The scariest part about buying a new home is the mortgage payment. Today, homes are expensive, and it’s actually cheaper to rent. However, renters throw away money every month, and they don’t enjoy the benefits that homeownership brings. Fortunately, there are ways to calculate or estimate a monthly mortgage payment.

Several mortgage and loan websites feature a free mortgage calculator. Although the figures aren’t exact, these calculators provide a ballpark estimate. This way, you know how much house you can afford. Of course, to benefit from a free mortgage calculator, you’ll need some information.

1. How Much is the House? If using a free mortgage calculator to determine a monthly payment, the first thing you’ll need to do is enter a price.

2. Determine an Interest Rate. This is the hardest part. Before applying for a home loan, check your credit. If you have good credit, input 6.5 or 7 percent for the rate. If you have a few credit problems, enter 8 or 9 percent. The actual rate will differ. But this will get you started.

If you have a down payment, enter this figure into the free mortgage calculator. Next, calculate the mortgage payment amount. Lastly, add about $200 to the amount to accommodate taxes and insurances.