understand rates and cost
let's begin with rates
Watch your mortgage rates. Rates fluctuate daily depending on the movement of the markets and lending demand. So as rates lower, the lesser the cost of your mortgage loan.
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More Rate Information
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Estimate Total Costs
Lenders will require that you have enough savings or cash on-hand to cover your down payment and closing costs. If you don't have enough funds to cover these costs, you may be disqualified from a mortgage or invited to apply for a different loan product that may be more expensive.
Let's Add Up the Numbers
This will
help figure out what
parameters you need to change to fit within your budget and income
ratios.
Calculation Notes:
the amount of available cash
/ equity is the cash you have on hand
for your down payment and closing costs.
Equity refers to the resale equity value
of your existing home if any, that will
be available to you once you sell your
home.
- Closing costs is calculated as percentage
of the estimated purchase price of the
home — this percentage can range
between 3-7% depending on your location
and number of points.
- The American
Housing Survey shows that the median
taxes paid averaged $10 per $1,000 in
home value. The property insurance paid
averaged $30 per month.
- You can lookup your property tax assessments by community: www.statelocalgov.net
Any percentage LTV
that is greater than 80% may require
private mortgage insurance, which
can add to the total cost of your loan
— if your LTV% (calculated below)
is greater than 80%, enter 0.005 in
the PMI field and recalculate.
