| 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.
|
| Mortgage 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. |
