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 vary by jurisdiction and are a meaningful part of your monthly carrying cost. DC, Maryland, and Virginia each have different tax structures — something worth understanding before you commit to a price range.

Home Insurance Lenders require homeowners insurance as a condition of financing. Rates vary based on the property, coverage level, and location. Budget roughly 0.5–1 percent of the home's value annually as a starting estimate.

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.