Frequently Asked Questions
What is included in a mortgage payment?
This calculator shows principal and interest only. Your actual payment will also include property taxes, homeowner's insurance, and possibly PMI if your down payment is less than 20%.
How much house can I afford?
A common rule is that your monthly housing payment should not exceed 28% of your gross monthly income. For a $100,000 salary, that's roughly $2,333/month.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has higher monthly payments but you pay significantly less total interest. A 30-year mortgage is easier on monthly cash flow but costs more over time.
What is PMI?
Private Mortgage Insurance is required by most lenders when your down payment is less than 20%. It typically costs 0.5–1.5% of the loan amount per year.
How does the Worth It Score work?
The score factors in your interest rate and down payment. A larger down payment and lower rate produce a higher score, indicating a more favorable mortgage structure.