Mortgage and ROI Calculator

Welcome to the iLotus Realty interactive education center. Use the calculators above to model purchases, compare deals, and evaluate investment returns.

Understanding Your Mortgage

A mortgage is a loan secured by real estate. Your monthly payment typically includes P&I (principal & interest), property taxes, homeowner's insurance, HOA fees if any, and PMI if your down payment is under 20%.

What Affects Your Rate

• Credit score — the single biggest factor lenders use to price your loan
• Loan term — 15-year loans typically carry lower rates than 30-year loans
• Down payment — larger down payments reduce risk and often unlock better pricing
• Loan type — conventional, FHA, VA, and jumbo loans price differently
• Market conditions — Federal Reserve policy, inflation, and bond yields drive base rates

Key Investment Metrics

• Cap Rate = Net Operating Income / Purchase Price — measures unleveraged return
• Cash-on-Cash Return = Annual Cash Flow / Total Cash Invested — measures leveraged return on your actual out-of-pocket investment
• Cash Flow = Rental income − all expenses including mortgage — what hits your pocket each month
• NOI = Rental income − operating expenses (excludes mortgage) — the property's intrinsic profitability

Glossary

• PMI — Private Mortgage Insurance, typically required when down payment is below 20%
• PITI — Principal, Interest, Taxes, Insurance — the four components of a typical monthly payment
• Escrow — an account your lender uses to hold and pay taxes and insurance on your behalf
• Amortization — the schedule showing how each payment splits between principal and interest over time

This page is for educational purposes only and is not financial advice. Please consult a licensed mortgage professional for your specific situation.