- Annual
income
- Your
annual income. For married couples this is your total
combined annual income.
- Purchase
price
- The
price of the home you wish to purchase. This is the
actual price you'll pay, not including any closing
costs.
- Total
monthly payment
- Total
monthly payment that you can qualify for. This is
the total of principal, interest, taxes and insurance
paid each month. Often called PITI.
- Cash
on hand
- Cash
you have for the down payment and all closing costs.
- Interest
rate
- The
current interest rate you can receive on your mortgage.
- Term
in years
- The
number of years over which you will repay this loan.
The most common mortgage terms are 15 years and 30
years.
- Property
tax rate
- Your
property tax rate. 1% for a $100,000 home equals $1,000
per year in property taxes.
- Home
insurance rate
- Your
homeowner's insurance rate. 0.5% for a $100,000 home
equals $500 per in for homeowner's insurance.
- Monthly
car payment(s)
- Total
monthly payment for your car loan(s).
- Credit
card payments
- Total
monthly minimum payments for your credit cards.
- Other
loan payments
- Any
other installment loan payments, such as student loans
or unsecured loans.
- Total
closing costs
- Total
up front costs to close your loan. This is the total
of your loan origination fee, points paid and other
closing costs.
- Loan
origination rate
- The
percentage the lending institution charges for its
origination fee. 1% for a $100,000 home equals $1,000.
- Number
of points paid
- The
total number of points paid to reduce the interest
rate of your mortgage. Each point costs 1% of your
mortgage balance.
- Other
closing costs
- Estimate
of all other closing costs for this loan. This should
include filing fees, appraiser fees and any other
misc. fees paid.
- Monthly
PMI payment
- Monthly
cost of Principal Mortgage insurance (PMI). For loans
secured with less than 20% down, PMI is estimated
at 0.5% of your loan balance each year. Monthly PMI
is calculated by multiplying your starting loan balance
by this percent and dividing by 12. When your loan
balance exceeds 20% of the original purchase price,
your PMI payment drops to zero.
- Monthly
PI payment
- Monthly
principal and interest payment.
- Total
for down payment
- Total
funds remaining, after closing costs, for down payment.
- Limit
down payment to 20%
- Limit
down payment to 20% of the purchase price. Even if
you have more cash on hand than required for closing
costs and a 20% down payment.
- Show
schedule by month
- Display
the payment schedule by month when you press the Payment
Schedule button.
- Show
schedule by year
- Display
the payment schedule by year when you press the Payment
Schedule button.
- Total
debt percent of annual income
- Not
shown. This is the percent of your annual income your
financial institution allows you to use for installment
payments debt. This includes car payments, credit
card payments, other loan payments and your "Principal,
Interest, Tax and Insurance" payment for your home.
The default rate is 36%.
- PITI
percent of annual income
- Not
shown. This is the percent of your annual income your
financial institution allows you to use for your "Principal,
Interest, Tax and Insurance" payment for your home.
The default rate is 28%.
- Qualify
amount
- Shown
as "Total monthly payment." This is the total amount
you qualify for per month. This amount is the total
of "Principal, Interest, Tax and Insurance" for your
home.
|
