| 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. |