Estimate Your Monthly Mortgage Payment

A monthly mortgage payment is calculated using the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. For a $360,000 loan at 6.75% over 30 years, the monthly principal and interest payment would be approximately $2,335. Your total payment also includes property taxes, homeowners insurance, and potentially PMI — use our calculator above for an exact estimate.

On a $100,000 annual salary with minimal debt, you can typically afford a home priced around $350,000–$380,000 using the 28/36 rule. That translates to a maximum monthly housing payment of approximately $2,333. In the DMV area, this puts you in range for homes in Gainesville, Stafford, Fredericksburg, Centreville condos and townhomes, or Bowie and Waldorf in Maryland. Down payment assistance programs like VHDA's grant (2–2.5% of purchase price) can reduce your upfront costs significantly.

With 20% down ($100,000) on a $500,000 home, a 30-year fixed mortgage at 6.75% results in a monthly principal and interest payment of approximately $2,595. Add property taxes (around $463/month in Fairfax County at 1.11%), homeowners insurance ($158/month), and your estimated total monthly payment is approximately $3,216. With less than 20% down, you'd also pay PMI of roughly $150–$200/month until you reach 20% equity.

Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home's purchase price. PMI protects the lender — not you — in case of default. It typically costs between 0.3% and 1.5% of the original loan amount per year, depending on your credit score and loan-to-value ratio. On a $400,000 loan, that's roughly $100 to $500 per month. PMI is automatically removed when your loan balance reaches 78% of the original home value, or you can request removal at 80%. VA loans never require PMI, which is one of their biggest advantages.

A 30-year mortgage has lower monthly payments but costs significantly more in total interest. A 15-year mortgage has higher monthly payments but saves you tens of thousands in interest and typically comes with a lower rate (often 0.5–0.75% less). For example, on a $360,000 loan: a 30-year at 6.75% costs $2,335/month with $481,000 in total interest, while a 15-year at 6.0% costs $3,038/month but only $187,000 in total interest — a savings of nearly $294,000. Many DMV buyers with dual government incomes choose the 15-year to build equity faster.

The minimum credit score depends on the loan type: Conventional loans generally require 620 or higher. FHA loans accept scores as low as 580 with 3.5% down (or 500 with 10% down). VA loans have no official VA minimum, but most lenders require 580–620. USDA loans typically require 640+. Higher credit scores unlock better interest rates — a buyer with a 760+ score might receive a rate 0.5–1.0% lower than someone at 620, which on a $400,000 loan saves over $100/month and $40,000+ over the life of the loan.

The "right" down payment depends on your loan type and financial situation. Conventional loans require as little as 3% down. FHA requires 3.5%. VA and USDA loans offer 0% down. Putting 20% down eliminates PMI and reduces your monthly payment, but it's not always the best strategy — especially in the DMV where home prices are high. Many first-time buyers in Virginia use VHDA's down payment grant (2–2.5% of purchase price) to reduce their out-of-pocket costs. DC's HPAP program can provide up to $202,000 in assistance. The best approach depends on your savings, timeline, and how quickly you want to build equity.

Property tax rates vary significantly across the DMV. In Virginia: Fairfax County charges approximately 1.11%, Loudoun County 0.87%, Arlington 1.013%, Prince William 1.037%, and Alexandria 1.09%. Washington, D.C. charges roughly 0.85% on residential property. In Maryland: Montgomery County is around 0.93%, Prince George's County 0.96%, Howard County 1.01%, and Frederick County 1.06%. West Virginia has the lowest rates in the region: Jefferson County at 0.58% and Berkeley County at 0.59%. Our calculator above auto-fills county-specific rates when you select your location.

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs, available to active-duty service members, veterans, National Guard/Reserve members, and eligible surviving spouses. VA loans offer significant advantages: 0% down payment, no PMI, competitive interest rates (often 0.25–0.5% lower than conventional), and no loan limit. In the DC metro area — home to the Pentagon, Fort Belvoir, Joint Base Andrews, Marine Corps Base Quantico, and hundreds of thousands of veterans — VA loans are one of the most powerful homebuying tools available.

Virginia offers several programs through the Virginia Housing Development Authority (VHDA): the Down Payment Assistance Grant provides 2–2.5% of the purchase price as a true grant with no repayment. The VHDA Plus Second Mortgage offers 3–5% as a deferred loan. The Mortgage Credit Certificate (MCC) gives you a federal tax credit of 20% of your annual mortgage interest — up to $2,000/year for the life of the loan. The SPARC Program provides a 1% rate reduction for qualifying buyers. Income limits and purchase price limits apply. Contact our team to see which programs you qualify for.

The Home Purchase Assistance Program (HPAP) is one of the most generous down payment assistance programs in the country. Eligible DC residents can receive up to $202,000 in gap financing for purchasing a home in the District. The program provides a deferred loan for down payment, closing costs, and gap financing, with income-based qualification tiers. Additionally, DC's Open Doors program offers up to 3.5% of the purchase price as a deferred second trust. These programs have made homeownership accessible to thousands of DC residents who might otherwise be priced out.

A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate for an initial period (typically 5, 7, or 10 years), then adjusts periodically based on market conditions. ARMs make sense if you plan to sell or refinance within the initial period — common among DMV buyers in government or military roles who relocate frequently. For buyers planning to stay long-term, a fixed rate provides stability and protection against rising rates.

The 2026 conforming loan limit for the Washington, D.C. metropolitan area (a designated high-cost area) is $806,500 for a single-family home. This means you can get a conventional or FHA loan up to this amount without needing a jumbo loan. For homes priced above this limit — common in areas like Great Falls, McLean, Potomac, and Georgetown — a jumbo loan is required, which typically needs a larger down payment (10–20%), higher credit score (700+), and more reserves.

At JB Financing, most buyers receive a pre-approval within 24 hours — and often the same day. You'll need to provide basic information including income documentation (pay stubs, W-2s, or tax returns for self-employed), bank statements, identification, and authorization for a credit check. Pre-approval tells you exactly how much you can borrow, which loan programs you qualify for, and gives you a significant advantage when making offers in the competitive DMV real estate market. Our online application takes about 15 minutes.

Yes, making extra payments is one of the most effective ways to save on interest and pay off your mortgage faster. Even one additional payment per year on a $360,000 loan at 6.75% can cut roughly 4–5 years off your loan term and save tens of thousands in interest. Most conventional, FHA, and VA loans have no prepayment penalties, meaning you can pay extra toward principal at any time without fees. Some borrowers also switch to biweekly payments (26 half-payments per year = 13 full payments) for the same effect.

Closing costs in the DMV typically range from 2% to 5% of the loan amount. On a $400,000 loan, expect $8,000–$20,000 in closing costs, which include lender fees (origination, appraisal, underwriting), title insurance, recording fees, and prepaid items (property taxes and insurance escrow). Virginia and Maryland also have transfer and recordation taxes that vary by jurisdiction. In many DMV transactions, sellers agree to contribute toward buyer closing costs — your real estate agent can negotiate this as part of your offer.

FHA loans are government-backed and designed for borrowers with lower credit scores (580+) and smaller down payments (3.5%). They're easier to qualify for but require mortgage insurance for the life of the loan on most terms. Conventional loans require higher credit (typically 620+) and can require as little as 3% down, but PMI is automatically removed once you reach 20% equity. For most DMV buyers with credit scores above 680 and some savings, conventional loans end up being more cost-effective long-term due to the ability to drop PMI.

The rent-vs-buy decision depends on how long you plan to stay, your savings, and local market conditions. As a general rule, if you plan to live in the same area for 3+ years, buying typically becomes more cost-effective than renting in the DMV. Average rent for a 2-bedroom in Northern Virginia is $2,000–$2,500/month, while a mortgage payment on a comparably valued property builds equity over time. With historically low inventory in the DC metro and steady population growth driven by the federal government and tech sector, home values in the region have shown strong long-term appreciation. Down payment assistance programs can reduce the barrier to entry significantly.