Mortgage Calculator | DC Metro Area

Understanding Your Mortgage

Down Payment:

Most buyers put down 20 percent to avoid private mortgage insurance, though loan programs exist with as little as 3.5 percent down. The more you put down, the lower your monthly payment — and the stronger your offer looks in a competitive market.

Loan Term:

The most common options are 30-year and 15-year fixed loans. A 30-year term keeps monthly payments lower. A 15-year term builds equity faster and typically carries a lower interest rate — but comes with higher monthly payments. Your choice depends on your cash flow and long-term goals.

Loan Type:

Fixed-rate loans lock in your interest rate for the life of the loan — predictable payments, no surprises. Adjustable-rate mortgages (ARMs) start at a lower rate that adjusts after a set period, typically 5, 7, or 10 years. ARMs can make sense if you plan to sell or refinance before the adjustment period ends.

Interest Rate:

The rate shown is a current market estimate. Your actual rate will depend on your credit score, down payment, loan type, and lender. A small difference in rate has a significant impact on your total cost over time — worth shopping carefully.

Property Tax Rate:

Property taxes are set locally, and each jurisdiction runs its own rates and assessment schedules — the District, Montgomery County, Arlington County, the City of Alexandria, and Fairfax County all differ. The same purchase price can carry a different monthly payment on either side of the line. Closing costs split differently too: in the District the seller pays the transfer tax and the buyer pays the recordation tax, which is the standard structure rather than something negotiated deal by deal.

Home Insurance:

Lenders require homeowners insurance as a condition of financing. Rates vary with the property, coverage level, and location — age of construction, roof condition, and prior claims history all move the premium, which matters given how much of the older housing stock in Upper Northwest DC and the close-in Maryland suburbs predates 1960.

HOA Fees:

If the property is part of a homeowners association, monthly HOA fees are an additional carrying cost not reflected in your mortgage payment. In condominiums and some townhouse communities in DC, Maryland, and Virginia, these fees can range from under $100 to over $1,000 per month depending on the building and amenities. HOA fees are not included in your escrow account — they are paid directly by the homeowner to the association on a separate billing schedule.

Escrow Account:

Most lenders require an escrow account as part of your mortgage. Rather than paying property taxes and homeowners insurance in large lump sums, your lender collects a portion of each cost monthly alongside your mortgage payment and holds it in escrow on your behalf. When those bills come due, your lender pays them directly from the account.

A typical escrow account covers three items: property taxes, homeowners insurance, and — if your down payment is less than 20 percent — private mortgage insurance (PMI). Your lender will review the account annually and adjust your monthly payment if taxes or insurance costs change. It is worth reviewing that annual escrow analysis carefully, as unexpected increases can affect your monthly budget.

One more that a calculator will not catch: a cooperative's monthly fee often carries the building's underlying mortgage and its share of property taxes inside it, while a condominium fee usually does not. Two buildings can post similar monthly figures and mean very different things about what you still owe separately.

Running the numbers on a specific property is a different conversation than running them in the abstract. Sherine represents sellers and buyers across Wesley Heights, Spring Valley, American University Park, and the rest of Upper Northwest DC, along with Bethesda and Chevy Chase in Maryland and Arlington, Alexandria, and McLean in Virginia.

Sherine is here whenever you're ready.