Cost of house: The total cost of the house excluding any closing costs. Do not subtract the down payment from the cost. For example, if the total cost of the house is $150,000 and you have $10,000 for the down, enter 150000 in the Cost field. Down payment: The amount of cash you have for the down payment. This is not the total cash you have in the bank, because you'll need some of the cash for closing costs (typically a few percent of the loan value), and many lender's will require you have enough cash in the bank to cover a few months of all your debt payments. Length of loan: The total length of the loan in years, typically 15 or 30 years. Interest rate: The annual interest rate charged by the lender. Check your newspaper for the rates charged by lenders in your area. Also some lenders post their rates on the internet. Yearly insurance rate: The annual property (not mortgage) insurance rate in your area. For example, if it costs $1000 a year in your area to buy property insurance on a $100,000 house, the rate is 1% so you would enter 1.0 in this field. Because the cost of property insurance varies widely by region and type of house, you will need to talk to family, friends, insurers, and lenders to get a feel for the rate in your area. Do not include mortage insurance costs in this rate. The calculator will automatically decide if lender's will require mortgage insurance and what the monthly cost of the mortgage insurance will be. Property tax rate: The annual property tax rate in your area. For example, if taxes are $1000 a year in your area for a $100,000 house, the rate is 1% so you would enter 1.0 in this field. Because the property taxes vary widely by region and type of house, you will need to talk to family, friends, the government to get a feel for the tax rate in your area. This is not the sales tax rate. Any sales tax in your area will be part of the loans closing costs. Monthly debt payment: Your current total monthly debt payment. For example, if you have a $300 monthly car payment, a $100 minimum monthly payment on a credit card, and another $150 monthly payment on your big screen TV, you would enter 550 in this field. Qualifying income: The income you'll need to qualify for the loan.