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Buying a home on Long Island can be a significant financial undertaking, so it’s essential to understand how your mortgage will affect your budget, month to month and over the entire life of the loan. By showing you what a particular loan will mean for your budget, this Long Island mortgage calculator can help you navigate the complexities of home financing. Simply enter a few pieces of basic information about a home loan — the home price, down payment, interest rate, and loan term — and the calculator will estimate how much you’ll pay each month and what your total costs will be over the entire course of the loan. It can even factor in your property tax if you enter your tax rate.
Whether you’re a first-time homebuyer or an experienced homeowner, this useful resource can help you stay within your financial comfort zone and secure your dream home.
Key Points
• The Long Island mortgage calculator helps prospective homebuyers estimate monthly payments, total interest, and overall loan costs for different home loan options.
• Down payment assistance programs can make homeownership more accessible by offering different kinds of financial help for the initial costs of purchasing a home.
• Your loan term, typically 15 or 30 years, significantly impacts your monthly payments and total interest paid, with shorter terms increasing your payment amounts but reducing total interest costs.
• Having a higher credit score may mean that you’ll be offered a lower interest rate, reducing the amount of your monthly payments and total interest paid over the life of the mortgage.
• For a loan to be affordable, the conventional rule is that your monthly payment should be 28% or less of your gross monthly income.
Long Island, NY Mortgage Calculator
Calculator Definitions
• Home price:This is the purchase price for the property that you and the seller have agreed on. Since it’s arrived at after negotiations, it probably won’t be the same as the original listing you saw or your first offer.
• Down payment:The down payment is the amount you’ll pay upfront in a lump sum, and it’s often expressed as a percentage of the purchase price. Buyers usually put down between 3% and 20%, with a 20% down payment allowing them to avoid private mortgage insurance (PMI). If raising that kind of sum sounds daunting, down payment assistance programs may be able to help you with the cost.
• Loan term:This is the length of time you have to repay your home loan. A 15-year term can mean you have higher monthly payments but significantly reduces the total interest you’ll pay over the life of the loan, compared with a 30-year term.
• Interest rate:The interest rate is the cost of borrowing money, expressed as a percentage of your mortgage amount. The interest rate you’re offered depends on your credit score, market trends, and the type of mortgage you choose.
• Annual property tax:This is the tax you’ll pay to local authorities yearly on your land and the buildings on it. Since Long Island spans multiple counties, the effective property taxes there can vary quite a bit. For example, the effective rate in Nassau County is 1.79%, while in Suffolk County, it’s 2.42%. To find your current tax obligation, search online for your ZIP code or city and “effective property tax rate.”
• Total monthly payment:This represents what you can expect to pay toward your loan principal and interest each month. If you entered your tax rate in the calculator, it will also include property tax costs.
• Total interest paid:The total interest paid is the entire amount of interest you’ll pay over the life of the loan.
• Total loan cost:This represents the all-in amount that you’ll pay for the loan, including the principal amount you borrowed and all accumulated interest.
How to Use the Long Island Mortgage Calculator
Using the Long Island mortgage calculator is simple and straightforward. Just follow these step-by-step instructions.
Step 1: Enter Your Home Price
Input the final price that you and the seller have agreed on for your home purchase.
Step 2: Select a Down Payment Amount
Choose the percentage of the purchase price that you’ll pay upfront. A down payment calculator can help you decide how much will work for you.
Step 3: Choose a Loan Term
Select the amount of time during which you’ll repay your home loan. A shorter term usually means you’ll make larger monthly payments but pay less in total interest, while a longer term generally requires smaller monthly payments but costs you more in total interest paid over the life of the loan.
Step 4: Enter an Interest Rate
Input the interest rate that you’re considering to the second or third decimal point -– for instance, 6.525%. If you’re looking at a particularly expensive property -– as you may well be on Long Island -– it makes sense to check into typical rates for a jumbo loan.
Step 5: Enter Your Home’s Annual Property Tax
Input the percentage of the home’s value, not the dollar amount you’ll pay in taxes. For example, if your property tax rate is 1.790%, you’ll enter 1.790.
Benefits of Using a Mortgage Payment Calculator
When you’re planning to buy a home in the area, the Long Island mortgage calculator is an essential tool. Once you enter a few simple pieces of information about a potential mortgage — such as your home price, down payment, interest rate, and loan term — it immediately provides you with estimates of your monthly payment and overall costs for that loan, showing you how well the loan would work with your budget. The calculator can also factor in your property tax if you enter your rate, giving you an even more comprehensive view of the mortgage’s costs. Additionally, the calculator can help you compare different interest rates and loan terms, which can help you to decide among your options and feel secure about making a smart choice.
Note that the Long Island mortgage calculator is intended for use with fixed-rate mortgages. However, if you choose a type of mortgage loan that has a variable rate, you can still use this calculator to estimate costs. Just be aware that your results will be a bit less precise due to the fluctuations of variable rates.
Deciding How Much House You Can Afford on Long Island
On Long Island, as of late 2025, the median home sales price is around $750,000. If you purchase a home at that price, putting 20% down and financing the rest with a 30-year, fixed-rate mortgage at 7.00% interest, your monthly payment (for principal and interest only) would be $3991.
To assess whether a mortgage is really affordable for you, lenders often recommend the 28/36 rule, according to which your housing costs shouldn’t exceed 28% of your gross monthly income, and your total debt payments should be 36% or less. In this example, that would mean you’d need an annual income of at least $171,000, and you’d have about $1,140 per month to pay other debts, which could include car payments, credit card bills, and student loans, among other obligations. If you have a high level of debt, you might need a higher income to make this loan workable for you.
You can evaluate a loan’s affordability in several other ways, too. One is by using a home affordability calculator, which lets you enter information about your income and debt as well as various fees that might be included with your principal and interest in your monthly payment to get a customized estimate of how expensive a home you can afford.
You can also go through the mortgage preapproval process with a potential lender to get a reasonable idea of how large a loan you can handle.
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
Each time you pay your monthly mortgage bill, the funds may be applied toward multiple costs. Primarily, the payment will go toward your principal (the amount you borrowed) and interest. Depending on your lender and the terms of your loan, the payment might also include property tax and homeowners insurance expenses. If you got your mortgage with less than 20% equity and have to pay for private mortgage insurance (PMI) or if you’re responsible for homeowners association (HOA) fees, those costs could also be bundled into your payment.
What’s covered by your mortgage payment also depends on the type of mortgage loan you get, and specialized mortgage calculators can factor in loan-specific costs. If you’re considering a loan guaranteed by the Federal Housing Administration (FHA), for example, you can use an FHA mortgage calculator, which allows for that kind of loan’s mortgage insurance premiums. Similarly, a VA mortgage calculator takes into account relevant fees and can be useful when you’re considering a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living on Long Island
Long Island technically includes four counties – Kings County (Brooklyn), Queens, Nassau, and Suffolk – but in real estate, the term usually refers to just the last two. Regardless, the cost of living can vary quite a bit from town to town in this extensive area. But that said, Suffolk County, which makes up the majority of Long Island, reportedly has a cost of living 47.1% higher than the national average, according to Best Places, and Long Island as a whole has the reputation of being a relatively expensive place to live.
Let’s look at that in the context of other locations in New York State. The Council for Community and Economic Research’s Cost of Living Index (COLI) compares the cost of living in major metro areas against the national average, which is 100. The chart below shows the COLI for a variety of other areas in New York. You’ll note that areas in adjacent/overlapping New York City are also above the national average.
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
Once you’ve finalized your mortgage and started making payments, you may still be able to lower your monthly payments. Here are a few suggestions to consider.
• After you have 20% equity in your home, you can ask your lender to drop private mortgage insurance (PMI). This could significantly decrease what you pay each month.
• If you receive a large lump sum, like a bonus, see if your lender will recast your loan. This would mean that you’d put the money toward your principal, after which your lender would reamortize your loan at the same interest rate and term, reducing the size of your monthly payments.
• If you think that your property assessment is too high, you can appeal to your local tax authority and potentially get your taxes reduced. It’s helpful to gather evidence, such as recent comparable home sales in your area, to support your case.
• If you’re facing financial hardship, consider asking your lender to modify your loan to make your monthly payments more manageable. This involves changing the terms of your existing mortgage.
• Look into ways to reduce the price of your homeowners insurance policy. You may be able to lower your premium by increasing your deductible, bundling homeowners and auto insurance, or making upgrades that enhance your home’s security or storm resistance.
• Consider a mortgage refinance if you can get a lower interest rate or a longer term. Be sure to allow for closing costs when you’re calculating whether this move makes financial sense for you.
The Takeaway
Using the Long Island mortgage calculator can give you valuable insights into your financial options for homeownership. By estimating monthly payments and total interest paid over the loan term for any mortgage you enter, it will help you pinpoint what you need from your mortgage and how much house you can comfortably afford. Whether you’re a first-time buyer or a repeat homebuyer looking to downsize, understanding the financial implications of different scenarios can help you navigate the complex process of buying a home on Long Island with confidence.
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.
How does my credit score affect my mortgage loan interest rate?
Your credit score can have a significant impact on the mortgage interest rates you’ll be offered. A higher credit score can help secure you a lower interest rate, reducing your monthly payments and the total interest you pay over the life of the loan. Conversely, a lower credit score may result in higher interest rates and less favorable loan terms. Lenders use your credit score to assess your creditworthiness, which is why maintaining a good score is helpful in securing better rates.
What are principal and interest on a mortgage loan?
When you take out a mortgage, the amount of money you borrow is your principal. The cost of borrowing that money is your interest, which is usually expressed as a percentage of the principal.
How can I get a lower mortgage interest rate?
There are several strategies that may help you secure a lower interest rate on your mortgage. You can try to work on improving your credit score before you apply for a loan. A higher credit score can lead to more favorable loan terms and lower interest rates. Additionally, it can be worthwhile to shop around for lenders and compare rates. Putting down a larger down payment may also help.
What income do you need for an $800,000 mortgage with a 6.50% interest rate?
Let’s say you bought a house for $1,000,000 and put down 20% as your down payment. You might finance the rest with a $800,000 fixed-rate mortgage at 6.50%. That would mean your monthly payment would be around $5,057 (for principal and interest only). According to the 28/36 rule, which advises that you pay no more than 28% of your gross monthly income on your monthly mortgage payment, you’d need an income of at least around $217,000 per year. Bear in mind, too, that you’d have around $1,445 per month to cover all your other debts, so if you have a heavy debt load, you might need a higher income to make this mortgage affordable.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
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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