Back to the MortgageBloom Calculator

About MortgageBloom

MortgageBloom helps future homeowners make sense of the mortgage process.

Our calculator allows you to quickly adjust all the variables involved in getting a mortgage. We want you to be able to quickly experiment and get a feel for the tradeoffs you can make.

Who We Are

We're a small team of homeowners in the San Francisco Bay Area who think buying a home should be simpler and more transparent.

Common Questions

Why should I care about my interest rate?

Simply put, the interest rate (otherwise known as the Annual Percentage Rate, or APR) is the cost of borrowing money from lenders. A lower interest rate translates to a "cheaper" loan - this allows you to either receive a higher amount from lenders, or pay off your loan in a shorter time.

What's the difference between a Fixed mortgage and an ARM?

A Fixed Mortgage loan is offered at a fixed interest rate over 15 or 30 years. An ARM, or Adjustable Rate Mortgage, offers a fixed interest rate for a few years, then increases, or "adjusts," over time.

An ARM interest rate may appear to be more affordable than a Fixed interest rate, but can end up costing you more over time.

Why do I need a down payment?

A down payment gives lenders confidence that you will pay back your loan in full. A typical down payment for a mortgage loan is between 20% and 25% of the home value.

What is an FHA loan?

A loan with a down payment less than 20% is known as an FHA loan, which is insured by the Federal Housing Administration. FHA loans also need to be insured with Private Mortgage Insurance (PMI). Because of this, FHA loans often have higher interest rates.

Why can't I get a mortgage with a down payment of less than 3.5%?

Down payments less than 3.5% will not be covered by the FHA, and mainstream lenders will not provide a loan at reasonable interest rates.

What is a Jumbo mortgage

A Jumbo mortgage is a loan that is offered on homes that cost more than the national average. Jumbo loans carry higher interest rates due to their larger size.

What can I do if I have poor credit?

If your credit score is under 620, the majority of dependable lenders will see you as a high risk and not extend a loan. Consider repairing your credit before applying for a mortgage.

The calculator is broken. What can I do?

Click the orange 'Feedback' tab on the right side of the screen and send us a message explaining what's wrong. We'll try to fix it for you as soon as possible.