Variables are described below.

• home value: the selling price of the home

• downpayment: the amount the buyer has saved & is willing to invest in the property upfront. The average downpayment is around 10%, though the benchmark is 20% to relax PMI requirements.

• loan amount: typically the home value less the downpayment

• interest rate: the annual percentage rate (APR) charged on the loan

• loan term: the amortization period of the loan in years - typically 30 for most US residential loans

• property tax: annual property tax payment

• PMI: property mortgage insurance as a percent (typically between 0.5% and 1.3%, though unneeded if a 20% downpayment is used).

• home insurance: annual cost of a homeowners insurance policy

• monthly hoa: monthly dues for being part of a homeowners association.