Mortgage Calculator Help

Home Value:  This is the dollar amount you expect the full purchase price to be payable at closing. The lender may also determine this with an appraisal.

Mortgage Loan Amount:  This is dollar amount you expect to have financed via a third a party lender.

APR (%):  An Annual Percentage Rate (APR) is the annual rate charged for borrowing and is expressed as a percentage that represents the actual yearly cost of funds over the term of the loan.

Loan Term (# years):  The life of a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate.

Real Estate Taxes (%):  Property tax is a tax assessed on real estate.  The tax is usually based on the value of the property (including the land) you own and is often assessed by local or municipal governments. Ask me for the tax rates in your area!

Homeowners Insurance:  Homeowner’s insurance is a form of property insurance that covers losses and damages to an individual’s house and to assets in the home. Homeowner’s insurance also provides liability insurance coverage against accidents in the home or on the property. Your final premium cost will be determined by the type of coverage you select.

PMI (%):  Private Mortgage Insurance (PMI) is a special type of insurance policy, provided by private insurers, to protect a lender against loss if a borrower defaults. Most lenders require PMI when a homeowner makes a down payment of less than 20% of the home’s purchase price – or, in mortgage-speak, the mortgage’s loan to value (LTV) ratio is in excess of 80% (the higher the LTV ratio, the higher the risk profile of the mortgage).

Closing Costs:  Closings costs are expenses over and above the price of the property in a real estate transaction. Costs incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.