If so, you are in the right place! Get started by entering your personal confirmation number below.
Received an offer from us?
If so, you are in the right place! Get started by entering your personal confirmation number below.
Leaving SoFi Website
You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
House hunting is fun, but figuring out how to pay for a house can be stressful. That’s where online tools come in handy. Just input a few numbers, and our South Dakota mortgage calculator will tell you your monthly payment and the total interest you’ll pay over the life of a home loan. This tool is particularly useful for those buying their first home, as it helps determine a comfortable budget.
Key Points
• Use a mortgage calculator to compare different scenarios and find the best combination of house price, down payment amount, interest rate, and loan term.
• Down payment assistance programs can help first-time homebuyers reduce initial financial burden.
• Consider the impact of property taxes, which can vary widely by location.
• Shorter mortgage terms have higher monthly payments but cost less in interest overall.
• A lower interest rate can significantly reduce monthly payments and total loan cost.
South Dakota Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. It may differ from the listing price and your initial offer. This figure plus the down payment amount will determine the size of your home loan.
• Down payment: The down payment represents the amount the homebuyer initially pays upfront when purchasing a property. Most buyers put down between 3% and 20% of the home’s value.
• Loan term: The loan term is the duration over which you will repay your mortgage, anywhere from 10 to 30 years. A 15-year fixed loan means higher monthly payments but less interest paid over the life of the loan. A 30-year fixed loan offers lower monthly payments and more financial flexibility. The best choice depends on your financial situation and long-term goals.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and the type of mortgage loan. A higher credit score can lead to a lower interest rate, reducing monthly payments and the total cost of the loan. Shop around for the best rates to ensure favorable terms.
• Annual property tax: Property tax is levied by local governments on both land and buildings; it’s typically expressed as a percentage of the home’s assessed value.
• Monthly payment: The South Dakota calculator helps you determine what you would pay toward the principal and interest each month. This calculator’s payment includes the principal, interest, and property taxes.
• Total interest paid: The total interest paid is the amount of interest you will pay over the entire life of the loan. This figure can be substantial, especially for longer loan terms.
• Total loan cost: The total loan cost is the all-in amount you will repay for the loan, including principal and interest. A longer loan term may result in lower monthly payments but a higher total loan cost due to more interest paid over time.
How to Use the South Dakota Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price of the property.
Step 2: Select a Down Payment Amount
Choose the down payment you plan to pay upfront. A down payment calculator can show you what 20% would be.
Step 3: Choose a Loan Term
Select the time you’ll need to repay the home loan. Common terms are 15 and 30 years.
Step 4: Enter an Interest Rate
Input the interest rate you think you can obtain to the second or third decimal point. This affects your monthly payment and total loan cost.
Step 5: Add Your Property Tax
Enter the percentage of your home’s value that you will pay each year in property taxes. Either search the property’s ZIP code or county and “effective local tax rate” or use the South Dakota average of .99%
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps estimate how much house you can afford. It calculates monthly payments based on loan amount, interest rate, and term. Particularly if you are buying your first home, it can be helpful to compare different down payment amounts, interest rates, and loan terms to see how they affect payments.
If you’re exploring a home loan backed by the Federal Housing Administration, an FHA mortgage calculator will factor in the upfront and ongoing mortgage insurance premium that comes along with this borrowing method. Similarly, a VA mortgage calculator is useful for those considering a loan backed by the U.S. Department of Veterans Affairs.
Deciding How Much House You Can Afford in South Dakota
South Dakota had a median home sale price of $345,500 in mid-2025, so let’s take a look at how a monthly payment for a home at that price would shape up. Lenders generally advise mortgage payments not to exceed 28% of gross monthly income. If you bought a $345,500 home with 20% down ($69,100) and a 30 year mortgage with an interest rate of 7.00%, your monthly payment, including property taxes and home insurance, would be around $1,850. To afford this, you would need an annual income of roughly $80,000. This assumes you don’t have other significant debts. If you do, you would need to earn more.
The mortgage calculator will help you assess how much house you can afford based on monthly costs. If you want to work backward to your home budget from your income, try using a home affordability calculator, which will take into account all your debts (car payment, student loan, etc.).
Or if you’re seriously moving toward a home purchase and ready to take the next step, go through the mortgage preapproval process with a lender. You’ll provide detailed financial information and learn whether you might be approved for a loan and, if so, for what amount and at what rate.
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
A mortgage payment includes principal (borrowed amount) and interest (borrowing cost, as a percentage of the loan amount). This mortgage calculator includes these elements as well as property tax. A monthly mortgage payment might also include homeowners insurance. If your down payment is under 20%, you’ll likely pay for private mortgage insurance (PMI) through your monthly bill as well. Homeowners association (HOA) fees, for services like landscaping, may also be included.
Cost of Living in South Dakota
The cost of living in your area will significantly affect how much you can afford to spend on a home. South Dakota on the whole is among the best affordable places in the U.S., with a cost of living index of 91.9 (versus a U.S. average of 100). Higher cost of living areas typically have higher average home prices, as well as increased costs for utilities, home maintenance, transportation, and other necessities.
Pierre and Rapid City, two main urban areas, are both below 95% of the average cost of living in the U.S. And Sioux Falls, Vermillion, and Rapid City are among the country’s most affordable places to live. So if you’re shopping for a home in South Dakota, rest assured you’re in a good spot for affordability.
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
Using a mortgage calculator is a smart move, but you may still feel the pinch of high costs once you purchase a home. Fortunately, there are ways to lower your mortgage payment after you purchase. Here are some potential avenues to pursue:
• Request that your lender drop PMI as soon as you reach 20% equity.
• Recast your mortgage by making a lump-sum principal payment and asking your lender to recompute your payments.
• Appeal your property taxes if you feel they are too high. Use caution though: Sometimes requesting the assessor take a closer look can result in increased taxes.
• Undertake a mortgage refinance if current interest rates are lower than the one you have. Make sure you look at closing costs when deciding whether or not to refinance.
• Lower your homeowners insurance by increasing your deductible or bundling policies.
South Dakota First-Time Homebuyer Assistance Programs
If you’re buying your first home, there are several assistance programs available to help cover initial costs. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years. Down payment assistance programs provide financial aid for the down payment, closing costs, or both.
Many South Dakota first-time homebuyer programs are run by the state’s housing development authority. They can make homeownership in the Mount Rushmore State more accessible and affordable.
When determining how much house you can afford in South Dakota, use a mortgage calculator to consider how the home price, down payment amount, loan term, interest rate, and property taxes affect your monthly costs. Experiment with different scenarios (a lower down payment? A shorter term?) to see where your monthly bill lands, then take a hard look at your current budget to see if that number is manageable. Seek out quotes from multiple lenders to find the most competitive rate and terms available to you.
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.
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 I put down 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 personal financial picture.
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 secure a lower interest rate?
Improve your credit score to 700 or higher for the most competitive rates. Go through the prequalification process with a variety of lenders and compare the rates you are offered. 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) if a new, lower rate is available.
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-Q325-113
