Home Buying & Home Project Guides
Plain-English explanations of the math behind our calculators, with worked examples and sources.
How Mortgages WorkA mortgage is a loan secured by your home. Understanding four moving parts — principal, rate, term and escrow —…What Is PMI and How Do You Get Rid of It?PMI lets you buy with less than 20% down. It protects the lender, not you — so the goal is to pay it only as long as…Mortgage Amortization, ExplainedYour payment stays the same for 30 years, but what it pays for changes every single…Closing Costs, Explained Line by LineClosing costs are the fees and prepaid items due when your purchase closes. Freddie Mac puts them at 2% to 5% of the…Rent vs Buy: How to Decide“Rent is throwing money away” is only half the story. Owners also pay money they never get back. The question is which…How Much House Can I Afford?Lenders answer this question with a ratio. You should answer it with a budget. Here is how to do…When Should You Refinance Your Mortgage?A refinance is worth it when what you save exceeds what you spend — measured over the time you will actually keep the…Property Taxes, ExplainedProperty tax is often the second-largest part of a mortgage payment, and it varies more from place to place than any…How to Estimate How Much Paint You NeedMeasure, subtract, multiply by coats, divide by coverage. Here is the method, with the numbers paint makers…How to Estimate Flooring for a RoomMost flooring mistakes come from measuring, not math. Here is a reliable way to get the quantity right the first…