| 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 Private 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. |
