Things You Should Know About Mortgage Financing

This calculator gives you a starting estimate — your actual payment depends on a few other factors:

• Property taxes and homeowners insurance are usually rolled into your monthly payment (this is called PITI: Principal, Interest, Taxes, Insurance). In Florida, insurance costs can vary significantly by county and home age, so your real payment may differ from a bare-bones principal-and-interest estimate.
• HOA and CDD fees, common in many Central Florida communities, typically aren't included in a standard mortgage calculator. If you're eyeing a specific community, ask about these separately — they can meaningfully change your true monthly cost.

Down payment basics:

• FHA loans require as little as 3.5% down (with a credit score of 580+), making them a common choice for first-time buyers.
• Conventional loans can go as low as 3% down for qualifying first-time buyers, though 5–20% is more typical. Putting down 20% avoids private mortgage insurance (PMI) altogether.
• If you're below 20% down on a conventional loan, PMI automatically drops off once you reach 22% equity — you can also request removal once you hit 20% equity, sooner if your home has appreciated.

FHA vs. Conventional — the trade-off:

• FHA mortgage insurance (MIP) typically lasts for the life of the loan unless you put down 10% or more, in which case it's removed after 11 years.
• Conventional loans generally require a higher credit score (620+, with 680+ getting the best rates) but let you drop PMI automatically once you build enough equity.
  

Two numbers your lender will focus on:

• Credit score — affects both your rate and which loan programs you qualify for.
• Debt-to-income ratio (DTI) — lenders generally want your total monthly debt payments (including the new mortgage) to stay under a certain percentage of your gross income; the exact threshold varies by loan type and lender.
  

Don't forget closing costs. Beyond the down payment, plan for roughly 2–5% of the home price in closing costs — this covers lender fees, title work, appraisal, and other one-time expenses at the closing table.

 
This is general information, not a loan quote. For actual numbers based on your specific financial situation, connect with a lender I trust — get a recommendation.