This is the amount you intend to purchase your future home for. For example you decide to purchase a home for $300,000.
This is the amount you plan on
putting down on the property. For example, 20% down on a $300,000 house would
Years To Payoff Loan:
This is the term in years that you expect to pay off your loan. Most homes are purchased with a 30 year or 15 year loan. The 15 year loan normally is at a lower rate and you will pay a lot less interest over the term of the loan.
You should strongly consider it if
you are financially in a position to do so. That means having an adequate
emergency fund, proper insurance in all areas, realistic retirement plan in
place, education funding in place and little or no revolving or installment
debt and financial ratios at an acceptable level.
The interest rate that you will be
able to obtain will depend on a number of factors. The most important and
higher weight will be on your credit situation and credit score as well as the
particular area of the country in which you are in. Use a rate that is
realistic and that you feel you can obtain based on current market conditions
and your current credit situation.
In Georgia it normally ranges from 1-2%, however there are exceptions. A rate of 1.5% would be a good starting point for homes in Georgia, however you should check with your local tax office to get a more accurate figure.
In other areas of the United States the rate will vary as the Northeast and West is normally higher---while areas in the Midwest and South are sometimes lower. Contact a realtor or agent in your area if you are unsure of the tax rate. You can also go online to the county tax office to get this figure as most jurisdictions now have online tax information.
This figure too will vary by where you live as well as your credit rating. In Georgia the figure could be---say, $300 for every $100,000 of house and you would enter .30 (.30 * 1) as the insurance rate % in the mortgage calculator listed above or below if you were to purchase a house for $100,000.
If you were to purchase a house for $150,000 you would enter .45 (.30 * 1.5) as the insurance rate % in the mortgage calculator listed above or below.
If you were to purchase a house for $50,000 you would enter .15 (.30 * .5) as the insurance rate % in the mortgage calculator listed above or below.
For example, on a $300,000 house in the example above you would pay $900 and you would enter .90 (.30 * 3) as the insurance rate % in the mortgage calculator listed above or below.
This figure of course depends on which company you choose as well as your credit rating, topography, distance from nearest fire department, your local fire department rating and other factors.
Basically the figure can vary, often
substantially from company to company and area to area. To be more precise you
can call a local insurer in the area you are considering for your home
In addition, if you put less than 20% down on a “conventional loan”, it is important that you realize that you will also have to pay upfront PMI (Private Mortgage Insurance) or finance it into your loan.
If you finance it into your loan you will have to pay a monthly fee that will also be calculated---even though it is not included in the mortgage calculators on this page.
In the above example you would be putting 20% down ($60,000 on a $300,000 house which is exactly 20%) so PMI would not apply.
Likewise, if you put less than 20% down on a FHA loan and you financed (did not pay all of the MIP upfront) the MIP (Mortgage Insurance Premium) would also have to be added to the monthly payment. Again, this figure is not included on the mortgage calculators on this page.
PMI/MIP is basically insurance that protects the lender against certain losses in the case of default by the home purchaser.
When you put 20% or more down you
normally reduce the risk of loss for the lender to a level they can accept, and
hence PMI/MIP is not required.
HOA (Fees) Dues:
Some communities have what are called (HOA) Home Owner Association Dues or Fees. They may in many cases be included in your monthly payment.
If you live or purchase in a community that has HOA fees you will have to budget for them as they would normally be included in your monthly payment.
Some communities bill you quarterly, semi-annually and annually and the payment would not be included in your monthly payment.
HOA Dues are not included in the calculators on this page.
Other Helpful Calculators