What Will This House Really Cost?

Often, yes. Most lenders collect 1/12th of your estimated annual property taxes and homeowners insurance with every monthly payment, holding it in an escrow account and paying the tax and insurance bills on your behalf when they're due. That's why this calculator's monthly payment includes taxes and insurance, not just principal and interest.

Beyond your down payment, plan for closing costs (lender, title, and appraisal fees, typically a couple percent of the loan), an inspection, and prepaid escrow for the first few months of taxes and insurance. This calculator estimates all of it together as "cash needed to buy."

Private Mortgage Insurance is required on most conventional loans when the down payment is below 20%. It protects the lender, not you, and is typically added to your monthly payment until you reach enough equity to have it removed. FHA, VA, and USDA loans have their own separate mortgage insurance or funding fee structures.

That depends on your income, existing debt, credit, and how much you have for a down payment — a lender will look at your full picture during pre-approval. This calculator helps you see what a specific home price would actually cost per month, which is a useful starting point before you talk to a lender.

It's a well-informed estimate, not a quote. The interest rate, property tax rate, and insurance cost are all approximations based on typical figures — your actual numbers will depend on your lender, your specific property, and your insurance company. See the methodology page for the exact assumptions used.

Typically lender fees, title insurance and search fees, an appraisal, recording fees, prepaid interest, and the first deposit into your escrow account for taxes and insurance. Some loan programs also add an upfront mortgage insurance fee, which is usually financed into the loan rather than paid in cash.

Often, yes. Under Michigan's Proposal A, a property's taxable value is capped while it's owned by the same person, but that cap is removed ("uncapped") in the year after a sale, resetting taxable value closer to the state equalized value (SEV). This means a buyer's tax bill can be noticeably higher than what the seller was paying — don't assume the seller's current tax bill is what you'll pay.

It's an exemption that excuses a Michigan homeowner's primary residence from the local school operating millage — typically around 18 mills — that non-homestead property (second homes, rentals) still has to pay. It's a major reason a rental or vacation home in Michigan can have a noticeably higher tax bill than an identically priced primary residence. This calculator applies it automatically based on how you said the property will be used.

Yes. Conventional loans can go as low as 3–5% down, FHA loans allow 3.5%, and VA and USDA loans can allow 0% down for eligible buyers. Putting down less than 20% on a conventional loan generally means paying PMI until you build enough equity.