| Definitions |
| |
|
| 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 year 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
upfront 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 miscellaneous 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
Annual Income
Debt Percentage : |
Not
shown. This is the percentage of your annual
income your financial institution allows
you to use for debt installment payments.
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
Annual Income Percentage :
|
Not
shown. This is the percentage 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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