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A Raleigh mortgage calculator is a useful tool for prospective homebuyers, helping you to estimate monthly payments and understand the financial implications of different home loan scenarios. By inputting the home price, down payment, loan term, interest rate, and local property tax rate, users can get a clearer picture of their potential mortgage costs. Learn how to use this free Raleigh mortgage calculator to your advantage in this guide.
Key Points
• A Raleigh mortgage calculator helps prospective homebuyers estimate monthly payments and determine what is a good fit for their budget.
• The down payment, typically ranging from 3% to 20% of the home’s purchase price, can significantly impact monthly payments and the total interest paid.
• Down payment assistance programs are available in Raleigh to help some first-time homebuyers reduce initial costs.
• The loan term is between 10 and 30 years, with shorter terms leading to higher monthly payments but less interest paid overall.
• The interest rate, influenced by credit history and market trends, is a critical factor in determining monthly mortgage payments.
Raleigh Mortgage Calculator
Calculator Definitions
• Home price: This is the purchase price you have agreed upon with the home seller. This figure is needed to determine the size of the home loan.
• Down payment: The down payment is how much you’ll pay upfront, typically from 3% to 20% of the purchase price. To avoid paying for private mortgage insurance (PMI), you’ll need a 20% down payment. A jumbo loan usually requires at least 10% down.
• Loan term: The loan term represents the length of time you have to repay the mortgage, anywhere from 10 to 30 years. A shorter term typically has higher monthly payments but less interest over the life of the loan, while a 30-year term offers lower monthly payments but more interest.
• Interest rate: The interest rate represents the cost of borrowing money, expressed as a percentage of the total home loan amount. The type of mortgage loan you choose and your credit score will greatly impact the rate you’re offered.
• Annual property tax: Your property tax rate will play a significant role in determining the total monthly mortgage payment. In Wake County, where Raleigh is located, the property tax rate is .715%. To find your property’s rate, search by ZIP code, town name, or county name.
• Total monthly payment: The total monthly payment for a home typically includes the principal loan amount and the interest accrued on the loan. This calculator also includes property taxes.
• Total interest paid: The total interest paid is the cumulative amount of interest you will pay over the life of your home loan.
• Total loan cost: The total loan cost represents the all-in amount you will pay for the home loan.
How to Use the Raleigh Mortgage Calculator
Step 1: Enter Your Home Price
Type in the purchase price of the Raleigh property you play to buy.
Step 2: Select a Down Payment Amount
Choose how much of the home price you will pay upfront. To see what it takes to meet the 20% minimum needed to avoid PMI, use a down payment calculator.
Step 3: Choose a Loan Term
Select the length of time to repay the mortgage, anywhere from 10 to 30 years. A longer term lowers monthly payments but increases total interest.
Step 4: Enter an Interest Rate
Input your estimated interest rate. Lower rates reduce monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the local property tax rate as a percentage.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps homebuyers estimate affordability by calculating monthly payments based on loan amount, interest rate, and term, as well as local property taxes. If you haven’t been through the mortgage process before and are buying your first home, the mortgage calculator can be a fast, easy way to experiment with different down payment amounts or loan terms to see how they affect your costs, both in the short term and over the life of the loan.
Using a mortgage calculator will help you make informed decisions and plan for the true cost of homeownership.
Deciding How Much House You Can Afford in Raleigh
In late 2025, the median sale price of a home in Raleigh was $420,000. Let’s use that number to see how much house a buyer might be able to afford in the area. Lenders suggest that no more than 28% of your gross monthly income go toward your housing costs. To afford a $420,000 home in Raleigh with a 20% down payment, a 6.50% interest rate, and a 30-year loan term, you would need to earn $105,000. Your monthly payment, including property taxes, would be $2,374, according to the mortgage calculator. This assumes you don’t have other significant debts you’ll be paying off alongside your mortgage.
If you want to start with your annual income, factor in your debts, and find a comfy home budget that way, try using a home affordability calculator. Or if you’re into the search process and want to really pin down how much you might be able to borrow, go through the mortgage preapproval process with a lender. You’ll provide detailed financial information and the lender will tell you if you qualify for a loan, and if so, how much you might borrow and at what terms.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are principal and interest. The principal is the amount borrowed, and the interest is the cost of borrowing that money. Additionally, your monthly payment may include property tax, which can vary by location. That’s why this free mortgage calculator includes taxes. If your down payment is less than 20%, you may also have to pay for private mortgage insurance (PMI). Other potential components include homeowners insurance and homeowners association (HOA) fees.
Mortgages backed by the Federal Housing Administration have principal and interest, too. But FHA borrowers will also have an upfront and ongoing mortgage insurance premium to pay as part of their loan payment. Use an FHA mortgage calculator if you’re looking at an FHA loan. And if you’re seeking a loan backed by the U.S. Department of Veterans Affairs, use a VA mortgage calculator.
North Carolina as a whole has a cost of living that is just below the U.S. average, and Raleigh is an average North Carolina metro area. It’s not on North Carolina’s list of best affordable places in the U.S., but nor is it wildly expensive.
Cost of living significantly impacts affordability, and it’s worth taking a deeper look when you’re thinking about buying a home in an area. Here’s how subcategories of costs stack up in Raleigh, according to data from the Council for Community and Economic Research (C2ER). The average cost of living in the U.S. equals 100 on this scale. As you can see, housing and utilities in Raleigh are particularly affordable when compared to the national average.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
If you’re buying your first home in Raleigh, or haven’t owned a primary residence in the past three years, down payment assistance programs may be available to help you cover some of the initial costs. These programs provide financial aid specifically designated for the down payment, closing costs, or both. Sometimes there’s a low- or no-interest second mortgage involved, and sometimes assistance comes in the form of a grant. The NC Home Advantage Mortgage has a 30-year fixed rate and up to 3% down payment assistance.
It’s possible to be settled into your new place and still want to find ways to lower your monthly mortgage payment. If you’re feeling a budget pinch, consider these techniques:
• Drop private mortgage insurance once you have 20% equity in your home. This can be achieved through regular payments or home appreciation, so keep an eye on your home’s market value on real estate websites.
• If you receive a bonus or other windfall, mortgage recasting can be a smart financial move. You’ll make a lump sum payment toward your mortgage principal and request that your lender re-amortize the loan, resulting in a new, smaller balance and lower monthly payments.
• Consider a mortgage refinance if interest rates have declined significantly or your credit score has improved noticeably since you purchased your home.
• If you believe your property tax assessment is too high, you can appeal it. Start by researching assessments for comparable properties in your area. Make sure you have evidence to support your case.
• If you face financial hardship, you may be able to request that your lender modify your loan to make your monthly payments more manageable. Loan modifications can involve reducing the interest rate or extending the term of your loan.
• Consider shopping around for a lower homeowners insurance rate. You can potentially lower your premium by increasing your deductible amount, bundling your homeowners and auto insurance policies, or making upgrades that enhance your home’s security or storm resistance.
The Takeaway
Using a Raleigh mortgage calculator is a crucial step in understanding the financial implications of buying a home in this part of the Triangle. It helps estimate monthly payments, total interest paid, and the overall cost of the mortgage, factoring in property taxes for a more accurate estimate. Use it to try out different mortgage scenarios so that you land on the right combination of down payment amount, interest rate, and loan term for your individual situation.
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.
The median mortgage payment in Raleigh is $3,140 according to the National Association of Realtors®. Payments are very individualized, however, and what you owe can fluctuate based on factors such as the home price, the size of the down payment, interest rates, and your credit score.
What are principal and interest on a mortgage loan?
The mortgage principal is the amount you borrow from a lender to purchase the home, while the interest is the cost of borrowing. Over the course of the loan, your consistent monthly payments will gradually pay down the principal owed and also cover the interest charges. When you begin the loan, the lender will provide you with an amortization schedule, which will tell you how much of each payment will go toward the principal vs. the interest each month.
How much should I put down on a mortgage?
The amount you put down to purchase a home is a personal choice based on your financial situation. If you want to know what others are doing, data from the National Association of Realtors® can provide insight: The typical down payment for first-time homebuyers has ranged from 6% to 9% over the last couple decades and has only ever been as high as 10%. More seasoned buyers, however, tend to put down more: The typical down payment for a repeat buyer in 2024 was 23%. Look closely at your finances and make your own decision.
Should I choose a 30-year or 15-year mortgage term?
Consider your finances when choosing between a 30-year or 15-year mortgage. A 30-year mortgage offers lower monthly payments but you will pay more interest overall. A 15-year mortgage has higher payments but less interest and faster equity growth. Choose a term that yields a monthly payment you can comfortably afford.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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