| Price of home: |
Purchase price of the home you wish to buy. |
| Cash on hand: |
Cash you have for the downpayment 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 homeowners' insurance rate. 0.5% for a $100,000 home equals
$500 per in for homeowners 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 downpayment: |
Total funds remaining for downpayment. |
| Loan amount: |
Total amount of loan. |
| Investment return: |
Annual percentage return you would receive if you invested your
closing costs and downpayment 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.
|
| Home 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 homeowners. |
| 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. |
