are tied. Scenario Header Cards: Two color-coded cards placed side by side, one per scenario. Each card shows the mortgage type, rate, term, and home price summary, with the average monthly payment displayed as the dominant number. The winning scenario receives a "Better deal ✓" label. Metrics Bar Grid: Four key metrics - Monthly Payment, Total Interest Paid, Total Cost, and Payoff Date - displayed as comparative horizontal bar charts (shown when exactly two scenarios have results). Bar widths are proportional to each scenario's value, so you instantly see the gap without doing mental math. A plain-language callout beneath each panel summarises the difference (e.g. "$1,575/mo less with Scenario 2"). Mortgage Balance Over Time: A chart showing each scenario's remaining balance over time, with shaded areas between the two curves so the gap is immediately visible - showing exactly where and how quickly the scenarios diverge. Total Cost Breakdown: A grouped breakdown shows how your total spend splits across principal, interest, down payment, homeowner expenses, PMI, and extra payments. Smart Comparison Table: A collapsible three-section table - Mortgage Info , Payment Breakdown , and Lifetime Totals . Winner cells are highlighted in green, loser cells are muted, and key rows include labels (e.g. "$316k less ✓" or "+3.5% higher") when at least two scenarios have calculation results. With two scenarios, labels compare tab 1 vs tab 2 (calculator tab order). With three scenarios, all three columns show values, but labels and highlighting apply only to the overall winner vs runner-up (closest competitor by total financing cost); the third column stays neutral (no label, not muted). A third tab can look best on one row (e.g. lowest rate) without a label if it is not the runner-up. Insight Strip: A dark navy footer bar with three plain-language takeaways: Break-even perspective (which month the winner starts costing less), Rate difference impact (the rate gap and estimated cost per 1% over the full term), and Equity built faster (which scenario builds more equity by year 5 and by how much). Shown when a clear overall winner exists; with three scenarios, a note clarifies the comparison is against the closest competitor.

Question 10

What are Key Insights and how do I read them?

Accepted Answer

The Key Insights section displays six summary cards for the active tab: Payment Amount: Your base principal + interest payment per selected payment period (e.g., monthly or bi-weekly). Total Monthly Payment: Your base payment plus all homeowner expenses (taxes, insurance, HOA), normalized to a monthly figure. Total Interest: The cumulative interest paid over the full amortization period. This is one of the most important numbers for evaluating the true cost of a loan. Total Cost: Principal + total interest, representing the grand total you pay for the home over the life of the mortgage. Total Extra Payments: The sum of all recurring and one-time extra payments entered. Comparing this to the interest saved shows the return on making those extra payments. Last Payment Date: The month and year your mortgage will be fully paid off, accounting for any extra payments you've entered.

Question 11

How do I read and use the Amortization Schedule?

Accepted Answer

The amortization schedule shows every single payment over the life of your mortgage, grouped by calendar year. Rows are collapsed by default; click a year to expand it and see the month-by-month breakdown of principal, interest, expenses, extra payments, and remaining balance. You can enter a one-time extra payment on any individual row by clicking into the Extra Payments column for that month. This is useful for modeling irregular lump-sum payments like a tax refund or annual bonus. One-time payments are reflected in the remaining balance and all Key Insights figures immediately. For ARM and variable-rate mortgages, the schedule also shows rate adjustment markers so you can see exactly when and by how much your rate changes.

Question 12

How do I switch between monthly, semi-monthly, bi-weekly, and weekly payments?

Accepted Answer

In the Mortgage Terms section, use the Payment Frequency dropdown. You can choose Monthly , Semi-monthly (1st & 15th) , Bi-weekly (Standard) , Bi-weekly (Accelerated) , Weekly (Standard) , or Weekly (Accelerated) . The entire amortization schedule, Key Insights, and all totals recalculate instantly when you change this setting. See the "Payments & Extra Payments" section below for an explanation of how each frequency works.

Question 13

Can I use the calculator on my phone or tablet?

Accepted Answer

Yes. The calculator is fully responsive and designed to work on mobile devices, tablets, and desktop screens. The layout adjusts automatically: input fields stack vertically on smaller screens, and charts resize to fit the available width.

Question 14

How do I save my calculations so I can come back to them later?

Accepted Answer

Click the Save button at the top of the calculator. This compresses all your tab inputs - including one-time payment edits - into a special code that is stored directly in the page URL (the ?s=… parameter). You can then bookmark the URL in your browser ( Ctrl+D on Windows, ⌘D on Mac) to return to your exact scenario at any time. A "Changes not saved" banner appears at the top whenever you modify any input after your last save, reminding you to save again before bookmarking. Note: no data is stored on our servers. The saved state lives entirely in the URL, so if you clear your bookmarks or lose the link, the data cannot be recovered.

Question 15

How do I share a scenario with someone else?

Accepted Answer

Click the Share button to open the Share dialog, which displays a complete URL containing your full calculator state. Copy the link and send it to a co-borrower, spouse, financial advisor, or real estate agent. When the recipient opens the link, the calculator loads with all your tabs and inputs exactly as you left them. A blue confirmation banner appears for a few seconds confirming that the shared state was loaded successfully.

Question 16

Can I download my calculations as a file?

Accepted Answer

Yes. Click the green Download button at the top of the calculator (to the right of the Save and Share buttons) to instantly export all your current calculations to a formatted Excel (.xlsx) file. The file downloads directly to your browser's default downloads folder - no dialog, no format choice, no extra steps. The file is named mortgage-compare-calculator- {YYYY-MM-DD-HH-MM} .xlsx and includes a sheet for every open calculator tab plus a Comparison sheet when two or more tabs are open.

Question 17

What does the downloaded Excel file contain?

Accepted Answer

Each calculator tab sheet contains three stacked sections: Inputs - all mortgage terms (country, loan program, rate, amortization period, payment frequency, start date), annual expense settings, and any extra payment configuration. Key Insights - the six summary metrics: payment amount, total payment including expenses, total interest, total cost, total extra payments, and last payment date. Amortization Schedule - the full payment-by-payment table with Date, Payment (P+I), Principal, Interest, Expenses, Extra Payments, and Balance columns. Dollar amounts are formatted as $#,##0.00 so they remain true numbers in Excel - you can sum, sort, and format them further. When two or more tabs are open, a Comparison sheet is also included, mirroring the side-by-side table shown in the Compare tab (Home Price, Principal, Down Payment, Rate, Amortization Period, Payment Frequency, Average Monthly Payment, Total Interest, Total Cost, Total Extra Payments, Last Payment Date). All sheets use formatted headers (dark navy section headers, blue column headers) and alternating row shading for readability.

Question 18

What does the "Changes not saved" banner mean?

Accepted Answer

After you click Save , the URL is updated with your current state. If you subsequently change any input - rate, home price, extra payments, etc. - the calculator detects that the URL is now out of date and displays the "Changes not saved" banner. This is a reminder to click Save again before bookmarking or sharing, so the link always reflects your latest scenario.

Question 19

What is the difference between a Fixed, Variable, and Adjustable Rate mortgage?

Accepted Answer

Fixed Rate: Your interest rate is locked for the entire amortization period. Your principal + interest payment never changes. This provides predictability and protection against rising rates, but you won't benefit if rates fall unless you refinance. Variable Rate: Your rate moves with a benchmark (usually the prime rate) throughout the loan. In Canada, variable mortgages come in two flavors: ARM-style (payment adjusts with the rate) and VRM-style (payment stays fixed; the amortization period extends or shrinks). Variable rates often start lower than fixed rates, but introduce payment uncertainty. Adjustable Rate (ARM): Starts with a fixed rate for an initial period (e.g., 5 years in a 5/1 ARM), then adjusts periodically (e.g., annually) based on a market index plus a lender margin. Rate caps limit how much the rate can move at each adjustment and over the life of the loan. ARMs can be advantageous if you plan to sell or refinance before the fixed period ends.

Question 20

What ARM details can I configure, and what do they mean?

Accepted Answer

When you select Adjustable Rate , the ARM Details section appears with these fields: Initial Fixed Period: How many years the starting rate is locked. A 5/1 ARM has a 5-year fixed period. Adjustment Frequency: How often the rate adjusts after the fixed period ends (e.g., every 12 months). Index Rate: The market benchmark the lender uses (e.g., SOFR, Treasury). This is the base rate before adding the margin. Margin: The lender's fixed markup added to the index. Fully Indexed Rate = Index + Margin. Initial Adjustment Cap: The maximum rate change allowed at the very first adjustment after the fixed period. Periodic Cap: The maximum rate change at each subsequent adjustment. Lifetime Cap: The maximum total rate change over the entire life of the loan from the initial rate. The calculator also displays a 3-scenario payment card showing your projected payment in the best case (rate at lifetime floor), expected case (fully indexed rate today), and worst case (lifetime cap reached).

Question 21

What is an amortization period?

Accepted Answer

The amortization period is the total length of time over which your mortgage is scheduled to be fully paid off - for example, 15, 20, 25, or 30 years. A longer amortization period means lower monthly payments but significantly more total interest paid. A shorter amortization period means higher payments but less interest and a faster path to full ownership. Use the calculator's Compare feature to quantify exactly how much interest you save by choosing a shorter amortization period.

Question 22

How does compounding work for Canadian fixed-rate mortgages?

Accepted Answer

Canadian mortgage law requires that fixed-rate mortgages use semi-annual compounding, which is different from the monthly compounding used in the United States. When you select Canada as the country, the calculator automatically applies the correct compounding formula so your payment calculations are legally accurate. You do not need to adjust any settings manually - the Country selection handles it.

Question 23

What is a Conventional loan?

Accepted Answer

A conventional loan is not backed by a government agency. It typically requires a minimum 3-5% down payment for qualified buyers, though you'll need 20% down to avoid Private Mortgage Insurance (PMI). Conventional loans usually offer the most flexibility in loan amounts and property types, and borrowers with strong credit profiles often get competitive rates.

Question 24

What is an FHA loan and when should I consider it?

Accepted Answer

An FHA loan is insured by the Federal Housing Administration. Key features: Minimum 3.5% down payment (with a credit score of 580+) More lenient credit score requirements compared to conventional loans Upfront Mortgage Insurance Premium (MIP): 1.75% of the loan amount, rolled into your loan balance Annual MIP: 0.15%-0.55% of the loan amount, charged monthly FHA loans are popular with first-time buyers who have limited savings or less-than-perfect credit. The calculator automatically adds the upfront MIP to your principal and factors the annual MIP into your monthly costs.

Question 25

What is a VA loan and who qualifies?

Accepted Answer

VA loans are guaranteed by the Department of Veterans Affairs and are available to eligible active-duty military members, veterans, and surviving spouses. No down payment required (0% down) No private mortgage insurance (PMI) A funding fee of 1.4%-3.6% applies, depending on down payment percentage and whether it's your first VA loan use. The fee is waived for veterans with qualifying service-related disabilities. VA loans are one of the most powerful mortgage benefits available. The calculator applies the correct funding fee based on your down payment inputs.

Question 26

What is a USDA loan?

Accepted Answer

USDA loans are backed by the US Department of Agriculture and are designed for moderate-income borrowers purchasing homes in eligible rural and suburban areas. No down payment required (0% down) Upfront guarantee fee: 1% of the loan amount (rolled into the loan) Annual fee: 0.35% of the remaining loan balance, charged monthly Property location eligibility is determined by the USDA - the calculator models the costs accurately, but you should verify your property's eligibility on the USDA website.

Question 27

What is a Jumbo loan?

Accepted Answer

A Jumbo loan is a conventional mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2026, the standard conforming limit is $806,500 ($1,209,750 in designated high-cost areas). Jumbo loans typically require a 10-20% down payment, stronger credit, and more extensive financial documentation. They cannot be purchased by Fannie Mae or Freddie Mac and are held directly by lenders, which often means slightly higher rates.

Question 28

What is PMI and when does it apply?

Accepted Answer

Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home price. PMI protects the lender - not you - in case of default. Once your loan balance drops to 80% of the original appraised value, you can typically request PMI cancellation. The calculator flags your LTV (loan-to-value) ratio in the program info panel so you can see whether PMI applies to your scenario.

Question 29

How does the calculator model PMI in the amortization schedule and Comparison View?

Accepted Answer

When your down payment is below 20% on a US conventional loan, the calculator automatically applies a default PMI rate of 0.8% per year of the remaining loan balance. You can adjust this in the Monthly Homeowner Expenses section - either as an annual percentage of the outstanding balance or as a fixed monthly dollar amount, whichever matches your lender's quote. PMI is charged month by month throughout the amortization schedule and stops automatically the moment your outstanding balance reaches 80% of the original home price. In the amortization table you'll see a separate PMI column that shows the charge each month and goes to zero at the exact month it cancels. In the Comparison View , three dedicated PMI rows let you compare scenarios at a glance: Monthly PMI (initial): your starting monthly PMI charge. PMI Cancels: the projected month and year PMI drops off. Total PMI Paid: cumulative PMI cost over the full loan term.

Question 30

What is CMHC mortgage insurance and when is it required?

Accepted Answer

CMHC (Canada Mortgage and Housing Corporation) insurance - also called mortgage default insurance - is mandatory for any home purchase with a down payment of less than 20% in Canada. The premium is based on your loan-to-value ratio: 5.00-9.99% down: 4.00% premium 10.00-14.99% down: 3.10% premium 15.00-19.99% down: 2.80% premium The premium is added to your mortgage balance (not paid upfront in cash). Some provinces also charge a provincial sales tax on the premium (BC 7%, ON 8%, QC 9%), which is paid at closing and is not rolled into the loan. The calculator accounts for both the premium and any applicable PST automatically.

Question 31

What is a mortgage term in Canada, and how is it different from the amortization period?

Accepted Answer

In Canada, the amortization period is the total time to pay off the mortgage (e.g., 25 years), while the term is the length of your current contract with the lender (e.g., 5 years). At the end of each term, you renew at the current market rate. Most Canadians choose 5-year fixed terms, though 1-, 2-, 3-, 7-, and 10-year terms are common. The Canadian Term Section lets you enter an expected renewal rate for each future term (for example, after year 5, 10, and 15 on a 25-year amortization with a 5-year term). Blank fields reuse the previous renewal rate or your original contract rate. The summary table and amortization schedule show how payments change at every modeled renewal. Older shared links that only set a single renewal rate still expand that rate across every remaining renewal for the same overall behavior as before. A renewal banner appears in the amortization table at each term boundary.

Question 32

What is the GDS/TDS calculator and why does it matter?

Accepted Answer

GDS (Gross Debt Service) and TDS (Total Debt Service) are two ratios Canadian lenders use to assess whether you can afford a mortgage: GDS = (mortgage payment + property tax + heating + 50% of condo fees) / gross monthly income x 100. Lenders generally require GDS at or below 39%. TDS = (all GDS costs + other monthly debt payments) / gross monthly income x 100. Lenders generally require TDS at or below 44%. Enter your household income and debt details in the GDS/TDS panel to see whether your scenario likely qualifies under standard Canadian lending guidelines. The calculator displays colour-coded progress bars and a pass/fail result. Note that lenders may also apply a stress test at a qualifying rate higher than your actual mortgage rate.

Question 33

What is the trigger rate for a Canadian variable rate mortgage (VRM)?

Accepted Answer

With a Variable Rate Mortgage (VRM) in Canada, your payment stays constant even as the prime rate moves. When prime rises enough, however, your fixed payment may no longer cover the interest portion - this point is called the trigger rate . Once the trigger rate is hit, lenders typically require you to increase your payment, make a lump-sum payment, or convert to a fixed rate. The calculator dynamically computes your personal trigger rate and displays a colour-coded warning: Red: Prime needs to rise 1% or less to hit the trigger - high risk Orange: 1-2% rise would trigger - moderate risk Amber: More than 2% rise required - lower risk

Question 34

What is the difference between Bi-weekly Standard and Bi-weekly Accelerated payments?

Accepted Answer

Bi-weekly Standard: 26 payments per year, calculated as monthly payment x 12 / 26 . The total annual amount paid is identical to making 12 monthly payments - this option simply splits your payments into smaller amounts more frequently, which may be more convenient for borrowers paid bi-weekly. Bi-weekly Accelerated: 26 payments per year, each equal to half your monthly payment . Because there are 26 bi-weekly periods in a year but only 24 half-months, you effectively make one extra monthly payment per year. This typically saves 3-4 years off a standard 25-year mortgage and reduces total interest by tens of thousands of dollars. Use the Compare feature to see the exact difference for your scenario. Weekly Accelerated: 52 payments per year, each equal to one-quarter of your monthly payment . Like accelerated bi-weekly, this results in approximately 13 monthly payments per year of principal and interest, producing the same savings profile. Canadian borrowers: Accelerated bi-weekly and accelerated weekly are built into many Canadian mortgage products as a standard feature - lenders calculate and schedule these payments automatically. US borrowers: Most US lenders do not offer formal accelerated bi-weekly or accelerated weekly mortgage products. However, some lenders or third-party servicers offer bi-weekly payment programs that produce the identical result - 26 half-payments per year equals 13 full payments. You can replicate either accelerated option yourself using the Recurring Extra Payments feature, or simply by making one extra monthly payment per year toward principal. The calculator shows a reminder of this whenever you combine Country = USA with an accelerated frequency.

Question 35

What payment frequencies are available, and how do they differ between the US and Canada?

Accepted Answer

The calculator supports the following payment frequencies: Monthly - 12 payments/year. The standard default in both countries. Semi-monthly - 24 payments/year. Two fixed payment dates per month (e.g. the 1st and 15th). The total paid equals 12 monthly payments. Bi-weekly (Standard) - 26 payments/year. One payment every 2 weeks, sized so the annual total equals 12 monthly payments. Weekly - 52 payments/year. The annual total equals 12 monthly payments. Bi-weekly (Accelerated) - 26 payments/year, each equal to half your monthly payment. The extra two payments per year (versus semi-monthly) effectively add one full monthly payment annually, meaningfully reducing amortization and total interest. Weekly (Accelerated) - 52 payments/year, each equal to one-quarter of your monthly payment. Like accelerated bi-weekly, this results in approximately one extra monthly payment per year. Canada is unusually flexible here: all six frequencies - including both accelerated options - are a core feature of Canadian mortgage products and are widely offered by lenders as a formal contractual choice. United States lenders generally offer monthly as the default. Formal accelerated bi-weekly or accelerated weekly mortgage products are not widely standardized across US lenders. Some lenders or third-party servicers do offer bi-weekly payment programs that produce the same outcome as Canadian accelerated bi-weekly (26 half-payments = 13 full payments per year). US borrowers can use the accelerated-style frequency options in the calculator, but must note that in practice they will need to make an extra monthly payment in the year to obtain the accelerated savings.

Question 36

How do I set up recurring extra payments?

Accepted Answer

Expand the Recurring Extra Payments card and enter: Extra Payment Amount: How much extra you want to pay each period. Frequency: Monthly, semi-monthly (1st & 15th), bi-weekly, weekly, or yearly. Start Date: When the extra payments begin. End Date (optional): Leave blank to continue for the full remaining amortization, or set a date if you only plan to make extra payments for a limited time. All extra payments are applied directly to principal, which reduces your balance faster, shortens the amortization period, and reduces total interest. The Key Insights section immediately reflects the updated payoff date and interest savings.

Question 37

What is a one-time extra payment, and how do I add one?

Accepted Answer

A one-time payment (OTP) is a lump-sum extra payment applied to a specific month in the amortization schedule. To add one, scroll to the amortization schedule, expand the year you want, and click the Extra Payments cell for the target month. Type in the amount and click away or press Tab - the schedule and all Key Insights recalculate after a brief moment. OTPs are great for modeling irregular payments like a year-end bonus, tax refund, or the proceeds from selling an asset.

Question 38

Why should I make extra mortgage payments?

Accepted Answer

Every dollar of extra payment reduces your outstanding principal, which means less interest accrues in subsequent months. Because interest is charged on the remaining balance, the effect is compounding - early extra payments have a disproportionately large impact. For example, on a $400,000 mortgage at 5% over 25 years, an extra $200/month could save over $50,000 in total interest and cut roughly 4 years off the amortization. Use the calculator to experiment: add a recurring extra payment and watch how the "Total Interest" and "Last Payment Date" figures in Key Insights change instantly.

Question 39

What does the Monthly Homeowner Expenses section include?

Accepted Answer

This section adds the three most common ongoing homeownership costs on top of your principal and interest payment: Property Taxes: Defaults to 1.2% of the home price (annual rate, shown as a monthly share in totals). You can switch to a fixed monthly dollar amount if you know your escrow payment. Home Insurance: Enter your actual monthly premium as a fixed dollar amount, or switch to a percentage of home value for estimation. HOA / Utilities: Defaults to $0. Enter any monthly homeowners association fees or recurring utility costs you want to factor in. Each expense can be entered either as a percentage of home price or as a fixed dollar amount - toggle between the two modes with the button next to each field. Including these costs gives you a realistic picture of your true monthly housing cost, not just the mortgage payment.

Question 40

Why should I include property taxes and insurance in my calculations?

Accepted Answer

Mortgage lenders qualify you based on your total housing payment, which almost always includes taxes and insurance (often collected in escrow). A mortgage payment that looks affordable in isolation may stretch your budget once taxes, insurance, and HOA fees are added. Including these costs in the calculator gives you the same "total monthly payment" figure your lender will use, helping you avoid surprises and plan your budget accurately.

Question 41

What is the difference between Total Cost and Total Interest?

Accepted Answer

Total Interest is the cumulative amount of interest paid to the lender over the full amortization period. It does not include any expenses or the principal itself. Total Cost = Principal + Total Interest. This represents the total amount you pay for the mortgage itself , excluding ongoing expenses like taxes and insurance. On a 30-year loan, total interest often exceeds the original loan amount, which is why comparing amortization periods and making extra payments can save such significant sums.

Question 42

How does the down payment percentage and dollar amount stay in sync?

Accepted Answer

The Down Payment $ and Down Payment % fields are linked. When you change one, the other updates automatically based on the current home price. If you change the home price, the dollar amount adjusts to maintain the same percentage. This makes it easy to experiment: type "10%" to instantly see the dollar amount required, or type a specific dollar figure to see what percentage that represents. The loan-to-value ratio (and any applicable program fees like PMI, CMHC, or VA funding fee) updates accordingly.

Question 43

Do extra payments help me cancel PMI sooner?

Accepted Answer

Yes. Because PMI cancels automatically once your outstanding balance reaches 80% of the original home price, any extra payments that reduce your principal faster also bring that cancellation date closer. The effect can be significant: even a modest recurring extra payment can shave months - sometimes years - off the time you're paying PMI. To see the exact impact, set up a recurring extra payment in the Extra Payments section, then open the Comparison View with two tabs - one with extra payments and one without. The "PMI Cancels" and "Total PMI Paid" rows will show you the difference in cancellation date and cumulative PMI savings, alongside the interest savings from paying down principal faster.

Frequently Asked Questions

Getting Started

Using the Calculator

Mortgage Types & Rates

Loan Programs (USA)

Canadian Mortgages

Payments & Extra Payments

Costs & Expenses