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Price of home: |
Purchase price of the home you wish to buy.
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Cash on hand: |
Cash you have for the down payment and closing costs.
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Interest rate: |
The current interest rate you can receive on your mortgage.
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Term in years: |
The number of years over which you will repay this loan.
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Property tax rate: |
Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property
taxes.
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Home insurance rate: |
Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for
homeowner's insurance.
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Loan origination rate: |
The percentage the lending institution charges for its origination fee. 1% for a
$100,000 home equals $1,000.
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Points paid: |
The total number of points paid to reduce the interest rate of your mortgage. Each
point costs 1% of your mortgage balance.
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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.
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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.
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Total for down payment: |
Total funds remaining for down payment.
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Mortgage amount: |
Total amount of loan.
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Investment return: |
Annual percentage return you would receive if you invested your closing costs and
down payment instead of purchasing a home.
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Monthly rent payment: |
Amount you currently pay for rent per month.
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Income tax rate: |
Your current marginal income tax rate.
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Expected inflation rate: |
Inflation rate used to adjust amounts subject to annual increases. This includes
rent, insurance and tax payments.
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Home appreciates at: |
Annual appreciation you expect in the home you are purchasing.
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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.
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House payment: |
Total of principal, interest, taxes and insurance paid per month for your home.
Insurance includes PMI and homeowner.
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Principal payment: |
Total of principal paid per month on your mortgage.
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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%)
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Net house payment: |
Your house payment minus the value of the tax deduction and principal payment.
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Net home price: |
Net selling price of your home after subtracting any sales commissions.
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Monthly PI: |
Monthly principal and interest payment.
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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.
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