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Definitions
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Price of home
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Purchase price of the home you wish to buy.
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Cash on hand
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Cash you have for the downpayment and closing costs.
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Interest rate
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The current interest rate you can receive on your mortgage.
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Term in years
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The number of years over which you will repay this loan.
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Property tax rate
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Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.
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Home insurance rate
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Your homeowners' insurance rate. 0.5% for a $100,000 home equals $500 per in for homeowners insurance.
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Loan origination rate
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The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.
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Points paid
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The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.
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Other closing costs
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Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other misc. fees paid.
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Total closing costs
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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.
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Total for downpayment
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Total funds remaining for downpayment.
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Loan amount
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Total amount of loan.
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Investment return
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Annual percentage return you would receive if you invested your closing costs and downpayment instead of purchasing a home.
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Monthly rent payment
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Amount you currently pay for rent per month.
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Income tax rate
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Your current marginal income tax rate.
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Expected inflation rate
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Inflation rate used to adjust amounts subject to annual increases. This includes rent, insurance and tax payments.
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Home appreciates at
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Annual appreciation you expect in the home you are purchasing.
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Home sales commission
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The percent of your homes selling price you expect to pay to a broker or real estate agent when you sell your home.
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House payment
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Total of principle, interest, taxes and insurance paid per month for your home. Insurance includes PMI and homeowners.
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Principle payment
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Total of principle paid per month on your mortgage.
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Tax savings
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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%)
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Net house payment
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Your house payment minus the value of the tax deduction and principle payment.
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Net home price
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Net selling price of your home after subtracting any sales commissions.
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Monthly PI
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Monthly principle and interest payment.
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Monthly PMI
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Monthly cost of Principle Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year.
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