| 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. |
