How to Use the Boston Mortgage Calculator

Components of a Mortgage Payment

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

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

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

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The Cost of Living in Boston

Boston is one of the most expensive cities to live in the country. Because its cost of living is much higher than the national average, you will see that your dollar doesn’t go as far when it comes to average home prices, utilities, home maintenance, transportation, and other necessities.

In fact, Massachusetts ranks among the highest priced states to live, according to the Council for Community and Economic Research’s Cost of Living Index (COLI), which assigns COLI numbers higher than 100 to places that are more expensive than the national average, and a COLI below 100 to those less expensive. Massachusetts’s 2024 COLI was 141.2, and Boston’s was 145.9.

While Boston is among the most expensive cities, it’s still more affordable than places like San Francisco (166.8) and New York City (the borough of Manhattan had a 2024 COLI of 233.6).

This chart highlights cost of living numbers for major expenses in Boston:

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

Although Boston is a very popular destination for its culture and beauty, its high cost of living kept it off the best affordable places in the U.S. list.

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

Tips on Reducing Your Mortgage Payment

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

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

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

•  Review your property taxes regularly. If you think your property taxes are too high, the Boston City Assessing Department can inform you about the appeals process.

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

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

Boston’s First-Time Homebuyer Assistance Programs

If you’re buying your first home in Boston, there are down payment assistance programs available to help you cover the initial costs. To qualify, you must not have owned a primary residence within the past three years. These programs can provide financial aid for the down payment, closing costs, or both, making homeownership more accessible.

The Bay State offers a variety of programs as a first-time buyer in Massachusetts. Each program has certain criteria related to income and purchase price limits. For example, My Mass Mortgage offers 30-year fixed interest rate loans to low- and moderate-income first-time buyers in Massachusetts.

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

The Takeaway

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

How to Use the Omaha Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal and interest. The principal is the portion of the payment that goes toward paying down the loan balance, while the interest is the cost of borrowing the money. Additionally, your monthly payment may include property tax, which is typically divided into monthly installments and added to your mortgage. If your down payment is less than 20%, you may also need to pay for PMI. Home insurance and homeowners association (HOA) fees are also sometimes factored into the loan payment.

If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums. A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

The Cost of Living in Omaha

The cost of living significantly impacts your budget when you’re buying a home, and higher-cost areas tend to have higher home prices but also higher costs for utilities, transportation, health care, and more. The overall cost of living in Omaha is significantly less than the average cost of living in the U.S. It’s no surprise then, that Omaha landed on a list of the best affordable places in the U.S. Here’s a closer look at how Omaha’s costs rank on a scale where the U.S. average equals 100.

Omaha’s First-Time Homebuyer Assistance Programs

If you’re buying your first home in Omaha, there’s a down payment assistance program available to help cover the initial costs involved. The Nebraska Investment Finance Authority’s Homebuyer Assistance Program provides two mortgages that, together, can allow eligible buyers to purchase a home with just $1,000 down. Other programs help buyers in certain counties or provide aid to active members of the military who are also first-time homebuyers in Nebraska.

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

Tips on Reducing Your Mortgage Payment

After you buy a home in Omaha, there are still ways to lower your monthly mortgage payment. Consider these options.

• Consider a mortgage recast. You’ll make a lump-sum payment toward the principal, and request that the lender recalculate your monthly payments based on the new, lower balance.

• Ask the lender to drop PMI as soon as you reach 20% equity in your home. This can be achieved through regular payments or home appreciation, so monitor your home’s value and periodically do the math to figure out if you’ve hit 20%.

• If you believe your property taxes are too high, you have the right to appeal your assessment. If you’re successful, you may be able to lower your tax bill. (If you aren’t successful, however, you risk a higher assessment.)

• If you are experiencing financial hardship, you can ask your lender to modify your loan. This adjustment can make your monthly payments more manageable and less burdensome, though it might result in increased interest costs over the long haul.

• To potentially reduce your monthly mortgage payment, take the time to shop around for a lower homeowners insurance rate.

The Takeaway

Using an Omaha mortgage calculator can provide valuable insights into the potential cost of a home. By understanding how your down payment amount, interest rate, and loan term affect your monthly payments, you can better plan for your homebuying journey and choose the mortgage that feels right for you.

How to Use the Cincinnati Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal, interest, and property tax. The principal is the amount you borrow to purchase the home, while the interest is the cost of borrowing that principal. With each payment you make on a home loan, an increasing portion will go toward paying down the principal, gradually reducing the overall loan balance. Property tax, which varies by location, is typically a percentage of the home’s assessed value. In Cincinnati, the property tax rate is around 1.6%.

Your monthly payment may also include other costs, such as homeowners insurance and homeowners association (HOA) fees, if applicable. And if your down payment is under 20% of the home price, a fee for PMI will also be part of your monthly mortgage bill.

The Cost of Living in Cincinnati

The cost of living is a key factor when buying a house, because it determines if you can afford the mortgage payments alongside other essential expenses like groceries, transportation, and health care.

The cost of living in Cincinnati is below the national average. The city has a cost of living index of 96.1 (the average cost of living in the U.S. is 100 on this scale). The chart below shows how costs break down across different categories. According to MIT’s Living Wage Institute, two working adults (working full-time) with two children would need to each earn at least $27.09 an hour to support themselves in Cincinnati.

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Cincinnati’s First-Time Homebuyer Assistance Programs

If you’re thinking about buying your first home in Cincinnati, you can explore and take advantage of Ohio first-time home-buying assistance programs to help cover the initial costs associated with homeownership. Anyone who hasn’t owned a primary home in the past three years is considered a first-time homebuyer. These programs can provide significant financial aid specifically intended for the down payment, closing costs, or both, effectively making homeownership more accessible and affordable.

Most down payment assistance programs are run by the Ohio Housing Finance Agency (OHFA), but some towns and counties run their own programs, so it’s a good idea to also explore your local options.

Recommended: First-Time Homebuyer Guide

Tips on Reducing Your Mortgage Payment

Even after you’ve already purchased a home, there are strategies to lower your monthly mortgage payment:

•  Remove PMI: If you made a down payment of less than 20%, you are likely paying PMI. Once you’ve reached 20% equity in your home, you can ask your lender to cancel your PMI.

•  Recast your mortgage: This involves making a large, one-time principal payment and having your lender re-amortize the loan. Your interest rate and loan term remain the same, but your monthly payment will be lower to reflect the new, smaller principal balance.

•  Appeal your property taxes: Your property taxes are often included in your monthly payment. If you believe your home’s assessed value is too high, you can appeal the tax assessment. Compare your home’s value to similar properties in your area to build your case.

•  Explore refinancing: If interest rates have dropped since you bought your home, you may be able to secure a loan with a lower rate. When comparing costs, be sure you factor in the closing costs on a new loan.

•  Consider loan modification: If you experience financial difficulties, your lender may agree to modify the loan. For example, your lender might lower your interest rate, extend the loan term, or reduce the principal balance to make your monthly payments more manageable.

The Takeaway

Buying a home in Cincinnati can be both exciting and overwhelming, but having the right tools in place can make a big difference. A Cincinnati mortgage calculator provides a clear estimate of your monthly payments, total interest, and total loan cost, so you can see exactly how owning a home will impact your finances.

How to Use the Memphis Mortgage Calculator

Components of a Mortgage Payment

The main components of a mortgage payment are principal and interest. The principal is the portion of the payment that goes toward paying down the loan balance, while the interest is the cost of borrowing the money. Your monthly payment may also include property tax, which varies by location. Other components might include PMI or homeowners association (HOA) fees, depending on your specific loan and property.

If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), you may want to use a FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums. If you’re looking at a loan backed by the U.S. Department of Veterans Affairs, consider using a VA mortgage calculator.

The Cost of Living in Memphis

The general cost of living is a key factor when buying a house, because it directly impacts your overall financial situation and ability to afford monthly expenses beyond just the mortgage payment, such as groceries, transportation, and health care.

The cost of living in Memphis is below the national average. The city has a cost of living index of 89.8 (the average cost of living in the U.S. is 100 on this scale). The chart below shows how costs break down across different categories. According to MIT’s Living Wage Institute, two working adults (working full-time) with two children would need to each earn at least $23.84 an hour to support themselves in Memphis.

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Memphis’s First-Time Homebuyer Assistance Programs

If you’re thinking about buying your first home in Memphis, you can explore Tennessee first-time home-buying assistance programs to help cover the initial costs associated with homeownership. Anyone who hasn’t owned a primary home in the past three years is considered a first-time homebuyer. These programs can provide significant financial aid specifically intended for the down payment, closing costs, or both, which can make homeownership much more accessible and affordable.

Many down payment assistance programs are run on the state level, but the city of Memphis also runs their own assistance programs, so it’s a good idea to also explore your local options.

Recommended: First-Time Homebuyer Guide

Tips on Reducing Your Mortgage Payment

Even after you close on a home in Memphis, there may be ways to lower your monthly mortgage payments. Here are some strategies to consider:

•  Drop PMI: If your original down payment was less than 20%, you may be paying PMI. Once you’ve built up 80% equity in your home, you can request to have PMI removed. Getting rid of this charge can cut a significant amount from your monthly payment.

•  Consider a mortgage recast: With mortgage recasting, you make a larger lump sum payment toward your principal balance. Your lender then recalculates your monthly payment based on the lower balance, while keeping your existing loan terms and interest rate the same. This can be a smart option if you come into extra funds, such as a bonus, tax refund, or inheritance.

•  Appeal your property taxes: If you believe your assessment is too high compared to similar properties, you can appeal the assessment with your county auditor’s office. A successful appeal could lower your property tax bill and, in turn, reduce your monthly payment.

•  Look into loan modification: If you’re struggling to make payments, your lender may be willing to adjust your loan terms through a modification. This could involve extending your repayment period, reducing your interest rate, or restructuring your loan in another way to bring down your monthly obligation.

•  Shop for a lower rate: If mortgage rates have fallen or your credit has significantly improved since you originally financed your home, it can be worth looking into a home refinance. This could potentially reduce your monthly payments and save you thousands over the life of the loan.

The Takeaway

Buying a home in Memphis doesn’t have to feel overwhelming when you have the right resources in place. A mortgage calculator provides a way to see how home price, down payment, loan term, interest rate, and property tax all fit together to shape your budget. It also allows you to explore different options, compare how small changes affect your payments, and better understand the true long-term cost of your loan. With clear numbers in front of you, you can move forward confidently, knowing your dream home is not only within reach but also financially sustainable.