How to Use the Chicago Mortgage Calculator

Components of a Mortgage Payment

A mortgage payment mainly covers the principal (borrowed amount) and interest (borrowing cost). Your monthly payment might also include property tax, which is based on your home’s assessed value. If your down payment is less than 20%, you may be required to purchase PMI. Other potential costs that are often rolled into the payment are homeowners association (HOA) fees and homeowners insurance.

Homebuyers who are considering purchasing with the help of a Federal Housing Administration (FHA) loan will have an upfront and ongoing mortgage insurance premium to pay. These loans are still very affordable and are popular with first-time buyers. If you are considering an FHA loan, use an FHA mortgage calculator.

Similarly, if you are purchasing with a loan backed by the U.S. Department of Veterans Affairs, you’ll want a VA mortgage calculator.

Finally, if you are purchasing a pricey property, consider something called a jumbo loan. This type of loan is designed for when your loan amount is over the conforming loan limit set by the Federal Housing Finance Agency (FHFA). For 2025, the FHFA conforming loan limit for a single-unit property in Chicago is $1,209,750. The baseline limit for most of the U.S. is $806,500. A high-cost area like Chicago has a limit 150% of the baseline.

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The Cost of Living in Chicago

Chicago is an expensive city for purchasing a home, according to its cost of living. This metric gives you a sense of what things cost in a region, including necessities like housing, utilities, groceries, health care, and transportation. The cost of living index (COLI) is measured on a scale of 100 — a COLI higher than 100 means the region is more expensive than the national average, and a COLI below 100 indicates it is less expensive, according to the Council for Community and Economic Research’s Cost of Living Index.

Chicago’s 2024 COLI is 115.1, much higher than nearby Indianapolis at 88.8. Illinois had a 2024 COLI of 94.7. Indiana was 91.0 and Wisconsin, 97.7.

The chart highlights cost of living numbers for major expenses in Chicago:

Source: Council for Community and Economic Research’s Cost of Living Index.

If living in Chicago is a little out of reach, consider Decatur (79.1), Peoria (96.1), and Rockford (89.0), which all landed on the best affordable places in the U.S. list.

Recommended: The Cost of Living in the U.S.

Tips on Reducing Your Mortgage Payment

If you are a homebuyer in Chicago, you are probably looking to reduce your mortgage payment so you can allocate funds to other expenses or continue to build an emergency fund. Here are some things you can do to lower your monthly mortgage payment:

•  Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.

•  Once you’ve built 20% equity in your home, request that your lender cancel PMI payments to save on unnecessary costs.

•  Review your property taxes regularly. If you think your property taxes are too high, the Cook County Assessor’s Office (CCOA) can inform you about the appeals process.

•  See if your insurer offers a discount for bundling policies. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for instance — they may offer a discount.

•  If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.

Chicago’s First-Time Homebuyer Assistance Programs

If you have your sights set on buying your first home in Chicago, there is support for you. First, you may qualify as a first-time homebuyer if you haven’t owned a primary residence within the past three years. Also, the state offers down payment assistance programs that can help with initial costs.

For instance, the Illinois Housing Development Authority administers the IHDA Access Forgivable program for qualifying buyers — including first-time purchasers. The forgivable second loan is designed to be put toward a down payment, closing costs, or both. It’s intended to be used alongside one of the different types of mortgage loans already available, including FHA, VA, USDA, and Fannie Mae HFA Preferred home loans.

Recommended: Do You Qualify as a First-Time Homebuyer?

The Takeaway

Using a Chicago mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand the impact of different down payment amounts, and compare various loan terms and interest rates. This tool can provide a clearer picture of your financial obligations and help you make informed decisions about your home loan. Especially if you are a first-time homebuyer in Chicago, the mortgage calculator can be a practical resource in planning your homeownership journey.

How to Use the Amarillo Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal and interest. The principal is the initial amount you borrow from a lender to purchase the home, while the interest is the cost of borrowing that money. Your regular monthly mortgage payment includes both the principal amount and the interest charge, with the proportion of each changing over the life of the loan.

Initially, a larger portion of your payment is allocated toward interest, but as the loan amortizes, more of your payment goes toward reducing the principal balance.

Property taxes are another significant component, based on the assessed value of your home and varying by location. Understanding these components can help you better manage your budget and financial planning.

If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.

A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

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The Cost of Living in Amarillo

Cost of living impacts affordability, and is an important factor to consider when shopping for real estate. Areas with higher costs of living often have higher home prices, utilities, and transportation expenses. For example, Amarillo’s cost of living index is 83, meaning it’s 17% lower than the national average. It’s also 12% lower than the average across the state of Texas. Here’s a bit more detail about the cost of living in Amarillo.

Tips on Reducing Your Mortgage Payment

Here are some tactics that can help you lower your home loan costs:

•  Make extra payments to pay down the principal faster, which can lower your monthly payments and reduce the total interest paid over the life of the loan. Even small additional payments can have a significant impact over time.

•  Drop private mortgage insurance (PMI) once you have 20% equity in your home, either through regular payments or home appreciation. This can significantly reduce your monthly mortgage payment.

•  Shop around for cheaper homeowners insurance. Comparing quotes helps find the best coverage at a lower rate.

•  Consider mortgage recasting if you receive a financial windfall, such as an inheritance or major refund. By making a lump sum payment toward your mortgage principal, your lender will re-amortize the loan, resulting in lower monthly payments.

•  Appeal your property taxes if you believe they are excessively high. Research recent comparable property assessments and gather evidence to support your case, then submit a formal appeal to the local tax assessor’s office.

•  Seek modification of your loan if you are facing financial hardships. This can involve extending the loan term, reducing the interest rate, or lowering the outstanding principal balance. Contact your lender to discuss your options and provide comprehensive documentation of your financial situation.

Amarillo’s First-Time Homebuyer Assistance Programs

If you’re considering buying your first home in Amarillo, there are several down payment assistance programs available to help you cover the initial costs associated with homeownership. These valuable programs can provide financial aid specifically designated for the down payment, closing costs, or potentially both aspects of the transaction.

To qualify as a first-time homebuyer for most of these programs, you typically must not have owned a primary residence within the past three years. Be sure to check with local housing authorities and reputable lenders in the Amarillo area to find out more detailed information about the specific Texas first-time homebuyer programs available and, importantly, how to apply for them.

The Takeaway

If you are thinking of buying a home in Amarillo, Texas, using a mortgage loan calculator can provide valuable insights. It can help you understand how all relevant factors, including your anticipated down payment, the projected interest rate, and other potential additional costs impact your loan. Considering all these elements allows you to make informed decisions about homeownership in Amarillo.

How to Use the Charleston Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are the principal and interest.

•  The principal is the amount borrowed to purchase the home.

•  The interest is the cost of borrowing that principal.

•  Property tax, typically around 1.25% of the home’s value in Charleston, is another significant component.

Understanding these components can help you budget more accurately and plan for the true cost of homeownership. A larger down payment can reduce the loan amount and monthly payments, and a strong credit score can secure a more favorable interest rate.

Different types of mortgage loans, such as conventional, FHA, VA, and jumbo loans, have varying requirements and interest rates. For example, a 20% down payment on a $300,000 home would be $60,000, reducing the mortgage amount to $240,000.

A mortgage payment calculator can help you assess the affordability of your potential home and plan your finances accordingly. More specifically, if you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.

A VA mortgage calculator is a good option if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

The Cost of Living in Charleston

As noted, Charleston’s cost of living is 2% above the national average and 12% above the state average. Here’s a deeper look at the cost of residing in Charleston:.

Lifestyle, family size, utilities, home maintenance, and transportation also impact expenses. Exploring the best affordable places to live within Charleston can help homebuyers find homes within their budget.

Tips on Reducing Your Mortgage Payment

Consider these pointers to help lower the costs of your home loan:

•  Make extra payments to pay down the principal faster, which can lower your monthly payments and reduce the total interest paid over the life of the loan. Even small additional payments can add up over time.

•  Drop private mortgage insurance (PMI) once you have 20% equity in your home, either through payments or home appreciation. This can significantly reduce your monthly mortgage expenses.

•  Consider mortgage recasting if you receive a bonus or other windfall. By making a lump sum payment toward your mortgage principal, you can request your lender to re-amortize the loan, potentially lowering your monthly payments.

•  Appeal your property taxes if you believe they are too high. Property taxes are based on an assessment of your home and land, and if you think the assessment is inaccurate, you can challenge it.

•  Try to modify your loan if you face financial hardship. Your lender might agree to change the terms of your loan to make monthly payments more manageable.

•  Refinance your mortgage to a longer loan term to lower your monthly payments. For example, if you originally had a 15-year mortgage, you could extend the term to 30 years, making your payments more manageable. Or you could refinance your home loan if interest rates drop considerably. This can lower your monthly payments and overall interest paid, although there are usually fees involved in the process.

Charleston’s First-Time Homebuyer Assistance Programs

If you’re buying your first home in Charleston, there are several down payment assistance programs available to help you cover the initial costs. These programs offer financial aid for the down payment, closing costs, or both, making homeownership more accessible.

How can you qualify as a first-time homebuyer? You typically must not have owned a primary residence within the past three years. Explore local and state programs to find the best fit for your financial situation and take advantage of the support available to first-time homebuyers.

Recommended: South Carolina First-Time Homebuyer Assistance Programs & Grants

The Takeaway

Using a Charleston mortgage calculator can provide valuable insights into your budget and help you make informed decisions about homeownership. These tools consider factors like your income, debts, and down payment to estimate how much house you can afford. Whether you’re a first-time homebuyer or considering refinancing, these calculators can guide you through the financial aspects of buying a home in Charleston, helping you stay within your means and avoid financial strain.

How to Use the Pittsburgh Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal and interest. The principal is the amount borrowed to purchase the home, while the interest is the cost of borrowing that money. In the early years of your mortgage, a larger portion of your payment goes toward interest, but over time, more of it pays down the principal. Property taxes, which are a percentage of your home’s value paid to the local government, are another critical component.

If your down payment is less than 20%, you may also have to pay private mortgage insurance (PMI) to protect the lender. Other potential components include homeowners association (HOA) fees, which cover maintenance and amenities in certain communities. Understanding these components can help you make informed decisions about your mortgage and manage your budget effectively.

If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), you could use an FHA mortgage calculator. It can take into consideration both the loan’s upfront and ongoing mortgage insurance premiums.

What’s more, a VA mortgage calculator can help you do the math and review different scenarios if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

The Cost of Living in Pittsburgh

The cost of living in Pittsburgh, Pennsylvania, is a critical factor in determining how much house you can afford. According to the Missouri Economic Research and Information Center (MERIC), Pittsburgh’s cost of living index is 98.2, which is almost two percent lower than the national average. Some more details:

Other factors influencing the cost of living include lifestyle and family size. Exploring the best affordable places within Pittsburgh can help you find a home that fits your budget.

Recommended: The Cost of Living in the U.S.

Tips on Reducing Your Mortgage Payment

Looking for ways to lower your monthly home loan costs? Consider these options.

•  Make extra payments to pay down the principal faster, which can lower your monthly payments and reduce the total interest paid over the life of the loan. Even small additional payments can have a significant impact over time.

•  Drop private mortgage insurance (PMI) once you reach 20% equity in your home. This can be achieved through regular payments or home appreciation, and can significantly lower your monthly mortgage payment.

•  Shop for a lower homeowners insurance rate. Compare quotes from different providers and consider increasing your deductible, bundling policies, or making security and storm-resistance upgrades to your home to lower your premium payments.

•  Consider mortgage recasting if you receive a bonus or other financial windfall. This process allows you to make a lump sum payment toward your mortgage principal, and your lender will re-amortize the loan with the same interest rate and term, resulting in lower monthly payments.

•  Appeal your property taxes if you believe they are too high. Research your home’s assessed value and compare it to similar properties in your area. If discrepancies are found, gather evidence and submit an appeal to your local tax assessor to lower your property tax bill.

•  Look into refinancing your mortgage if interest rates have fallen. This could lower your monthly payment and overall interest paid on the loan, but make sure you understand the fees involved.

•  Consider modifying your mortgage loan if you face financial hardships. Loan modifications can involve extending the loan term, reducing the interest rate, or forgiving a portion of the principal balance. Contact your lender to discuss your options and provide documentation of your financial situation.

Pittsburgh’s First-Time Homebuyer Assistance Programs

If you’re buying your first home in Pittsburgh, there are several first-time homebuyer assistance programs available to help you cover the initial costs. These programs often provide financial aid for down payments and closing costs. To qualify as a first-time homebuyer, you typically must not have owned a primary residence within the past three years.

Check with local housing authorities or financial institutions for specific first-time homebuyer programs in Pennsylvania and Pittsburgh in particular and the requirements. These resources can make the homebuying process more manageable and affordable.

The Takeaway

A mortgage calculator can be a convenient and powerful tool for estimating your monthly payments and understanding the financial implications of different loan scenarios. It helps you plan your budget and make informed decisions about your home purchase. It can help you see which options best fit your financial situation and goals.