Conventional Loan Calculator

Calculate your conventional mortgage payment including principal, interest, PMI, taxes, and insurance.

Conventional Mortgage Calculator

Enter your home details to calculate monthly payments and total costs

Home & Down Payment

Purchase price of the home
Minimum 3% for conventional
Or enter dollar amount

Loan Terms

Annual interest rate
Loan duration

Additional Costs (Monthly)

Annual property tax
Annual insurance premium
Monthly HOA dues (if any)
Annual PMI rate (if down < 20%)

Understanding Conventional Loans

What is a Conventional Loan?

A conventional loan is a mortgage not insured by government agencies like FHA, VA, or USDA. These loans follow guidelines set by Fannie Mae and Freddie Mac. They typically require better credit and larger down payments but offer competitive rates and terms.

Conventional Loan Requirements

  • Credit score: Minimum 620 (740+ for best rates)
  • Down payment: 3-20% (20% to avoid PMI)
  • Debt-to-income ratio: Usually below 45%
  • Stable income and employment history
  • Property appraisal required

PMI (Private Mortgage Insurance)

  • Required when down payment < 20%
  • Typically 0.5-1% of loan amount annually
  • Can be removed at 20% equity
  • Automatically cancels at 22% equity
  • Different from homeowners insurance

Conventional vs Government Loans

  • Conventional: Lower fees, stricter requirements
  • FHA: Lower credit requirements, higher fees
  • VA: No down payment for veterans
  • USDA: No down payment for rural areas