| 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 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. |
