Down Payment
The typical guideline is to put down 20% of the home's purchase price, though some loan programs allow as little as 3.5% down. Your down payment directly reduces your loan amount — the more you put down, the lower your monthly payments will be, and the more purchasing power you'll have.
Loan Term
Your loan term is the length of time you have to repay your mortgage. Common options include 30-year and 15-year fixed terms, each with different trade-offs between monthly payment size and total interest paid over the life of the loan. Use the calculator to compare terms side by side.
Loan Type
The two most common mortgage types are fixed-rate and adjustable-rate loans. Fixed-rate loans keep the same interest rate for the entire loan term, giving you predictable payments and easier long-term planning. Adjustable-rate mortgages (ARMs) typically start with a lower rate that adjusts periodically after an initial fixed period — for example, a 5/1 ARM holds its rate for the first 5 years, then adjusts annually. Learn more about loan types.
Interest Rate
The calculator is pre-filled with the current average mortgage rate as a starting point. Your actual rate will vary based on a number of factors, including your credit score, down payment amount, loan type, and the lender you work with. We recommend connecting with a local lender for a personalized rate quote.
Property Tax Rate
The calculator includes an estimated property tax based on the home's value. Property tax rates vary by location — rates in Anchorage and the Matanuska-Susitna Borough differ, so it's worth confirming the rate for the specific area you're shopping in. You can adjust this figure in the advanced options.
Home Insurance
Homeowners insurance is required by most lenders as a condition of your mortgage. The amount varies based on the home's value, location, and coverage level. You can update this figure in the calculator's advanced options to better reflect a quote you've received.
HOA Fees
If the property you're purchasing is part of a homeowners association, you'll have a monthly HOA fee in addition to your mortgage payment. These fees go toward maintaining and improving shared spaces and community amenities. Not all properties have HOA fees — check the listing details or ask your agent.
Disclaimer: Alaska Real Estate Connection is a real estate team brokered by Herrington and Company — not a mortgage lender or financial institution. All calculator results are estimates for informational purposes only and do not constitute a loan offer or financial advice. Actual rates, payments, taxes, and insurance costs will vary. Please consult directly with a licensed lender or mortgage professional for accurate figures. All information deemed reliable but not guaranteed.