When purchasing a new home from a builder like D.R. Horton (one of the largest homebuilders in the United States), understanding your potential monthly mortgage payment is crucial. While D.R. Horton often partners with their affiliated lender, DHI Mortgage, to offer incentives like closing cost credits, the core components of your mortgage payment remain the same. This calculator helps you estimate your total monthly housing expense, including principal, interest, property taxes, homeowner's insurance, and Private Mortgage Insurance (PMI) if applicable.
How the Calculation Works:
The monthly mortgage payment is typically broken down into several parts, often referred to as PITI (Principal, Interest, Taxes, and Insurance), plus PMI if your down payment is less than 20% of the home's purchase price.
Principal & Interest (P&I): This is the core of your mortgage payment that goes towards paying down the loan balance and covering the interest charged by the lender. It's calculated using the standard mortgage payment formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Your total monthly mortgage payment (P&I)
P = The principal loan amount (Home Price – Down Payment)
i = Your *monthly* interest rate (Annual Interest Rate / 12)
n = The total number of *monthly* payments over the loan's lifetime (Loan Term in Years * 12)
Property Taxes: This is the annual property tax amount divided by 12 to get a monthly figure. These taxes are collected by the lender and paid to local government authorities on your behalf.
Homeowner's Insurance: This is the annual homeowner's insurance premium divided by 12. Lenders require this to protect against damage to the property.
Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home price, lenders typically require PMI to cover their risk. This is an additional monthly cost, which can vary significantly.
Why Use This Calculator?
This calculator is a valuable tool for prospective D.R. Horton homebuyers because it:
Provides Estimates: Gives you a realistic idea of your monthly financial commitment.
Facilitates Budgeting: Helps you determine affordability and budget for housing expenses.
Informs Decision-Making: Allows you to compare different home prices, down payment amounts, and interest rates to see their impact on your monthly payment.
Highlights Total Costs: Goes beyond just the Principal and Interest to include all the necessary components of a monthly mortgage payment.
Remember, this is an estimate. Your actual DHI Mortgage payment may vary based on specific loan programs, lender fees, prevailing market conditions, and your individual financial profile. It's always recommended to speak directly with a DHI Mortgage loan officer for a precise quote.
function calculateMortgage() {
var homePrice = parseFloat(document.getElementById("homePrice").value);
var downPaymentPercent = parseFloat(document.getElementById("downPayment").value);
var annualInterestRate = parseFloat(document.getElementById("interestRate").value);
var loanTermYears = parseFloat(document.getElementById("loanTerm").value);
var annualPropertyTax = parseFloat(document.getElementById("propertyTax").value);
var annualInsurance = parseFloat(document.getElementById("annualInsurance").value);
var monthlyPMI = parseFloat(document.getElementById("monthlyPMI").value);
// Input validation
if (isNaN(homePrice) || homePrice <= 0 ||
isNaN(downPaymentPercent) || downPaymentPercent 100 ||
isNaN(annualInterestRate) || annualInterestRate <= 0 ||
isNaN(loanTermYears) || loanTermYears <= 0 ||
isNaN(annualPropertyTax) || annualPropertyTax < 0 ||
isNaN(annualInsurance) || annualInsurance < 0 ||
isNaN(monthlyPMI) || monthlyPMI 0 && numberOfPayments > 0) {
principalAndInterest = principalLoanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else if (principalLoanAmount > 0) { // Handle 0% interest rate or 0 term if loan amount > 0
principalAndInterest = principalLoanAmount / numberOfPayments;
}
var monthlyPropertyTax = annualPropertyTax / 12;
var monthlyInsurance = annualInsurance / 12;
var totalMonthlyPayment = principalAndInterest + monthlyPropertyTax + monthlyInsurance + monthlyPMI;
// Format the result to two decimal places
var formattedMonthlyPayment = totalMonthlyPayment.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
document.getElementById("result-value").innerText = formattedMonthlyPayment;
}