Definitions
Annual income
Your annual income before taxes. For married couples this is
your total combined annual income before taxes.
Purchase price
The price of the home you wish to purchase. This is the actual
price you'll 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 annual 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 year 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 upfront 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 miscellaneous
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 the equity in your home exceeds the
percentage required for PMI, your PMI payment drops to zero.
Please note that this is only an estimate of your actual PMI.
The amount you may be required to pay may be higher or lower
than our estimate.
Monthly PI payment
Monthly principal and interest payment.
Total for down payment
Total funds remaining, after closing costs, for down payment.
Limit down payment
Limit your down payment to percentage required to eliminate
the need for PMI payments. Even if you have more cash on hand
than required for closing costs checking this box will limit
your down payment to the minimum amount required to forego
PMI.
Show schedule by month
Display the payment schedule by month when you press the
"View Report" button.
Show schedule by year
Display the payment schedule by year when you press the "View
Report" button.
Total annual income debt percentage
Not shown. This is the percentage of your annual income your
financial institution allows you to use for debt installment
payments. 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 annual income percentage
Not shown. This is the percentage 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.
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