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If you’re looking around in hopes of buying a home in Alaska, a mortgage calculator can be a useful tool for you. It will be particularly helpful if you’re a first-time homebuyer who’s never held a mortgage. Exploring how various home prices, interest rates, and loan terms may affect your monthly payments and the ultimate cost of your home loan can help you budget responsibly.
Key Points
• A mortgage calculator can help a homebuyer determine affordability and aid in their future finance management.
• Your mortgage payments in Alaska will include principal, interest, and taxes, and may also comprise insurance and other fees.
• Alaska ranked fifth in the U.S. among states with the highest cost of living in late 2025, and has higher than-average home prices and utility, maintenance, and transportation costs.
• Programs to assist first-time homebuyers with their down payments and closing costs are available.
• If you need to reduce your monthly mortgage payment, you can look into a recast or refinance, and also consider appealing property taxes.
Alaska Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase amount a buyer and seller agree on. If you’re buying your first home in Alaska, it will be an important determiner of your mortgage loan amount and monthly payment.
• Down payment: The down payment is the first installment on a home purchase, usually from 3% to 20% of the home price. Down payment assistance programs can help you cover this cost, especially if you are a first-time homebuyer. A healthy down payment can help you avoid private mortgage insurance (PMI), too.
• Loan term: This is the time you can take to repay your home loan. A 15-year term will carry higher monthly payments — but in the end you’ll pay a lot less interest. A 30-year mortgage, generally the longest term, offers you lower monthly payments but you’ll rack up more interest over the life of the loan.
• Interest rate: The interest rate, expressed as a percentage of the loan amount, is the cost of borrowing the money to buy a home. Your rate can will based on the type of mortgage you apply for, market trends, and your qualifications.
• Annual property tax: Local governments levy property taxes on land and buildings based on guidelines set by your state. You can find your property tax rate by searching online for the town, county, or ZIP code where the property is located and “effective property tax rate.” Understanding rates in your area can help you plan your budget.
• Monthly payment: This is the amount you’ll pay toward your mortgage each month. It typically includes principal and interest, and may comprise property taxes and homeowners insurance. If a down payment is less than 20% of the home price, private mortgage insurance (PMI) may be a line item.
• Total interest paid: The cumulative amount of interest you’ll pay over your mortgage loan’s life is total interest paid. It’s influenced by loan term, interest rate, and down payment. A longer term or a higher rate will increase your total interest paid. A larger down payment can help reduce this amount.
• Total loan cost: This all-in amount is what your loan expense will be, including the principal and interest. A 30-year mortgage will have a higher total loan cost than a 15-year mortgage, due to its longer repayment period and more interest accrued.
How to Use the Alaska Mortgage Calculator
Step 1: Enter Your Home Price
Input the purchase price you and the seller have negotiated. Using this figure, the calculator can estimate both your monthly mortgage payment and total interest cost.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you’ll pay upfront from the menu. With a larger down payment, you can reduce your monthly mortgage payment as well as what you’ll pay in total interest. A down payment calculator can help you decide the ideal amount to put down.
Step 3: Choose a Loan Term
Select the amount of time you’ll need to pay off the mortgage, from 10 to 30 years. A longer home loan term means you’ll have lower monthly payments, but more interest paid in time.
Step 4: Enter an Interest Rate
Input your estimated interest rate. The number should be to the second or third decimal point. Remember that a lower rate may reduce monthly payments and the total interest you pay. Purchasing a pricey property? Look at rates that might be available for a jumbo loan.
Step 5: Add Your Annual Property Tax Rate
Enter the property tax rate for the new home as a percentage. For example, if the rate is 1.2%, input 1.2.
Benefits of Using a Mortgage Payment Calculator
Using a mortgage calculator, you can easily determine just how much house you can afford. This is particularly helpful if you are buying a home for the first time. You can see an estimate of your monthly payments based on loan amount, interest rate, and term, and compare different loan amounts and interest rates to see how they might bite into your budget.
If the type of mortgage loan you choose has a variable interest rate, estimate your costs using this calculator. But know that the estimate will be less precise due to variable rate fluctuations.
In Alaska, the median home sale price in late 2025 is around $423,000. Lenders typically prefer a mortgage payment to be no more than 28% of your gross monthly income. The mortgage payment in this 28% equation will include principal, interest, taxes, and homeowner’s insurance, or PITI.
To afford a $423,000 home following this formula, you’d need to have an annual income of roughly $109,000, assuming you could make a 20% down payment ($97,290) and qualify for a 30-year mortgage at 7.00%. Your estimated monthly mortgage payment would be about $2,542. This equation does not account for other significant debts you may be carrying around, though. If you have a car or student loan payment, or you’re carrying credit card debt, you may not be able to afford this mortgage unless you have a higher income.
A home affordability calculator can help you create an estimate of how much house you can afford, based on your income. You can also participate in the mortgage preapproval process with a lender, which will give you a clear picture of the loan type and size you can afford.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
Principal and the interest are a mortgage payment’s two primary parts. This mortgage calculator also factors in property taxes, which are often included in monthly loan payments. (It’s definitely in your lender’s interest to make sure you don’t lapse on tax bills.) Your monthly payment might also include private mortgage insurance (PMI, necessary if your down payment is under 20%) or homeowners association (HOA) fees, depending on your situation.
If you are considering a Federal Housing Administration (FHA)-guaranteed home loan, use an FHA mortgage calculator. It will factor in the loan’s upfront mortgage insurance premiums.
Looking at a loan backed by the U.S. Department of Veterans Affairs? A VA mortgage calculator is your best bet.
The cost of living in your area affects how much you can afford when buying a home. Higher-cost areas, including Alaska — which had the fifth highest composite cost of living index in the U.S. in late 2025 — tend to have above-average home prices and higher-than-normal costs for utilities, maintenance, transportation, or all of the above.
Alaska’s biggest cities rank very high in the Cost of Living Index (COLI), with Anchorage at 122.8; Fairbanks at 121.5; and Juneau at 127.2. Needless to say, you won’t find many Alaska towns on a list of the best affordable places in the U.S..
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Homebuyers in Alaska are smart to do whatever they can to lower their mortgage payment. Here are some possible ways to reduce the amount you have to come up with monthly to make your payment:
• Drop PMI as soon as you reach 20% home equity. (You will need to inform your lender when you’re ready to do this.)
• Recast your mortgage. You can do this by making a lump-sum payment toward the principal you still owe, and then asking the lender to recalculate your payment.
• Think about appealing your property taxes — though only if you can really determine that they are too high. Inviting scrutiny of a property’s worth can also result in a tax increase, which might increase your payment, so exercise caution here.
• Request that your lender modify your loan if you find yourself facing financial hardship.
• Extend your loan term, which can lower monthly payments.
• Shop around for a cheaper homeowners insurance policy.
• Consider a mortgage refinance if mortgage rates have dropped since you bought your home.
Alaska First-Time Homebuyer Assistance Programs
If you qualify as a first-time homebuyer in Alaska, you may be able to tap into programs that aid with down payments or closing costs to make homeownership accessible to people with limited savings. To top it off, you could get extra perks when you qualify as a new homebuyer — meaning you haven’t owned a primary residence in the last three years. The Alaska Housing Finance Corporation provides below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers.
Spending some time with the Alaska mortgage calculator is a great step to understanding the financial commitment you make when you take on a home loan. It can help you make an informed decision about how much house you can afford. Whether you’re a first-time homebuyer or a seasoned property owner, the calculator will provide valuable insights to ensure you’re well-prepared for your purchase.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
It’s typically a monthly payment including principal and interest, but it may include amounts for property taxes and homeowners insurance, ensuring that these expenses are covered throughout the loan term and that the home remains insured. If mortgage insurance is a requirement, that may also be in the total.
How does my credit score affect my mortgage loan interest rate?
Your credit score impacts your mortgage interest rate significantly. A lender may offer its most attractive interest rate to a borrower with a higher score, reducing the total cost of the mortgage. A lower score may result in a higher interest rate, not to mention stricter lending conditions — if you are approved at all.
What are principal and interest on a mortgage loan?
They are two key components of a mortgage payment. The principal is the original loan amount, while interest is the money you pay to the lender for the privilege of borrowing that amount. In time, as you pay off your loan, more of your payment will go toward the principal, reducing the loan balance and interest you will pay. Look for an amortization schedule with your loan documents; it will tell you how much of your payment each month goes into each bucket.
How much should I put down on a mortgage?
You should pay as much as you comfortably can toward a down payment on your home, while taking care not to pinch your finances to the point that you have no cushion. Don’t empty your emergency fund or stop paying on other debts, for example. One smart move would be to take advantage of low down payments available to first-time buyers. New homebuyers can put down as little as 3% in some cases, and repeat buyers may be able to contribute just 5%. Put down less than 20%, and you’ll likely have to add private mortgage insurance payments to your monthly bill. Always look at the entire financial picture to determine what makes sense.
Should I choose a 30-year or 15-year term for my mortgage?
A 30-year term will offer you lower monthly payments and make homeownership more accessible. A 15-year term will require a higher monthly payment but could save you thousands of dollars in interest. If your budget can accommodate a term of 15 or even 20 years, it’s a smart way to go. But don’t feel bad choosing to lock in 30 years, particularly if this is your first home purchase. It’s the most popular choice of mortgage term in the U.S.
How can I get a lower mortgage interest rate?
To gain access to the most desirable mortgage interest rates, work on cultivating a strong credit score (700 or higher, well over the 620 you’ll need to qualify for a home loan). Complete the prequalification process online with multiple lenders to see how low a rate you can get. Saving to make a higher down payment may help, too, if you can afford to. If you own your home already, explore a mortgage refinance and compare your old loan’s costs compared to those on a new one at a new, lower rate. Remember to consider the closing costs.
How much income do you need to get a $400,000 mortgage?
You’ll probably have to earn around $130,000 annually to qualify for a $400,000 mortgage with a 30-year term and a 7.00% interest rate. This assumes you aren’t burdened by other significant debts. One general rule to consider: Your home price shouldn’t be more than three times your gross income. Always adjust for other substantial debts you’re carrying.
Can I afford a $300K house on a $70K salary?
It would be a stretch. Buying a $300,000 property on a salary of $70,000 is going to be tough unless you can make a large down payment. Advisors suggest that the price of your house should not exceed three times your salary — which in this case should be $210,000. Crunch the numbers using a home affordability calculator to see how much down payment you’ll need to make a $300,000 home doable.
How much is the payment on a $600,000, 30-year mortgage?
What a $600,000 mortgage with a 30-year term will cost you monthly depends on your interest rate. At 6.00%, for example, you’d pay $3,597.30 per month. At 8.00%, your payment would rise to $4,402.59. This estimate includes principal and interest, but property taxes, insurance, and other fees will make it increase.
SoFi Mortgages
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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