| 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 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 in 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 up front
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 misc. 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 debt percent of annual income |
Not shown. This is the percent of your annual income your financial
institution allows you to use for installment payments debt. 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 percent of annual income | Not
shown. This is the percent 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. |
