| |
| 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. |
| |
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