| Price of home: |
Purchase price of the home you wish to buy. |
| Cash on hand: |
Cash you have for the down payment and 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. |
| 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 year for homeowner's insurance. |
| Loan origination rate: |
The percentage the lending institution charges
for its origination fee. 1% for a $100,000 home equals $1,000. |
| 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. |
| Total closing costs: |
Total up front costs to close your loan. This
is the sum of the loan origination fee, amount paid for points and other
closing costs. |
| Total for down payment: |
Total funds remaining for down payment. |
| Loan amount: |
Total amount of loan. |
| Investment return: |
Annual percentage return you would receive if
you invested your closing costs and down payment instead of purchasing
a home. |
| Monthly rent payment: |
Amount you currently pay for rent per month.
|
| Income tax rate: |
Your current marginal income tax rate. |
| Expected inflation rate: |
Inflation rate used to adjust amounts subject
to annual increases. This includes rent, insurance and tax payments.
|
| Home appreciates at: |
Annual appreciation you expect in the home you
are purchasing. |
| Future sales commission: |
The percent of your homes selling price you expect
to pay to a broker or real estate agent when you sell your home. |
| House payment: |
Total of principal, interest, taxes and insurance
paid per month for your home. Insurance includes PMI and homeowner.
|
| Principal payment: |
Total of principal paid per month on your mortgage.
|
| Tax savings: |
The value of the tax deduction you receive on
your mortgage's interest and home's property taxes. For example, if
you have $900 in interest and $100 property taxes per month, the value
of the tax deduction would be $280. (At a tax rate of 28%) |
| Net house payment: |
Your house payment minus the value of the tax
deduction and principal payment. |
| Net home price: |
Net selling price of your home after subtracting
any sales commissions. |
| Monthly PI: |
Monthly principal and interest payment. |
| Monthly PMI: |
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. |
