Frequently asked mortgage questions
Practical answers to common mortgage planning questions.
Does the mortgage payment include property taxes?
The basic principal-and-interest payment does not. Our full housing estimate adds property tax, homeowners insurance, HOA, and entered PMI separately. Taxes and insurance may be paid through escrow or directly.
Is APR the same as the interest rate?
No. The note rate determines scheduled interest on the principal. APR is a broader annualized disclosure that reflects certain finance charges and can help compare loan offers with different fees. Use official lender disclosures for APR.
When can PMI be removed?
Rules depend on loan type, payment history, property value, and applicable law. Conventional PMI cancellation and termination rules differ from FHA mortgage insurance. Ask your servicer about your particular loan.
Do extra payments lower my required payment?
Usually they reduce principal and may shorten payoff; they generally do not automatically reduce the required scheduled payment on a fixed-rate mortgage. A formal recast may be available for some loans. Confirm with your servicer.
Why do lender calculations differ?
Actual offers may use different rates, loan terms, tax estimates, insurance premiums, PMI, escrow, payment dates, rounding, and fees. Our calculations are estimates based on your inputs.
Should I refinance whenever the rate falls?
Not necessarily. Closing costs, remaining term, expected years in the home, and cash-flow needs matter. Compare total remaining interest and costs, not only monthly savings.
Can I use this for adjustable-rate mortgages?
Only for a single fixed-rate period as a rough estimate. Future ARM resets, caps, and index changes are not modeled. Review the loan contract for adjustment rules.
What is a mortgage point?
One point is generally an upfront charge equal to 1% of the loan amount. The associated interest-rate reduction varies by lender and market conditions. Compare actual quoted options.
Does a lower down payment always make sense?
No. It preserves cash but increases principal, may change the rate, and can trigger mortgage insurance. Compare total monthly costs and remaining emergency savings.
Is this a loan offer or financial advice?
No. MtgCalc365 provides educational estimates and does not issue mortgages, preapprove borrowers, or collect applications.