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Real Estate Mortgage Calculator

Choosing the right mortgage is an essential part of purchasing the right home. Whether you're searching for a home on the waterfront, a land acquisition, or a single-family home right on the water, you're likely going to finance your home purchase with a mortgage.

So, which mortgage is the right one for you? That depends on a number of different factors, most of them centering around your finances. Use this page as your guide to the many different types of mortgages out there before you decide on a Northern Peninsula home. If you have any questions about mortgages, home-buying, or the Northern Peninsula area of Washington, contact us!

Your Quick Mortgage Overview

Simply put, a mortgage is a loan. Just like any other loan, you'll have to meet with a lender to discuss how much money they're willing to lend you, and the terms of your repayment. However, since you're using this loan to pay for your home, it's different from other kinds of loans. A mortgage is a loan for the value of your home, so due to its value you'll likely be paying it off for a while.

Mortgages are available for a number of different periods of time (you could spend 20, 30, or 40 years paying it off) with multiple interests and conditions available. The mortgage that's best for you depends on your annual income, credit score, credit history, any outstanding debts you may have, and any assets you may have acquired over the years.

With so many different kinds of mortgages out there, how do you know which one is right for you? We'll get into that, but first; here's a guide to some of the most common mortgage types:

Fixed-Rate Mortgage

  • Traditional mortgage type
  • What most people think of when they think 'mortgage'
  • Constant rate over the lifetime of the loan
  • Can be taken out in 10, 15, 20, or 30-year lengths

Adjustable-Rate Mortgage (ARM)

  • Mortgage interest rate changes, starting small and increasing over time
  • Are tied to one-year treasury bills or another specific index
  • Usually a cap of two points; lifetime ceiling caps of around six points
  • Rate can drop

FHA Mortgage

  • Pre-set spending limits
  • Amounts are set by the median prices of different cities within a particular area
  • Only 5% down is required (sometimes 3%)
  • Steep mortgage insurance premium and other upfront costs are required

VA Loans

  • Available to veterans and active-duty military members
  • No down payment
  • Not allowed to pay points; responsible for some fees
  • Seller usually has to pay the extra money

Two-Step Mortgage

  • Usually called 5/25s and 7/23's
  • Convertible converts the loan to a fixed loan for the remaining 25 or 23 years
  • Nonconvertible - converts the loan to an ARM
  • Both are 30-year loans
  • Fixed interest rates for the first 5 or 7 years; then change to convertible or nonconvertible loans
  • Both can be amortized over 30 years
  • Riskier than fixed rates, but less risky than ARMs

Biweekly Mortgage

  • You pay half the amount of a monthly payment
  • Paid 26X a year (not 12X monthly)
  • Cuts down on the amount of interest over the life of the loan
  • Paying so often can be a drawback

How Much Will the Bank Loan Me?

This depends on your finances. Before you go home searching, we highly recommend you sit down with a local lender to become pre-approved for your mortgage. The pre-approval process is great because the lender will review every aspect of your finances. This includes your credit score, credit history, annual income, any debts you've accrued, and any assets you may have. Then, they'll do some math and give you a number. That's how much the bank is willing to lend you. Congratulations, you just set your budget for your home search.

We recommend meeting with at last two different lenders to ensure you're getting the best deal possible. The mortgage pre-approval process is valuable for these reasons:

  • It lets you know exactly how much money the bank is willing to loan you
  • You'll know what your potential maximum mortgage payment will be
  • You'll know how much your down payment will be
  • It makes you a more competitive buyer to sellers


If you need a lender in the Sequim or Port Angeles area, contact us for our recommendations. In the meantime, feel free to play around with the mortgage calculator at the bottom of this page. Put in how much money you're willing to spend on a home, along with common interest rates for the mortgage, to see what your monthly payments could be like.

Any Other Questions?

I have answers. If you're thinking of buying a home in Sarasota, PA, we should chat. I would love to connect you with home-buying resources or sit down to discuss your future plans.

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