Free Nebraska Home Mortgage Loan Calculator
Nebraska Mortgage Calculator
By SoFi Editors | Updated September 22, 2025
House hunting can be both thrilling and overwhelming. The Nebraska mortgage calculator simplifies this process by providing an easy-to-use online tool. Input a few key details to instantly estimate your monthly payments and total interest costs. You can also explore various scenarios to find the ideal home price, down payment, and interest rate that align with your financial goals.
Key Benefits:
• Estimate Monthly Payments: Quickly determine your monthly mortgage payments, including principal and interest.
• Explore Down Payment Options: Discover how different down payment amounts impact your payments and explore assistance programs to reduce upfront costs.
• Understand Affordability: Lenders generally recommend that your monthly mortgage payments do not exceed 28% of your gross monthly income.
• Analyze Loan Terms: See how different loan durations affect your monthly payments and overall interest paid.
• Consider Additional Costs: Beyond the calculator’s estimate, remember to account for other expenses like private mortgage insurance (PMI), homeowners insurance, and homeowners’ association (HOA) fees.
Nebraska Mortgage Calculator
Calculator Definitions
• Home Price: This is the final agreed-upon purchase price of the home, which may differ from the initial listing or your first offer.
• Down Payment: The upfront amount you plan to pay, typically expressed as a percentage of the home price. Down payments usually range from 3% to 20%, with down payment assistance programs available to help some buyers.
• Loan Term: The duration over which you will repay the home loan. Common terms are 15 or 30 years. Shorter terms can reduce total interest but increase monthly payments, while longer terms offer lower monthly payments but may lead to more overall interest.
• Interest Rate: The cost of borrowing money, shown as a percentage of the loan amount. Rates are influenced by borrower qualifications, market trends, and loan type.
• Annual Property Tax: Taxes charged by local governments on your land and buildings, based on state guidelines. You can find your specific property tax rate by searching online for your property’s town, county, or ZIP code along with “effective property tax rate.”
• Monthly Payment: The amount you pay each month towards the loan’s principal and interest, plus a portion for property taxes. This calculation does not include home insurance, private mortgage insurance (PMI), or homeowners association (HOA) fees.
• Total Interest Paid: The entire amount of interest you will pay over the life of your home loan. This can be reduced by making a larger down payment, securing a lower interest rate, or choosing a shorter loan term.
• Total Loan Cost: The complete amount you will pay for the loan, encompassing both the principal borrowed and all accumulated interest.
How to Use the Nebraska Mortgage Calculator
Step 1: Enter Your Home Price
Input the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right figure for your budget.
Step 3: Choose a Loan Term
Select the length of time, from 10 to 30 years, you would like to repay the mortgage. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Enter your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Type in the home’s property tax rate as a percentage. For example, type 1.2 if the rate is 1.2%.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you determine how much house you can afford, which is particularly helpful if you’re buying your first home. You’ll be able to see an estimate of your monthly payments based on loan amount, interest rate, and term. You can compare different loan amounts and interest rates to see how big a bite they might take out of your budget. If the type of mortgage loan you choose has a variable interest rate, you can estimate your costs using this calculator, but the estimate will be less precise due to the fluctuations of a variable rate.
Recommended: The Cost of Living in the U.S.
Deciding How Much House You Can Afford
In Nebraska, the median home sale price in mid-2025 was $305,000 — well below the national median of around $443,000, according to Redfin. Knowing that lenders suggest a mortgage payment shouldn’t exceed 28% of your gross monthly income, you’d need to earn an annual income of about $70,114, if you were looking to afford a $305,000 home, factoring in a 20% down payment ($61,000), a 30-year mortgage at 7.00%, and an average Nebraska property tax rate (1.5%).
Because lenders typically recommend total debt payments stay under 36% of your gross monthly income, your other monthly debts shouldn’t exceed $589 in this case.
Use a home affordability calculator to help you crunch the numbers. It can also be useful to go through the mortgage preapproval process with a potential lender to get a clear picture of how large a loan you can afford.
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount borrowed and the interest charged. The Nebraska home mortgage calculator factors in property taxes, which are often included in the monthly payments. Your payment could also include PMI, home insurance, or HOA fees, depending on your situation.
If you’re looking into a home loan guaranteed by the Federal Housing Administration (FHA), then use an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
Look into using a VA mortgage calculator if you’re seeking a loan backed by the U.S. Department of Veterans Affairs.
And if you are looking into purchasing a very 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, which is set by the Federal Housing Finance Agency (FHFA).
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:
Cost of Living in Nebraska
The cost of living reflects how much you can afford in a certain area. For instance, a dollar spent in Omaha, Nebraska, would go further than a dollar spent in a major city like New York or Los Angeles. You would expect to pay higher average home prices, utilities, home maintenance, transportation, and other necessities in places with a higher cost of living, so refer to the cost of living index (COLI) to figure out how much money it takes for you to maintain a basic standard of living in a given place. A COLI higher than 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive.
Nebraska’s 2024 COLI was 92.6, according to the Council for Community and Economic Research’s Cost of Living Index. That figure is a bit lower than Colorado’s 2024 COLI at 102.7, which means it’s less expensive to live in Nebraska than in Colorado. For another comparison, consider South Dakota’s 2024 COLI was 91.9, much more in line with Nebraska’s. New York and California, with COLI of 125.1 and 142.3, respectively, are much more expensive states.
To further help you compare the cost of living in Nebraska, look at Lincoln’s COLI at 94.4 and Omaha’s at 91.9. And if you’re considering buying a home in one of the best affordable places in the U.S., you can use this cost of living index as a tool to help you decide where to live.
Recommended: Average Monthly Expenses for One Person
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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
If you are a homebuyer in Nebraska, 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.
• When 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, go to your county clerk or county assessor’s office and ask about the appeals process.
• See if your insurer offers a discount for bundling policies. Some insurers offer a discount if you purchase more than one policy with them, for example both a homeowners and auto policy.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
• Consider something called a loan modification if you are experiencing financial hardship. A modification changes the terms of a loan, like having a new repayment timetable, a lower interest rate, or a switch from an adjustable rate to a fixed rate. Be prepared to show bank statements or tax returns to demonstrate your financial situation.
Nebraska First-Time Homebuyer Assistance Programs
For first-time homebuyers, there are programs that can make homeownership more achievable by reducing the upfront financial burden. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years. Down payment assistance programs, which can provide financial aid for the down payment, closing costs, or both, can help make homeownership more accessible.
For first-time homebuyers in Nebraska, the Nebraska Investment Finance Authority offers programs, some of which cater to veterans.
The Takeaway
Using the Nebraska mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand mortgage components, and make informed decisions about your home loan. By using this tool, you can better navigate homeownership and align your budget with your goals. The Nebraska mortgage calculator can be a helpful resource for first-time homebuyers and those considering refinancing.
If you are looking into purchasing a very 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, which is set by the Federal Housing Finance Agency (FHFA).
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.
FAQ
How much should my down payment be on a mortgage?
A larger down payment of 20% or more can result in lower monthly mortgage payments and potentially better loan terms. But certain types of mortgages will accept as little as 3% to 5% as a down payment, so explore your options. How much you decide to put down is an individual decision based on your financial situation and goals so use a Nebraska mortgage calculator to run the numbers.
Should I choose a 30-year or 15-year mortgage term?
Consider that a 30-year term offers lower monthly payments but more interest over time, while a 15-year term has higher monthly payments but less interest paid overall. The mortgage term that you choose is based on your financial goals and budget.
How can I get a lower mortgage interest rate?
For the lowest mortgage interest rate, work on improving your credit score by aiming for 700 or higher (this is well over the 620 credit score you’ll need to qualify for a home loan). If you go through the mortgage preapproval process with a variety of lenders, you can see how low a rate you might be able to obtain. Look into making a higher down payment, but only if it’s in line with your budget.
How much is the payment on a $600,000, 30-year mortgage?
The monthly payment on a $600,000 mortgage with a 30-year term will depend on your interest rate and a down payment, among other factors. For example, with an interest rate of 6.00% and a down payment of 20% ($120,000), your monthly payment would be $2,878 monthly. This estimate includes principal and interest but not property taxes, insurance, or other fees. Use the Nebraska mortgage calculator to help you refine the numbers to your situation.
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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
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.
SOHL-Q325-099
Get prequalified in minutes for a SoFi Home Loan.
Free Montana Home Mortgage Loan Calculator
Montana Mortgage Calculator
By SoFi Editors | Updated September 26, 2025
House hunting can be stressful, but online tools like a Montana mortgage calculator can make the process smoother. By using this mortgage calculator, you can learn the monthly payment amount and total interest cost for your home purchase. You can experiment with a variety of scenarios by plugging in different home prices, down payment amounts, and interest rates to see if the payments work for your financial situation.
Key Points
• Use our Montana mortgage calculator to help estimate the monthly payment and total cost of borrowing money to buy a home.
• In general, your monthly mortgage payment should not exceed 28% of your gross monthly income.
• Get familiar with key terms like total interest paid, and how that figure can help you compare scenarios and mortgage offers.
• Montana first-time homebuyer programs offer down payment and closing cost assistance.
• There are ways to reduce your mortgage payments, such as bundling insurance policies with your homeowners provider to get a discount.
Montana Mortgage Calculator
Calculator Definitions
• Home price: The home price is the agreed-upon purchase price with the home seller. This may differ from the listing price and your initial offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price, typically anywhere from 3% to 20%. A larger down payment can lower your monthly mortgage payments and eliminate the need for private mortgage insurance (PMI). Down payment assistance programs can help cover this cost.
• Loan term: The loan term is the length of time you have to repay the mortgage, typically 15 or 30 years. A 15-year fixed mortgage has higher monthly payments but costs less in interest over the loan term, while a 30-year fixed mortgage offers lower monthly payments but costs more over time. The Montana mortgage calculator can help you compare how different loan terms affect your monthly payments.
• Interest rate: The interest rate is the cost of borrowing money. It’s expressed as a percentage of the loan amount and varies based on a variety of factors, including your credit score, market trends, and the type of mortgage loan.
• Annual property tax rate: Local governments charge property tax on your land and buildings within guidelines set by your state. To find your property tax rate, go online and search for the town, county, or ZIP code where the property is located and the phrase “effective property tax rate.”
• Monthly payment: The monthly payment includes the principal and interest of the home loan. Our calculator also factors in property taxes. Some lenders also include homeowners insurance and homeowners association (HOA) fees in payments.
• Total interest paid: The total interest paid represents the entire amount of interest you will pay over the life of the loan. By making a larger down payment, having a lower interest rate, or a shorter loan term, you can reduce your total interest paid.
• Total loan cost: The total loan cost is the entire price you will pay for the loan, including the principal that you repay and the interest.
How to Use the Montana Mortgage Calculator
Step 1: Enter Your Home Price
Type the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right amount for your budget.
Step 3: Choose a Loan Term
Select the length of time you would like to repay the mortgage, anywhere from 10 to 30 years. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the home’s property tax rate as a percentage. For example, type 1.2 if the rate is 1.2%. 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.”
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you estimate how much house you can afford by calculating monthly payments based on loan amount, interest rate, and term. Use this tool to compare costs, like how different interest rates affect payments. Check out different loan terms to see their impact on expenses and total interest. The calculator can also help you see how your down payment figures in.
Recommended: The Cost of Living in the U.S.
Deciding How Much House You Can Afford
While Montana housing prices are higher than the national average, the state enjoys relatively low property taxes on residential real estate as compared to the national property tax rate average, which is 0.90%.
In Montana, the median home sale price in mid-2025 was $534,700 — much higher than the national median of around $443,000, according to Redfin.
Working under the 28/36 rule that says your maximum mortgage payment should be 28% of your gross income, you’d need to earn an annual income of about $121,000 if you were looking to afford a $530,000 home, factoring in a 20% down payment ($106,000), a 30-year mortgage at 7.00% and an average Montana property tax rate (0.79%). Your other monthly debts shouldn’t exceed 36% of your gross income, or $808.
Use a home affordability calculator to factor in your income, debts, and other housing costs. This tool can help you ensure your home purchase aligns with your financial goals and constraints.
Another way to get a clear picture of what your budget can bear is to go through the mortgage preapproval process with a lender. You’ll provide some detailed financial information, they’ll check your credit score and assess your stats and if you qualify, you’ll be preapproved for a loan amount.
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).
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount borrowed and the interest charged. This home mortgage calculator also factors in property taxes, which are often included in the monthly payments. Your payment could also include PMI, homeowners insurance, and homeowners association (HOA) fees, depending on your situation.
If you’re looking into a home loan guaranteed by the Federal Housing Administration (FHA), then use an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is the right tool if you’re seeking a loan backed by the U.S. Department of Veterans Affairs.
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:
Cost of Living in Montana
The cost of living in Montana is comparable to the average cost of living nationally. When you think about purchasing a home, look at the cost of living, which reflects how much you can afford in a certain area. Higher cost of living states — like California and New York — typically have higher average home prices, utilities, home maintenance, transportation, and other necessities. A dollar spent in Billings, Montana, for example, would go a lot further than a dollar spent in a major city like New York.
The cost of living index (COLI) helps you figure out how much money it takes for you to maintain a basic standard of living in a given place. A COLI higher than 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive.
Montana’s 2024 COLI was 95.5, according to the Council for Community and Economic Research’s Cost of Living Index, similar to nearby states like Idaho (99.9) and Wyoming (93.7).
To further consider living costs, Billings had a 2024 COLI of 99.8 and Great Falls was 90.0, much less expensive cities than Seattle (145.1) or Chicago (115.1). Overall, living in Montana is much more affordable than most places around the U.S. California (142.3), Massachusetts (141.2) and New York (125.1) have some of the highest standards of living in the U.S.
If you’re considering buying your first home in one of the best affordable places in the U.S., you now know how to compare cost of living numbers to help you decide.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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
Your mortgage payment is probably your largest recurring expense, so reducing this monthly payment, even slightly, could free up resources to tackle other debts or help you build that emergency fund. Here are some tips to help you lower your mortgage payment:
• Once you’ve built 20% equity in your home, request that your lender cancel PMI payments to save on unnecessary costs.
• Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.
• Take a closer look at your property taxes. If you think you’re paying too much in property taxes, go to the Montana Department of Revenue or your county tax appeal board to ask about the appeals process.
• Look into bundling with your insurance provider. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for example — they may offer a discount.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
• If you are experiencing financial difficulties, consider a loan modification. A modification changes the terms of a loan, like having a new repayment timetable, a lower interest rate, or a switch from an adjustable rate to a fixed rate. Be prepared to show proof of financial hardship with bank statements or tax returns.
Recommended: Average Monthly Expenses for One Person
Montana First-Time Homebuyer Assistance Programs
For first-time homebuyers in Montana, there are state-based programs that offer low-interest mortgage loans and assistance with closing costs and down payments. Many are income-based, so you may need to meet income limits and other criteria to qualify. One condition to qualify as a first-time homebuyer is that you must not have owned a primary residence within the past three years.
The Montana Board of Housing administers programs for first-time homebuyers including the Bond Advantage Down Payment Assistance Program to help cover a down payment. Check with the Montana Department of Commerce for details and eligibility.
The Takeaway
The Montana mortgage calculator is a valuable tool to help you in the home-buying process. You can use it to 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. Whether you’re a first-time homebuyer in Montana or looking to refinance, the mortgage calculator can be a helpful resource in planning your homeownership journey.
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.
FAQ
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly affects your mortgage interest rate. A higher score often leads to better loan terms and lower interest rates, while a lower score may result in higher rates and more stringent lending requirements.
How much should my down payment be on a mortgage?
How much you put down should be what you feel comfortable with, taking into account your financial situation. A 20% down payment can help avoid private mortgage insurance (PMI) and could reduce monthly payments and overall loan cost. A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home, while a repeat buyer may be able to contribute just 5%. To determine how much your down payment should be, review your financial picture and figure out what makes sense for you.
Should I choose a 30-year or 15-year mortgage term?
When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but costs more in interest over time, while a 15-year term has higher monthly payments but costs less in interest overall. Assess your financial goals and budget when opting for a certain term.
How can I secure a lower interest rate?
Improve your credit score to 700 or higher for the most competitive rates (you will need a 620 credit score to qualify for a home loan). Go through the prequalification process with a variety of lenders and compare rates. If you can afford it, consider putting down a larger down payment. If you already own a home, you can explore a mortgage refinance and compare the cost of your old loan versus a new one (plus closing costs) at a new, lower rate.
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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
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.
SOHL-Q325-098
Get prequalified in minutes for a SoFi Home Loan.
Free Minnesota Home Mortgage Loan Calculator
Minnesota Mortgage Calculator
By SoFi Editors | Updated September 26, 2025
If you’re thinking about the possibility of purchasing a home in the North Star State, figuring out if you can handle the mortgage payments ahead — and exactly how you’ll pay them each month — is a big prep step. A Minnesota mortgage calculator can provide you with clarity on what your monthly expenses might look like. It can also assist you in making informed decisions about your down payment, loan term, and more. This article will fill you in on how to use a mortgage calculator and help you get the most out of this tool as you look for your dream home in Minnesota.
Key Points
• Using a mortgage calculator involves inputting the home’s purchase price, your down payment, and the interest rate and loan term.
• The home’s Minnesota property tax rate will impact the monthly payment amount.
• A loan’s term may be 10 to 30 years, and will be a determiner of monthly and overall costs.
• First-time homebuyer programs can help aspiring buyers afford a down payment or cover closing costs.
• A mortgage calculator can help you determine what home price, down payment, and interest rate best suit your financial situation, so you can find a home you can afford.
Minnesota Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you’ve agreed on with the property’s seller. This figure may differ from the listing price and the initial offer you made.
• Down payment: The down payment is the amount the homebuyer pays upfront, and is often expressed as a percentage of the home price. Most buyers put down between 3% and 20%. A down payment calculator can show how different percentages translate into dollar amounts.
• Loan term: Most homebuyers pay off their mortgages over a 15-year or 30-year term, though 10- and 20-year terms may also be available. A longer term means lower payments but more interest to pay over the life of the home loan. A shorter term means higher monthly payments but faster equity — and less interest in the end.
• Interest rate: The interest rate is the cost of borrowing the money to buy a home, and is expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and the type of mortgage loan sought.
• Annual property tax: Property tax is levied by local governments on land and buildings. It’s expressed as a percentage of a home’s assessed value. Minnesota’s annual property tax rate is currently 0.98%.
• Monthly payment: The monthly payment that the Minnesota calculator crunches includes loan principal and interest, as well as property taxes. Keep in mind that you may need to pay for private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees in addition.
• Total interest paid: The total interest paid amounts to how much interest you’ll pay over the life of your home loan. This figure can be substantial — and grows with your loan’s term. The Minnesota mortgage calculator shows you how different down payment amounts, interest rates, and loan terms affect the interest you will pay on the money you borrow.
• Total loan cost: The total loan cost is the all-in amount you’ll repay, including principal and interest. This figure gives you a clear understanding of the long-term financial commitment buying a home entails.
How to Use the Minnesota Mortgage Calculator
Step 1: Enter Your Home Price
Type in the final negotiated amount you’ve agreed to pay the seller for the property. This lets the calculator create an accurate estimate of your monthly mortgage payments.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you plan to pay upfront. A larger down payment will make your monthly mortgage payments more manageable and potentially eliminate a need for PMI, which is usually required if you put down less than 20% of the home price.
Step 3: Choose a Loan Term
Select the amount of time over which you’ll repay your mortgage, typically 15 or 30 years. The longer the term, the lower the monthly payments but the higher the total interest paid.
Step 4: Enter an Interest Rate
Input your desired interest rate to the second or third decimal point. This rate significantly impacts both your monthly mortgage payment and the total cost of the loan.
Step 5: Add Your Property Tax
Enter the percentage of your home’s value that you’ll be required to pay each year as property tax. If your property tax rate is 0.78%, for instance, you’ll enter 0.78. Count on it impacting your total monthly mortgage payment.
Recommended: Do You Qualify as a First-Time Homebuyer?
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps homebuyers estimate the affordability of different loan scenarios. You can calculate monthly payments and long-term costs based on the loan amount, interest rate, and term. The calculator also factors in funds to pay property taxes, which are often held in escrow by the mortgage company. The taxes are then paid to the appropriate agencies. (It’s in the lender’s interest for your property to stay out of tax arrears.)
If you’re buying your first home and the world of mortgage rates is new to you, you can easily get up to speed on how they work by using this calculator. It’s particularly proficient at demonstrating how different interest rates or down payment amounts can impact short- and long-term costs
Deciding How Much House You Can Afford
The median home sale price in mid-2025 in Minnesota was around $368,600, according to Redfin. Lenders recommend keeping your home loan payment at 28% or less of your gross monthly income. To buy a $350,000 home with a 20% down payment ($70,000) and a 30-year mortgage at 7.00%, you’d need a minimum income of nearly $100,000. Your monthly mortgage payment would be just under $2,300. You’d have to earn more to compensate if your down payment was smaller, or if you were carrying other debt.
Another way to get a handle on your Minnesota housing budget is to work backward from your gross monthly income using a home affordability calculator, which can take into consideration other debts you may be working on settling, like a car payment or a student loan balance.
You could test-run the mortgage preapproval process with a lender, too. Just provide detailed financial information to one or more institutions to see if the lenders will preapprove you. If you qualify, they will offer you a loan amount and interest rate.
Components of a Mortgage Payment
A mortgage payment mainly covers two things: an installment on the principal (aka the home price or borrowed amount) and accruing interest (the borrowing cost). Your monthly payment might also include other line items, like your property tax, which is based on your home’s value. If your down payment is less than 20%, the lender will likely require private mortgage insurance (PMI). Other costs potentially rolled into the payment include homeowners association (HOA) fees and homeowners insurance.
Homebuyers who are considering making a purchase with the help of a Federal Housing Administration (FHA) loan will have an upfront and ongoing mortgage insurance premium (MIP) to pay. Regardless, these loans are affordable and popular among first-time buyers. If you are looking at an FHA loan, use an FHA mortgage calculator to create a budget. Similarly, if you plan to purchase your home with a loan backed by the U.S. Department of Veterans Affairs, you’ll want to run your numbers through a VA mortgage calculator.
Recommended: Average Monthly Expenses for One Person
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:
Cost of Living in Minnesota
The cost of living in your area affects how much you can afford when you buy a home. According to Missouri Economic Research and Cost of Living data, Minnesota was close to the middle in the U.S. in late 2025 with an index of 94.6%. The state’s residents encounter slightly higher-than-average grocery and health-related costs.
Here’s a look at how some major Minnesota cities compare to the national average for living expenses. In the chart, 100 equals the average cost of living in the U.S.
| Minnesota Cities’ Cost-of-Living Stats | |
|---|---|
| Mankato | 95.1 |
| Minneapolis | 93.6 |
| St. Cloud | 97.6 |
| St. Paul | 94.0 |
Other Minnesota towns that appear on a list of the best affordable places in the U.S. include Maple Grove, Eagan, Duluth, Red Wing, and Winona. Homes in some of Minnesota’s higher-cost cities and towns might require a jumbo loan as a mortgage option.
Recommended: Average Monthly Expenses for One Person
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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
Minnesota homebuyers have strategies and opportunities to lower their mortgage payment. Here are some possible ways to reduce the amount you have to pay on your home loan monthly:
• Drop PMI when you reach 20% home equity. (You’ll need to inform your lender.)
• Recast your mortgage by making a lump-sum payment toward the principal, and then asking your lender to recalculate your monthly payment.
• Think about appealing your property tax — but only follow through if you can be very sure that they are too high. A reassessment can also result in a tax increase, which may well increase your monthly payment. Tread carefully here.
• If you find yourself facing financial hardship, request a possible loan modification from your lender.
• Extend your loan term from, say, 20 years to 30. This move can lower your monthly payments.
• Shop around for a less-costly homeowners insurance policy.
• Consider a mortgage refinance if mortgage rates have dropped since you bought your home. Don’t forget to factor in the closing costs on this move.
Minnesota First-Time Homebuyer Assistance Programs
If you qualify as a first-time homebuyer in Minnesota, you can possibly tap into state programs that aid aspiring owners with down payments or closing costs. A state agency called Minnesota Housing makes homeownership accessible to people with limited savings and earnings, providing below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers. 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.
Consult a guide to first-time home-buying programs in Minnesota for advice.
The Takeaway
Getting to know what the Minnesota mortgage calculator can do for you is a great first step if you’re set on buying a home of your own. It can help you understand the financial commitment it takes to be successful after being granted a home loan. The calculator can help you make informed decisions about how much house you can afford and whether you’re prepared to make your purchase. Whether you’re a first-time homebuyer or a seasoned property owner, it can provide valuable insights.
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.
FAQ
How does my credit score affect my mortgage loan interest rate?
Your credit score has a serious impact on your mortgage interest rate, since lenders routinely offer their most attractive interest rates to borrowers with higher scores. The lower the interest rate, the more overall affordable the total cost of the mortgage will be. A lower score could result in a higher interest rate and stricter conditions, and could stand in the way of your approval.
How much should I put down on a mortgage?
You should make as large a down payment as you comfortably can on your home. Take care, however, not to pinch your finances and leave yourself without a cushion. Don’t empty your emergency fund or stop paying on other debts. Do take advantage of low down payments for first-time buyers, since they can in some cases put down as little as 3%. Repeat buyers may be able to contribute just 5%. In most cases, if you put down less than 20% you’ll have PMI added to your monthly bill. Always look at the entire financial picture to determine what makes sense for your financial scenario.
Should I choose a 15-year or 30-year term for my mortgage?
A 15-year term will have you making a higher monthly payment, but it could save you thousands of dollars in interest. A 30-year term gives you lower monthly payments, making homeownership quite a bit more accessible. Can your budget accommodate a term of 15 or even 20 years? Then shorter is a smart way to go. But you can also feel just fine locking in 30 years, especially if this is your very first home purchase. It’s the choice in most first mortgages in the U.S.
How can I get a lower mortgage interest rate?
To get the best rate, focus on your credit score and make it ultra-competitive (700 or higher, which is way over the 620 you need to simply qualify). Prequalify online with multiple lenders, and vie for the best rate they offer. Save up so you can make a higher down payment.
Can I afford a $300K house on a $70K salary?
It would not be easy to do. Paying off a $300,000 property when you are bringing home $70,000 annually is going to be a strain, unless you can find the cash to make a hefty down payment. Advisors say the price of your home shouldn’t exceed your salary times three — which in this example would be $210,000. Use a home affordability calculator to crunch some numbers and see how much down payment you’d need to make a $300,000 home doable. Then make a realistic call before making an offer.
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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
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.
SOHL-Q325-095
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Free Iowa Home Mortgage Loan Calculator
Iowa Mortgage Calculator
By SoFi Editors | Updated September 22, 2025
House hunting can be an exciting yet overwhelming process, often filled with stress and uncertainty. To alleviate some of the pressure, you’ll want to determine what you can afford upfront by crunching the numbers. Our Iowa mortgage calculator will help you estimate monthly payments and understand loan terms. Get tips on reducing your mortgage payment, to stretch your housing dollars without leaving your comfort zone.
Key Points
• An Iowa mortgage calculator can help you estimate monthly payments, factoring in principal, interest, and property taxes.
• Before using the calculator, learn key terms like total interest paid, and how that figure can help you compare scenarios and mortgage offers.
• One of the benefits of using the calculator is that it can help you assess how much home you can afford.
• Lenders advise that your mortgage payment come to no more than 28% of your gross monthly income.
• First-time homebuyers in Iowa may take advantage of assistance programs that help you cover the down payment and closing costs.
Iowa Mortgage Calculator
Calculator Definitions
• Home price: The home price is the agreed-upon purchase price between you and the home seller. This price might not be the same as the listing price or your initial offer. This figure is important in calculating your home loan amount.
• Down payment: The down payment refers to the upfront amount a homebuyer pays when purchasing a home, often expressed as a percentage of the total home price. Many buyers put down between 3% and 20% of the purchase price. Use a down payment calculator to help you see how different down payment amounts might affect the size of your monthly mortgage payments.
• Loan term: The loan term is the length of time that you have to repay the home loan. Mortgage terms are typically offered as either 15 or 30 years. Choose a term length that aligns with your financial goals and budget.
• Interest rate: The interest rate is essentially the fee for borrowing money. It’s expressed as a percentage of the total loan amount and it varies depending on borrower qualifications, prevailing market trends, and the specific type of mortgage loan you’ve secured.
• Annual property tax: Annual property tax is levied by local governments on land and buildings. This tax is usually expressed as a percentage of the home’s assessed value. Property taxes can vary widely, and this variance depends on both the specific location of the property and the overall value of the home itself.
• Monthly payment: The monthly payment shown by the calculator includes both the principal loan amount and the interest charged on that principal, and the calculator also factors in estimated property taxes.
• Total interest paid: Total interest paid represents the cumulative amount of interest that you will be obligated to pay over the duration of the loan. This total can be a substantial amount, particularly when dealing with loan terms that extend over longer periods.
• Total loan cost: The total loan cost is the all-inclusive amount you will repay for the home loan over its entire term. This includes both the principal amount borrowed and the accumulated interest charges.
Recommended: Do You Qualify as a First-Time Homebuyer?
How to Use the Iowa Mortgage Calculator
To help you crunch the numbers, use a mortgage calculator to see what your estimated monthly payments and total interest paid over the life of the loan would be.
Step 1: Enter Your Home Price
Enter the home price of the property you wish to purchase.
Step 2: Input a Down Payment Amount
Specify your down payment in a dollar amount.
Step 3: Choose a Loan Term
Use the dropdown window to choose the correct loan term in years (10-, 15-, 20- or 30-year).
Step 4: Enter an Interest Rate
Input your desired interest rate, indicating the figure to the second decimal point.
Step 5: Add Your Property Tax Rate
Enter the annual property tax rate. To find yours, search online for the home’s town name or ZIP code and “property tax rate.”
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator provides an estimated monthly payment based on the numbers you plug in, including home price, interest rate and loan term. You also can see overall numbers like the total interest, and the total loan cost. Play with the variables, like the price of home you’re eyeing, and interest rate, and you’ll see how these factors affect your payments and the cost of the loan. When you go house hunting, use this information to help you compare loan terms that fit your budget.
Deciding How Much House You Can Afford in Iowa
The median sale price for all home types in Iowa was $252,300 as of late 2025. Lenders advise a mortgage payment of no more than 28% of gross monthly income. Let’s say you’re looking at a home valued at $250,000 and plan to put down 20% ($50,000) on a 30-year mortgage at 7.00%. Your monthly mortgage payment would be about $1,331. Remember that your total debt payments should stay within 36% of your gross monthly income.
Another way to get a clear picture of what your budget can bear is to go through the mortgage preapproval process with a lender. You’ll provide some detailed financial information, they’ll check your credit score and assess your stats and if you qualify, you’ll be preapproved for a loan amount.
A home affordability calculator can also help you estimate what you can afford relative to your income.
Recommended: Average Monthly Expenses for One Person
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a iowa to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount (the amount you borrow to buy the home) and the interest charged. Our Iowa mortgage calculator also factors in property tax. If your down payment is less than 20%, you would also need to pay for private mortgage insurance (PMI). Some buyers also pay homeowners association (HOA) fees through monthly payments.
Homes purchased with a loan backed by the Federal Housing Administration (FHA) will have both upfront and annual mortgage insurance premium costs, so if you’re exploring an FHA loan, use an FHA mortgage calculator. If you are considering a U.S. Department of Veterans Affairs (VA) mortgage, look into a custom VA mortgage calculator.
Cost of Living in Iowa
Cost of living is a helpful benchmark because it indicates how much money it takes for you to maintain a basic standard of living in a given place. For instance, a dollar spent in Des Moines, Iowa would go further than a dollar spent in a major city like New York. Most buyers in Iowa won’t need a jumbo loan, which is a loan used to finance properties beyond conventional conforming loan limits.
To help you compare the cost of living across Iowa, the following chart shows the figures for some larger cities in the state. A cost of living index (COLI) above 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive. Iowa’s 2024 COLI was 89.7 and nearby Missouri’s was 89.0, according to the Council for Community and Economic Research’s Cost of Living Index. A few cities in Iowa, like Davenport, Sioux City, and Waterloo, even landed on the best affordable places in the U.S. list.
| Iowa Cities’ Cost-of-Living Stats | |
|---|---|
| Ames | 94.6 |
| Des Moines | 85.8 |
| Dubuque | 91.0 |
| Mason City | 93.1 |
Source: Council for Community and Economic Research’s Cost of Living Index.
Recommended: The Cost of Living in the U.S.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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
Understanding how to manage your mortgage payments is key to financial peace of mind. Fortunately, there are several tips to help you reduce your monthly mortgage burden.
• Request your lender cancel your PMI payments once you’ve built 20% of your home’s original value in equity.
• Recast your mortgage by making a large extra payment on your loan. Your lender will recalculate your monthly payments based on the new, lower principal balance. You keep your original interest rate and loan term.
• Appeal high property taxes. If you believe your home’s value has been overestimated, leading to higher property taxes than you think are fair, you can challenge the assessed value of your home with your local tax authority.
• Consider loan modification during financial hardship. Ask your lender if you can change the original terms of your loan, like the interest rate, loan term, or monthly payment amount, to help you avoid foreclosure.
• Refinance to a longer term, like 30 years, to lower your payments. For example, if you have a 15-year mortgage, refinancing to a 30-year term will spread your remaining loan balance over more payments, making each individual monthly payment smaller, even if your interest rate stays the same or is slightly higher.
• Shop for cheaper homeowners insurance by bundling policies. You may qualify for a discount if you purchase both a home and auto policy from the same provider.
Iowa First-Time Homebuyer Assistance Programs
If you’re buying your first home, there’s help available through Iowa first-time homebuyer assistance programs. To qualify, you must not have owned a primary residence within the past three years. These programs offer financial aid to cover initial costs such as the down payment, closing costs, or both.
For example, the Iowa Finance Authority provides down payment assistance programs and low-interest loans to eligible homebuyers. These programs can make homeownership more accessible and reduce the financial burden of entering the housing market. Use the Iowa mortgage calculator to see how these assistance programs can impact your monthly payments and overall affordability.
The Takeaway
Using an Iowa mortgage calculator is an essential step in the home-buying process. These tools help you estimate monthly payments, understand the impact of different down payment amounts, and compare various loan terms and interest rates. By inputting your specific financial details, you can get a clearer picture of what you can afford and make informed decisions about your mortgage. Whether you’re a first-time homebuyer or looking to refinance, these calculators provide valuable insights to help you navigate the complexities of homeownership and achieve your financial goals.
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.
FAQ
What is a mortgage payment?
A mortgage payment includes principal and interest on a mortgage loan used to purchase a home or other property. If you put down less than 20% on the property, the payment will likely also include PMI. Some lenders also roll property taxes, homeowners insurance costs, and even homeowners association dues into the monthly payment. Understanding which of these components are part of your loan can help you budget more effectively.
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly affects your mortgage interest rate. A higher score generally leads to better rates and loan terms, while a lower score may result in higher rates or the need to explore government-backed loans.
How much should I put down on a mortgage?
A down payment of at least 20% can help you secure better loan terms and avoid private mortgage insurance. However, most homebuyers put down much less: as little as 3% for first-time buyers. Consider your financial situation to determine the optimal down payment amount.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term offers lower monthly payments but higher total interest. A 15-year term has higher monthly payments but could save you thousands in interest. Deciding which term to choose is dependent on your financial goals and budget.
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.
SOHL-Q325-087
Get prequalified in minutes for a SoFi Home Loan.
Free Indiana Home Mortgage Loan Calculator
Indiana Mortgage Calculator
By SoFi Editors | Updated September 15, 2025
Getting a mortgage in Indiana is easier when you’ve done your homework. Put a few basic facts into this Indiana mortgage calculator and you’ll learn the monthly payment amount and total interest cost for your home purchase. You can also use the calculator to try out different scenarios to find the home price, down payment, and interest rate that fit your budget and goals.
Key Points
• An Indiana mortgage loan calculator helps you estimate the monthly and total costs of borrowing money to buy a home.
• In general, your mortgage payment should not exceed 28% of your gross monthly income.
• The calculator includes principal, interest, and estimated property tax.
• Extending the loan term can reduce monthly payments, making home buying more affordable.
• First-time homebuyer programs in Indiana offer down payment and closing cost assistance.
Indiana Mortgage Calculator
Calculator Definitions
• Home price: The home price is the agreed-upon purchase price with the home seller. This may differ from the listing price or your initial offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price, typically anywhere from 3% to 20%. A larger down payment can lower your monthly mortgage payments and eliminate the need for private mortgage insurance (PMI). Down payment assistance programs can help cover this cost.
• Loan term: The loan term is the length of time — typically 15 or 30 years — you have to repay the mortgage. A 15-year fixed mortgage has higher monthly payments but costs less in interest over the loan term. A 30-year fixed mortgage has lower monthly payments, but more interest accrues over time. An Indiana mortgage calculator can help you compare how different loan terms affect your monthly payments.
• Interest rate: The interest rate is the cost of borrowing funds, expressed as a percentage of the total loan amount. It varies based on borrower qualifications, market trends, and the type of mortgage loan.
• Annual property tax: Local governments charge property tax based on your land and buildings within guidelines set by your state. You can find your property tax rate by going online and searching for the town, county, or ZIP code where the property is located and the phrase “effective property tax rate.”
• Monthly payment: The monthly payment includes the loan’s principal and interest. This calculator also includes property taxes. Homeowners insurance and homeowners association fees may also be included in payments.
• Total interest paid: The total interest paid represents the amount of interest you will pay over the life of your home loan. A larger down payment, lower interest rate, or shorter loan term can reduce this amount.
• Total loan cost: The total loan cost represents the entire amount you will pay for the loan, including both the principal borrowed and the accumulated interest.
How to Use the Indiana Mortgage Calculator
Step 1: Enter Your Home Price
Input the home price, which is the agreed-upon purchase price with the home seller.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment can reduce monthly payments and total interest paid. Use a down payment calculator to determine the right figure for your budget.
Step 3: Choose a Loan Term
Select the length of time — anywhere from 10 to 30 years — you would like to repay the mortgage. A longer term means lower monthly payments but more interest over time.
Step 4: Enter an Interest Rate
Enter your estimated interest rate to the second or third decimal point. A lower rate reduces monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the home’s property tax rate as a percentage. For example, type 1.2 if the rate is 1.2%.
Benefits of Using a Mortgage Payment Calculator
Using a mortgage payment calculator is a great way to help you figure out how much house you can afford. An Indiana mortgage calculator provides an estimated monthly payment based on the numbers you plug in, including home price, interest rate, and loan term. The tool is particularly helpful if you’re buying your first home.
You also can see overall numbers like total interest and the total loan cost. Play with the variables, like the price of home you’re eyeing, and interest rate, and you’ll see how these factors affect your payments. When you go house hunting, use this information to help you compare loan terms that fit your budget based on the type of mortgage loan you pursue.
Recommended: The Cost of Living in the U.S.
Deciding How Much House You Can Afford in Indiana
In Indiana, the median home sale price in mid-2025 was around $280,000 — well below the national median of around $443,000, according to Redfin. Lenders suggest a mortgage payment shouldn’t exceed 28% of your gross monthly income, so if you were looking to afford a $280,000 home, factoring in a 20% down payment ($56,000), a 30-year mortgage at 7.00% interest, and the average Indiana property tax rate (0.77%), you’d need to earn an annual income of about $64,000. Lenders also recommend total debt payments stay under 36% of your gross monthly income, so in this case, other monthly debts shouldn’t exceed $428.
If you are looking into purchasing a very 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, which is set by the Federal Housing Finance Agency (FHFA).
Use a home affordability calculator for an estimate of how much house you can afford based on your income. Going through the mortgage preapproval process with a lender can also help you estimate what loan size and type 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 indiana to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are the principal amount borrowed and the interest charged. This Indiana home mortgage calculator factors in property taxes, which are often included in the monthly payments. Your payment could also include PMI, home insurance, or homeowners association (HOA) fees, depending on your situation.
If you’re looking into a home loan guaranteed by the Federal Housing Administration (FHA), then use an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is the right tool if you’re seeking a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Indiana
The cost of living reflects how much you can afford in a certain area. For instance, a dollar spent in Indianapolis, Indiana would go further than a dollar spent in a major city like New York or Los Angeles. Higher cost of living areas typically have higher average home prices, utilities, home maintenance, transportation, and other necessities.
You can refer to the cost of living index (COLI) to figure out how much money it takes for you to maintain a basic standard of living in a given place. For example, a COLI higher than 100 means the region is more expensive than the national average, while a COLI below 100 indicates it is less expensive.
Indiana’s 2024 COLI was 91.0, according to the Council for Community and Economic Research’s Cost of Living Index, and Indianapolis had a COLI of 88.8. Indiana falls in line with other midwestern states like Illinois and Ohio, with 2024 COLI of 94.7 and 94.3, respectively. On the other hand, New York and California, with COLIs of 125.1 and 142.3, respectively, are much more expensive places to live.
For further comparison, you can refer to this chart, which shows COLI figures for some of the major cities in Indiana.
| Indiana Cities’ Cost-of-Living Stats | |
|---|---|
| Bloomington | 99.8 |
| Evansville | 93.5 |
| Indianapolis | 88.8 |
| South Bend | 90.2 |
Source: Council for Community and Economic Research’s Cost of Living Index.
If you’re considering buying a home in one of the best affordable places in the U.S., you now know how to compare cost of living numbers to help you decide.
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Tips on Reducing Your Mortgage Payment
Since your mortgage payment is likely your biggest recurring bill, even a small reduction can free up funds for other expenses or to build your emergency savings. You might be able to lower your mortgage payment by following some of these tips:
• Once you’ve built 20% equity in your home, request that your lender cancel PMI payments to save on unnecessary costs.
• Make additional payments toward the principal to decrease both the term of your loan and the total interest paid over its lifetime.
• Take a closer look at your property taxes. If you think you’re paying too much, go to your county assessor and ask about the appeals process.
• Look into bundling with your insurance provider. Sometimes if you purchase more than one policy with them — both a homeowners and auto policy, for example — they may offer a discount.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
• If you are experiencing financial difficulties, consider a loan modification. A modification changes the terms of a loan, like having a new repayment timetable, a lower interest rate, or a switch from an adjustable rate to a fixed rate. Be prepared to show proof of financial hardship with bank statements or tax returns.
Recommended: Average Monthly Expenses for One Person
Indiana First-Time Homebuyer Assistance Programs
If it’s your first time buying a home, you will be happy to know that there are programs that can make homeownership more achievable by reducing the upfront financial burden. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years.
Look into down payment assistance programs, which can provide financial aid for the down payment, closing costs, or both, making homeownership more accessible. The Indiana Housing and Community Development Authority offers several programs for first-time homebuyers in Indiana. Check with local housing authorities or financial institutions to determine your eligibility in Indiana.
The Takeaway
Using an Indiana mortgage calculator is a valuable step in the home-buying process. It helps you estimate monthly payments, understand mortgage components, and make informed decisions about your home loan. By using this tool, you can better navigate homeownership and align your budget with your goals. The Indiana mortgage calculator can be a helpful resource for both first-time homebuyers in Indiana or those who are looking to refinance.
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.
FAQ
How much should my down payment be on a mortgage?
How much you decide to put down is an individual decision, so take into account your financial situation and goals and use an Indiana mortgage calculator to run the numbers. If you are buying your first home, you can sometimes make a down payment as little as 3% toward the purchase price of a home. A larger down payment can result in lower monthly mortgage payments and potentially better loan terms.
Should I choose a 30-year or 15-year mortgage term?
When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but more interest over time, while a 15-year term has higher monthly payments but less interest paid overall. Assess your financial goals and budget when opting for a certain term.
How can I get a lower mortgage interest rate?
For the lowest mortgage interest rate, work on improving your credit score by aiming for 700 or higher (this is well over the 620 credit score you’ll need to qualify for a home loan). Go through the prequalification process with a variety of lenders to see how low a rate you might be able to obtain. A higher down payment may help, too, if you can afford to make one.
How much income do you need for a $280,000 mortgage?
You’d need to earn an annual income of about $64,000 for a $280,000 mortgage, factoring in a 20% down payment ($56,000), a 30-year mortgage at 7.00% interest, and the average Indiana property tax rate (0.77%). Lenders also recommend total debt payments stay under 36% of your gross monthly income, so in this case, other monthly debts shouldn’t exceed $428.
SoFi Mortgages
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*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.
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