| 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.
|
