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Getting a mortgage in Rhode Island is a big step toward your home purchase. Use this mortgage calculator to figure out the monthly payment amount and total interest cost for your home purchase. Try out different purchase prices and down payments to find out how each of these factors affect the total loan price. Whether you’re a first-time homebuyer in Rhode Island or a seasoned property owner, the calculator provides valuable insights to help you come up with figures that are right for your budget and goals.
Key Points
• Use the Rhode Island mortgage calculator to help you estimate the monthly payment and total cost of borrowing money to buy a home.
• Learn key terms like total interest paid, and how that figure can help you compare scenarios and mortgage offers.
• In general, your monthly mortgage payment should not exceed 28% of your gross monthly income.
• Rhode Island 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 homeowner insurance provider to get a discount.
Rhode Island Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price agreed upon 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 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 more interest paid over time. A Rhode Island 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 your credit score, market trends, and the type of mortgage loan.
• Annual property tax: 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 loan’s principal and interest. This 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 Rhode Island Mortgage Calculator
Step 1: Enter Your Home Price
Enter the agreed-upon cost of the property.
Step 2: Select a Down Payment Amount
Specify your down payment. Refer to a down payment calculator to help you understand the impact of different down payment amounts on your monthly mortgage bills. A larger down payment can reduce your monthly costs by eliminating the need for PMI.
Step 3: Choose a Loan Term
Select the duration over which you will repay your mortgage. Common terms include 30-year and 15-year fixed-rate mortgages. A 30-year fixed mortgage offers lower monthly payments than a 15-year mortgage at the same rate, but results in more interest paid over the life of the loan.
Step 4: Enter an Interest Rate
Input your desired interest rate to the second or third decimal point, such as 6.75%. The interest rate significantly affects your monthly payments and the total interest you’ll pay over the life of the loan.
Step 5: Add Your Annual Property Tax
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
A Rhode Island mortgage calculator helps you estimate how much house you can afford and provides a clearer picture of what your monthly costs would be. It estimates these payments based on loan amount, interest rate, and term, and factors in the property taxes you’ll pay as well. A Rhode Island mortgage calculator is particularly helpful if you’re buying your first home, as it allows you to play with different scenarios (for example by raising or lowering the down payment amount). Using a mortgage calculator allows you to consider multiple scenarios and avoid surprises.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), try using an FHA mortgage calculator, which factors in both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator will be useful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Deciding How Much House You Can Afford
In Rhode Island, the median home sale price in mid-2025 was $516,000, according to Redfin. That’s almost 17% higher than the national median home sale price of $443,000. Meantime, Rhode Island has some of the highest property taxes in the U.S., so you will want to consider these factors as you decide how much you can afford.
Lenders suggest a mortgage payment not exceed 28% of your gross monthly income. You’d need to earn an annual income of about $114,557 if you were looking to afford a $500,000 home, with a 20% down payment ($103,200), a 30-year mortgage at 7.00%, and an average Rhode Island property tax rate (1.39%).
Because lenders typically recommend that you keep total debt payments under 36% of your gross monthly income, your other monthly debts shouldn’t exceed $764 in this case.
Another way to determine your housing budget in Rhode Island is to work backward from your income, using a home affordability calculator, which will take into consideration other debts you may have, such as a car loan or student loan payment.
You could also go through the mortgage preapproval process with a lender. You would provide detailed financial information and the lender would preapprove you, if you qualify, for a loan amount.
A mortgage payment includes principal (the amount borrowed) and interest (borrowing cost). This Rhode Island mortgage calculator also includes property tax, because many lenders like taxes to be paid as part of the monthly payment. If your down payment is below 20%, you’ll likely also pay PMI. Some lenders also include home insurance and HOA fees in the payment.
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 Rhode Island
The cost of living in Rhode Island is relatively high compared to the average in the U.S., making it important to carefully consider your budget when buying a home. Basically, the cost of living reflects how much you can afford in a certain area, so a dollar spent in Providence 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.
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.
Rhode Island’s 2024 COLI was 110.6, according to the Council for Community and Economic Research’s Cost of Living Index, in line with nearby Connecticut’s COLI, which was 112.7 but more affordable than neighboring Massachusetts, which has one of the highest cost of living figures at 141.2. For context, New York and California have some of the highest 2024 COLIs of 125.1 and 142.3, respectively.
To further help you understand the cost of living in Rhode Island, Providence’s 2024 COLI was 112.2, while nearby Boston’s was 145.9 and Hartford’s was 101.4. Consider the Rhode Island cities of Ashaway, Coventry, and Warwick as you look at some of the best affordable places in the U.S. for homeownership.
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
As you explore your monthly bills, you may wonder how you can reduce your mortgage payment. Here are some tips:
• Request that your lender drop PMI once you reach 20% home equity.
• Recast your mortgage by making a lump-sum payment toward the principal and asking your lender to recompute your payments.
• Review your property taxes regularly. If you think your property taxes are too high, go to your city or town assessor’s office (or local Board of Tax Assessment Review), and ask about the appeals process.
• Consider requesting a loan modification if you are experiencing financial hardship.
• Explore a mortgage refinance if interest rates are lower than your current rate. (Don’t forget to factor in closing expenses when you compare overall costs.)
• Extend your loan term to reduce the amount of your monthly payment.
• Shop for cheaper homeowners insurance by adjusting your deductible or bundling policies.
Rhode Island First-Time Homebuyer Assistance Programs
If you’re buying your first home, financial help is available. Pursue Rhode Island first-time homebuying assistance programs. Check with RIHousing, the state agency that administers housing programs, some of which provide low-interest mortgage loans and other financial assistance. Keep in mind, to qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years.
A Rhode Island mortgage calculator can empower you to make smart home purchasing decisions by showing you the financial implications of different scenarios. Especially for first-time homebuyers, this tool can help you make well-informed choices about your home loan options and ensure that your mortgage fits comfortably within your budget.
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.
A mortgage payment is typically a monthly payment and includes principal and interest. It sometimes includes charges for property taxes and homeowners insurance, too. If a borrower is required to have mortgage insurance, that may also be included. The principal reduces the outstanding loan balance, while interest is the cost of borrowing.
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. You will need a 620 score to qualify for a home loan, and typically 700 and above to qualify for the lowest interest rates.
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 much is the payment on a $500,000, 30-year mortgage?
The cost of a $500,000 mortgage with a 30-year term will depend on your interest rate and a down payment. At an interest rate of 6.00%, and a down payment of 20% ($100,000), your monthly payment would be $2,398. This estimate includes principal and interest but not property taxes, insurance, or other fees.
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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.
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.
