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Home Loan Repayment Calculator: How Much You Can Afford? #business #loans #for #women


#home loan repayment calculator
#

Tips for your situation

Loan details

You can use this calculator to work out your home loan repayments with different loan sizes, interest rates, loan terms and repayment options.

What interest rate should I use?

You can use the Bank Standard Variable Rate (BSVR) of one of the major banks, less a 0.7% discount.

This is a good rough guide, although it is likely that we may be able to get your a better interest rate than this.

However, to determine what your payments would be if interest rates were to increase, put in an interest rate around 1.5% higher than the current BSVR.

This will help you figure out if you would be able to afford the loan, if rates went up.

What loan term should I use?

Generally, most mortgages in Australia are for a 30 year term. You can choose any term you like even up to 40 years, which is the maximum term offered in Australia.

Please keep in mind the shorter your term, the higher your repayments. However, the faster you pay off the loan, the less interest your will ultimately pay.

Is it better to pay weekly, fortnightly or monthly?

Despite what you might have heard in the media, there is no benefit to paying weekly or fortnightly as opposed to making monthly repayments. Some lenders divide the monthly repayment by two to work out how much you would pay if you were to make fortnightly repayments.

This is actually paying more than the true fortnightly repayments. If you make extra repayments then you will pay the loan off faster and will save money, this is why paying fortnightly appears to give you a benefit.

Making monthly repayments and paying more than the minimum is the most effective way to save money on your mortgage. If this is combined with an offset account you can easily reduce your interest expense without making a noticeable change to your lifestyle.

What does interest only mean?

If you are making interest only repayments then you are not actually paying off your home loan. You are just paying the monthly interest to the bank.

The advantage is that your repayments are smaller. The disadvantage is that you will not actually pay off your loan and ultimately you will pay much more in interest.

Investors often use interest only loans on their investment properties to keep their monthly commitments low and to allow them to use their spare funds to pay off their non-tax deductible debts first.

Can I pay interest only payments on a weekly basis?

The majority of lenders only allow interest only repayments to be made on a monthly basis. There are a few ways around this, however very few people choose to do this as there is no benefit in paying weekly or fortnightly if you are paying interest only.

How can I work out my borrowing capacity?

To do this, first determine how much you would feel comfortable repaying each month, then use a 1.5% higher rate than the current BSVR. This method can help you work out how much you could comfortably borrow without having to change your lifestyle or current spending habits.

This is a simplified method of working out your borrowing capacity. However, you can also use our borrowing power calculator or our mortgage brokers can give you a more exact figure using our software.

We never recommend that you borrow to your limit as this leaves you very little surplus money to spend on holidays or to keep on stand by for unforeseen circumstances.

Speak to a mortgage broker

Our mortgage brokers are here to help you apply for a loan that suits your needs. If you are trying to minimise your loan repayments or pay off your loan as quickly as possible, we can help you develop a strategy.

Please enquire online or call us on 1300 889 743 for more information.


Can you really afford that car loan? #loan #mortgage #calculator


#interest rate on car loan
#

By Todd Ossenfort

Dear Credit Guy,

I bought a car for $15,000 and my interest rate runs me 18 percent. I didn’t think it was that bad because I am a first-time buyer. I am wondering what is the best way to drop that interest rate FAST? — Trey

Dear Trey,

I noticed from your e-mail address that you are with the U.S. Army. Thank you for your service! Depending on your circumstances, you may qualify for protections under the Servicemembers Civil Relief Act (SCRA). Under this revised law, service members are entitled to a reduction on the interest rates charged for loans that were initiated before the service member began active duty in the military.

So, if you were called to active duty from a reserve unit and you acquired the car loan before you were called up, your loan would qualify under the Act for interest rate reduction. The SCRA requires lenders to reduce the interest rates for loans to a maximum of 6 percent while the service member is on active duty. You would need to send the creditor written notice that you are on active duty and include copies of your orders. You only qualify for the interest reduction while serving on active duty. Once your status changes, you will need to notify the creditor.

If the above doesn’t apply, then please read on. I am curious as to why you want the interest rate to drop FAST. I hope you are not in a crisis situation, and that you didn’t knowingly enter into a loan with a monthly payment that you cannot afford. Is it that your financial situation has changed since you initiated the loan and you can no longer afford the payment? Maybe you just don’t want to pay that much in interest charges, which would be prudent on your part. Depending on your situation, your options may be somewhat limited.

Unfortunately, with auto loans it is very easy to get upside down (owe more than the car is worth) very quickly — particularly with a high interest rate on the loan and a minimal down payment. When upside down in a loan it is difficult to refinance the loan to lower your interest rate because you need to borrow more than the collateral (the car) is worth.

Additionally, selling the car is difficult for the same reason. However, selling the car for a loss and then paying the lender the difference in the sales price and the loan balance is better than a voluntary repossession. When a car is repossessed it is sold at auction for only a fraction of its value and the former owner, which in this case would be you, is responsible for paying the difference in the auction price and the loan balance, which can be quite high.

Now that you have the bad news, the good news is if you made a decent down payment on the car loan and your credit history has improved since you purchased the car, you may qualify for a loan with a more reasonable interest rate. I would recommend starting with your local military credit union where you will likely get the best rates and terms. If you can demonstrate a consistent payment history of 6 to 12 months this should help get you a lower interest rate than the current 18 percent you are being charged. Shopping online for a loan is another option that you could pursue to secure a lower interest rate loan.

As of September 2008, the current going rate for a used-car loan for someone with good credit is around 7 percent. Going from an 18 percent loan to a 7 percent loan would save you a huge amount over the life of the loan. You didn’t mention the length of the loan you have, so let’s take a look at the differences for three-year, four-year and five-year loans:

Monthly savings from a lower interest rate on a $15,000 car loan


How much home can you afford? Advanced Topics #money #for #college


#where can i get a loan
#

How much home can I afford? and

Our How much home can you afford? page gave you a rough idea of the maximum price you can afford to pay for a home, with an easy-to-use calculator. The page you’re reading now gives you more of the story behind those numbers, and helps you better understand the factors influencing how much money the bank will loan you. This won’t necessarily help you compute your borrowing power any better (that’s what the calculator is for), rather it’s just to help you understand the concepts behind those numbers better. This discussion isn’t absolutely essential for most homebuyers, but it’s provided for those who want to know as much as possible — especially those having trouble affording a home who want to look for way to improve their house-buying chances.

Of course, if you haven’t already gone through the basics of how much home you can afford and haven’t used the calculator then you should go back there now before reading any further the page you’re on now is the advanced stuff.

Okay, on with the advanced stuff.

You’ll remember the simple formula from the previous page — since you pay for your house with a combination of a down payment and a bank loan, the total of both is the cost of the home:

Down Payment + Biggest Loan You Can Get = How Much Home You Can Afford

You know how much you can afford for a down payment, so that part’s easy. (At least you should know — if you don’t you should probably figure that out before going any further.) So that leaves us with finding the biggest loan we can get. So really, the rest of this page is really How much loan can I get? and not How much home can I afford? To find how much home you can afford just add the amount you can afford for a down payment to the amount you can get for a loan.

We’ve left one thing out of our simple equation above — closing costs . You’ll need to either pay the closing costs from your savings (lowering the amount you have available for a down payment), or qualify for a loan that’s a little larger than the house you want to buy, and have the closing costs added to the loan.

Returning our focus to getting the biggest loan possible, here are the things that can get us a bigger loan:

  • Higher monthly income
  • Lower existing monthly debt payments
  • Bigger down payment
  • 30-year mortgage (vs. 15)
  • A better credit score
  • A lower property tax insurance rate

Let’s look at each of these in detail.

Higher Monthly Income. Obviously the more you can afford to pay for a home, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 28 to 36% of your monthly income. What determines where you fall on that scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

This 28 to 36% figure is called the Housing Ratio. For example, if you make $3000/mo. and the bank uses a housing ratio of 33% then the bank figures you can afford $990/mo. in mortgage payments ($3000 x 28%). Note that the amount you can borrow is also limited by how much debt you have. Just because the Housing Ratio says your payments can be up to $990/mo. any debt you have couldbring that figure down. We’ll cover that later on.

Usually there’s not much you can do in the short-term about your income, but in one case there is: Buy a duplex or a house with a separate garage apartment that you can rent out. Then you can count the amount you’ll collect in rent towards your income. Some lenders are finicky about counting the rental income, but you can almost certainly find one who will. Your chances improve if the space is already rented and the renter has a long-term lease. Being able to count this extra rental income can help you buy a more expensive home — which will be a much better investment.

Here’s an example of how having a higher income means a bigger potential loan amount. These are estimates of loan amounts available at various income levels, assuming: $10,000 down, $500/mo. in debt, 7% interest, 30-year mortgage, and 2% property taxes and insurance.

Lower Monthly Debt payments. The less money you already owe, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 36 to 42% of your total monthly debt, including your mortgage payment. This figure is called the Debt Ratio. For example, you make $3000/mo. have $500/mo. in debt, and the bank uses a debt ratio of 38%. They limit your total monthly debt to $1140 ($3000 x 38%). But you already have $500/mo. in debt, so that means you have $640/mo. left over for your mortgage payment.

What determines where you fall on the 36 to 42% scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

Note that the amount you can borrow is also limited by the housing ratio discussed above. The bank figures your monthly limit using the Housing Ratio, then they figure your limit using the Debt Ratio, and they take the lower of the two. Here are some examples, with your monthly limit in each case highlighted.


How much home can you afford? Advanced Topics #cheap #car #loan


#where can i get a loan
#

How much home can I afford? and

Our How much home can you afford? page gave you a rough idea of the maximum price you can afford to pay for a home, with an easy-to-use calculator. The page you’re reading now gives you more of the story behind those numbers, and helps you better understand the factors influencing how much money the bank will loan you. This won’t necessarily help you compute your borrowing power any better (that’s what the calculator is for), rather it’s just to help you understand the concepts behind those numbers better. This discussion isn’t absolutely essential for most homebuyers, but it’s provided for those who want to know as much as possible — especially those having trouble affording a home who want to look for way to improve their house-buying chances.

Of course, if you haven’t already gone through the basics of how much home you can afford and haven’t used the calculator then you should go back there now before reading any further the page you’re on now is the advanced stuff.

Okay, on with the advanced stuff.

You’ll remember the simple formula from the previous page — since you pay for your house with a combination of a down payment and a bank loan, the total of both is the cost of the home:

Down Payment + Biggest Loan You Can Get = How Much Home You Can Afford

You know how much you can afford for a down payment, so that part’s easy. (At least you should know — if you don’t you should probably figure that out before going any further.) So that leaves us with finding the biggest loan we can get. So really, the rest of this page is really How much loan can I get? and not How much home can I afford? To find how much home you can afford just add the amount you can afford for a down payment to the amount you can get for a loan.

We’ve left one thing out of our simple equation above — closing costs . You’ll need to either pay the closing costs from your savings (lowering the amount you have available for a down payment), or qualify for a loan that’s a little larger than the house you want to buy, and have the closing costs added to the loan.

Returning our focus to getting the biggest loan possible, here are the things that can get us a bigger loan:

  • Higher monthly income
  • Lower existing monthly debt payments
  • Bigger down payment
  • 30-year mortgage (vs. 15)
  • A better credit score
  • A lower property tax insurance rate

Let’s look at each of these in detail.

Higher Monthly Income. Obviously the more you can afford to pay for a home, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 28 to 36% of your monthly income. What determines where you fall on that scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

This 28 to 36% figure is called the Housing Ratio. For example, if you make $3000/mo. and the bank uses a housing ratio of 33% then the bank figures you can afford $990/mo. in mortgage payments ($3000 x 28%). Note that the amount you can borrow is also limited by how much debt you have. Just because the Housing Ratio says your payments can be up to $990/mo. any debt you have couldbring that figure down. We’ll cover that later on.

Usually there’s not much you can do in the short-term about your income, but in one case there is: Buy a duplex or a house with a separate garage apartment that you can rent out. Then you can count the amount you’ll collect in rent towards your income. Some lenders are finicky about counting the rental income, but you can almost certainly find one who will. Your chances improve if the space is already rented and the renter has a long-term lease. Being able to count this extra rental income can help you buy a more expensive home — which will be a much better investment.

Here’s an example of how having a higher income means a bigger potential loan amount. These are estimates of loan amounts available at various income levels, assuming: $10,000 down, $500/mo. in debt, 7% interest, 30-year mortgage, and 2% property taxes and insurance.

Lower Monthly Debt payments. The less money you already owe, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 36 to 42% of your total monthly debt, including your mortgage payment. This figure is called the Debt Ratio. For example, you make $3000/mo. have $500/mo. in debt, and the bank uses a debt ratio of 38%. They limit your total monthly debt to $1140 ($3000 x 38%). But you already have $500/mo. in debt, so that means you have $640/mo. left over for your mortgage payment.

What determines where you fall on the 36 to 42% scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

Note that the amount you can borrow is also limited by the housing ratio discussed above. The bank figures your monthly limit using the Housing Ratio, then they figure your limit using the Debt Ratio, and they take the lower of the two. Here are some examples, with your monthly limit in each case highlighted.


FHA Mortgage Calculator – How Much Can I Afford? #loan #protection #insurance


#housing loan eligibility calculator
#

Required Annual Income:

This does not include upfront mortgage insurance if needed. Your salary must meet the following two conditions on FHA loans:

  • The sum of the monthly mortgage and monthly tax payments must be less than 31% of your gross (pre-taxes) monthly salary.
  • The sum of the monthly mortgage, monthly tax and other monthly debt payments must be less than 43% of your gross (pre-taxes) monthly salary.

DISCLAIMER: The figures above are based upon current FHA program guidelines. FHA requires a 3.5% down payment as well as an upfront and monthly mortgage insurance in many cases. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. See upfront and monthly calculations: FHA Mortgage Insurance Requirements .

Helpful Answers are Ready:

Can I remove MIP from my FHA if my home value goes up?

My home value has risen enough within the last year to where what I owe is 80% of the current value of the home.

I had a bankruptcy not long ago. How long do I have to wait before applying for an FHA loan?

I put in an offer on a home and the contract was accepted. The processing of our loan took longer than necessary and the appraisal in now 90 days old.

Can I pay my FHA loan in full without being penalized or charged for early payoff of the loan?

I obtained an FHA loan in 2010 and recently inherited some money from my dad’s estate. It’s enough to pay off my mortgage loan.


Home Loan Repayment Calculator: How Much You Can Afford? #consolidating #student #loans


#home loan repayment calculator
#

Tips for your situation

Loan details

You can use this calculator to work out your home loan repayments with different loan sizes, interest rates, loan terms and repayment options.

What interest rate should I use?

You can use the Bank Standard Variable Rate (BSVR) of one of the major banks, less a 0.7% discount.

This is a good rough guide, although it is likely that we may be able to get your a better interest rate than this.

However, to determine what your payments would be if interest rates were to increase, put in an interest rate around 1.5% higher than the current BSVR.

This will help you figure out if you would be able to afford the loan, if rates went up.

What loan term should I use?

Generally, most mortgages in Australia are for a 30 year term. You can choose any term you like even up to 40 years, which is the maximum term offered in Australia.

Please keep in mind the shorter your term, the higher your repayments. However, the faster you pay off the loan, the less interest your will ultimately pay.

Is it better to pay weekly, fortnightly or monthly?

Despite what you might have heard in the media, there is no benefit to paying weekly or fortnightly as opposed to making monthly repayments. Some lenders divide the monthly repayment by two to work out how much you would pay if you were to make fortnightly repayments.

This is actually paying more than the true fortnightly repayments. If you make extra repayments then you will pay the loan off faster and will save money, this is why paying fortnightly appears to give you a benefit.

Making monthly repayments and paying more than the minimum is the most effective way to save money on your mortgage. If this is combined with an offset account you can easily reduce your interest expense without making a noticeable change to your lifestyle.

What does interest only mean?

If you are making interest only repayments then you are not actually paying off your home loan. You are just paying the monthly interest to the bank.

The advantage is that your repayments are smaller. The disadvantage is that you will not actually pay off your loan and ultimately you will pay much more in interest.

Investors often use interest only loans on their investment properties to keep their monthly commitments low and to allow them to use their spare funds to pay off their non-tax deductible debts first.

Can I pay interest only payments on a weekly basis?

The majority of lenders only allow interest only repayments to be made on a monthly basis. There are a few ways around this, however very few people choose to do this as there is no benefit in paying weekly or fortnightly if you are paying interest only.

How can I work out my borrowing capacity?

To do this, first determine how much you would feel comfortable repaying each month, then use a 1.5% higher rate than the current BSVR. This method can help you work out how much you could comfortably borrow without having to change your lifestyle or current spending habits.

This is a simplified method of working out your borrowing capacity. However, you can also use our borrowing power calculator or our mortgage brokers can give you a more exact figure using our software.

We never recommend that you borrow to your limit as this leaves you very little surplus money to spend on holidays or to keep on stand by for unforeseen circumstances.

Speak to a mortgage broker

Our mortgage brokers are here to help you apply for a loan that suits your needs. If you are trying to minimise your loan repayments or pay off your loan as quickly as possible, we can help you develop a strategy.

Please enquire online or call us on 1300 889 743 for more information.


FHA Mortgage Calculator – How Much Can I Afford? #personal #loan #agreement


#home loan calculators
#

You May Qualify for a Loan Amount Up to:

NOTE: Additional requirements may be needed for loans above $417,000 in your area. This limit differs based on county. Please refer to our jumbo loans page for more information.

DISCLAIMER: The figures above are based upon current FHA program guidelines. FHA requires a 3.5% down payment as well as an upfront and monthly mortgage insurance in many cases. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. See upfront and monthly calculations: FHA Mortgage Insurance Requirements .

Helpful Answers are Ready:

Can I remove MIP from my FHA if my home value goes up?

My home value has risen enough within the last year to where what I owe is 80% of the current value of the home.

I had a bankruptcy not long ago. How long do I have to wait before applying for an FHA loan?

I put in an offer on a home and the contract was accepted. The processing of our loan took longer than necessary and the appraisal in now 90 days old.

Can I pay my FHA loan in full without being penalized or charged for early payoff of the loan?

I obtained an FHA loan in 2010 and recently inherited some money from my dad’s estate. It’s enough to pay off my mortgage loan.


How much home can you afford? Advanced Topics #money #loans #online


#where can i get a loan
#

How much home can I afford? and

Our How much home can you afford? page gave you a rough idea of the maximum price you can afford to pay for a home, with an easy-to-use calculator. The page you’re reading now gives you more of the story behind those numbers, and helps you better understand the factors influencing how much money the bank will loan you. This won’t necessarily help you compute your borrowing power any better (that’s what the calculator is for), rather it’s just to help you understand the concepts behind those numbers better. This discussion isn’t absolutely essential for most homebuyers, but it’s provided for those who want to know as much as possible — especially those having trouble affording a home who want to look for way to improve their house-buying chances.

Of course, if you haven’t already gone through the basics of how much home you can afford and haven’t used the calculator then you should go back there now before reading any further the page you’re on now is the advanced stuff.

Okay, on with the advanced stuff.

You’ll remember the simple formula from the previous page — since you pay for your house with a combination of a down payment and a bank loan, the total of both is the cost of the home:

Down Payment + Biggest Loan You Can Get = How Much Home You Can Afford

You know how much you can afford for a down payment, so that part’s easy. (At least you should know — if you don’t you should probably figure that out before going any further.) So that leaves us with finding the biggest loan we can get. So really, the rest of this page is really How much loan can I get? and not How much home can I afford? To find how much home you can afford just add the amount you can afford for a down payment to the amount you can get for a loan.

We’ve left one thing out of our simple equation above — closing costs . You’ll need to either pay the closing costs from your savings (lowering the amount you have available for a down payment), or qualify for a loan that’s a little larger than the house you want to buy, and have the closing costs added to the loan.

Returning our focus to getting the biggest loan possible, here are the things that can get us a bigger loan:

  • Higher monthly income
  • Lower existing monthly debt payments
  • Bigger down payment
  • 30-year mortgage (vs. 15)
  • A better credit score
  • A lower property tax insurance rate

Let’s look at each of these in detail.

Higher Monthly Income. Obviously the more you can afford to pay for a home, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 28 to 36% of your monthly income. What determines where you fall on that scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

This 28 to 36% figure is called the Housing Ratio. For example, if you make $3000/mo. and the bank uses a housing ratio of 33% then the bank figures you can afford $990/mo. in mortgage payments ($3000 x 28%). Note that the amount you can borrow is also limited by how much debt you have. Just because the Housing Ratio says your payments can be up to $990/mo. any debt you have couldbring that figure down. We’ll cover that later on.

Usually there’s not much you can do in the short-term about your income, but in one case there is: Buy a duplex or a house with a separate garage apartment that you can rent out. Then you can count the amount you’ll collect in rent towards your income. Some lenders are finicky about counting the rental income, but you can almost certainly find one who will. Your chances improve if the space is already rented and the renter has a long-term lease. Being able to count this extra rental income can help you buy a more expensive home — which will be a much better investment.

Here’s an example of how having a higher income means a bigger potential loan amount. These are estimates of loan amounts available at various income levels, assuming: $10,000 down, $500/mo. in debt, 7% interest, 30-year mortgage, and 2% property taxes and insurance.

Lower Monthly Debt payments. The less money you already owe, the bigger the loan you can get. The bank limits your monthly mortgage payment (including taxes and insurance) to no more than 36 to 42% of your total monthly debt, including your mortgage payment. This figure is called the Debt Ratio. For example, you make $3000/mo. have $500/mo. in debt, and the bank uses a debt ratio of 38%. They limit your total monthly debt to $1140 ($3000 x 38%). But you already have $500/mo. in debt, so that means you have $640/mo. left over for your mortgage payment.

What determines where you fall on the 36 to 42% scale is the size of your down payment and your credit score. In any event, the higher monthly payment the bank allows, the bigger the loan they’ll give you.

Note that the amount you can borrow is also limited by the housing ratio discussed above. The bank figures your monthly limit using the Housing Ratio, then they figure your limit using the Debt Ratio, and they take the lower of the two. Here are some examples, with your monthly limit in each case highlighted.


How Much House Can I Afford – Home Affordability Calculator #school #loans


#home loan eligibility calculator
#

More Calculators

Refinance Calculator

See how much refinancing can save you

Affordability calculator help

“How much house can I afford?” is a question we hear frequently from those looking to purchase a new home. The mortgage you can afford depends on many factors, including your target monthly payment, annual income, and down payment amount.

Zillow’s mortgage affordability calculator helps you determine what you can comfortably afford to pay based on your personal circumstances. It evaluates the percentage of your monthly income that goes toward existing debts to help identify how much extra you have to spend on a mortgage payment. Your remaining income after debt and taxes should be enough to cover living expenses and savings goals, and it is wise to have some cash set aside to accommodate any unexpected repairs or financial emergencies.

Annual income This is the combined annual income for you and your co-borrower. Include all income before taxes, including base salary, commissions, bonuses, overtime, tips, rental income, investment income, alimony, child support, etc. Down payment This is the amount of money you will put towards a down payment on the house. Make sure you still have cash left over after the down payment to cover unexpected repairs or financial emergencies. Monthly debt

Include all of you and your co-borrower’s monthly debts, including: minimum monthly required credit card payments, car payments, student loans, alimony/child support payments, any house payments (rent or mortgage) other than the new mortgage you are seeking, rental property maintenance, and other personal loans with periodic payments.

Do NOT include: credit card balances you pay off in full each month, existing house payments (rent or mortgage) that will become obsolete as a result of the new mortgage you are seeking, or the new mortgage you are seeking.

Interest rate This is the interest rate for the loan you will receive. It is pre-filled with the current 30-yr fixed average rate on Zillow Mortgages. Debt-to-income (DTI) Your DTI is expressed as a percentage and is your total “minimum” monthly debt divided by your gross monthly income. The conventional limit for DTI is 36% of your monthly income, but this could be as high as 41% for FHA loans. A DTI of 20% or below is considered excellent. Income taxes This is an annual tax that governments place on individuals’ income. It includes federal tax, most states and some local entities. The national average is around 30% but can vary based on income, location, etc. Property taxes The mortgage payment calculator includes estimated property taxes. The value represents an annual tax on homeowners’ property and the tax amount is based on the home’s value. Homeowners insurance Commonly known as hazard insurance, most lenders require insurance to provide damage protection for your home and personal property from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more. All homeowner’s insurance policies contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off your property. Mortgage insurance (PMI) Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home’s purchase price. It protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Also known as PMI (Private Mortgage Insurance). HOA dues Typically, owners of condos or townhomes are required to pay homeowners association dues (known as HOA fees), to cover common amenities or services within the property such as garbage collection, landscaping, snow removal, pool maintenance, and hazard insurance. Loan term This is the length of time you choose to pay off your loan (e.g. 30 years, 20 years, 15 years, etc.) Full report Click on the Full Report link to see a printable report that includes mortgage payment breakdowns, total payments, and a full mortgage payment amortization calculation (table and chart). Amortization table includes ability to view amortization by year or by month.

Mortgage Learning Center

Searching for your new home?

Pre-approval ensures you’re ready to make an offer when you find the perfect one.


FHA Mortgage Calculator – How Much Can I Afford? #how #to #get #a #loan #with #no #credit


#housing loan eligibility calculator
#

Required Annual Income:

This does not include upfront mortgage insurance if needed. Your salary must meet the following two conditions on FHA loans:

  • The sum of the monthly mortgage and monthly tax payments must be less than 31% of your gross (pre-taxes) monthly salary.
  • The sum of the monthly mortgage, monthly tax and other monthly debt payments must be less than 43% of your gross (pre-taxes) monthly salary.

DISCLAIMER: The figures above are based upon current FHA program guidelines. FHA requires a 3.5% down payment as well as an upfront and monthly mortgage insurance in many cases. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. See upfront and monthly calculations: FHA Mortgage Insurance Requirements .

Helpful Answers are Ready:

Can I remove MIP from my FHA if my home value goes up?

My home value has risen enough within the last year to where what I owe is 80% of the current value of the home.

I had a bankruptcy not long ago. How long do I have to wait before applying for an FHA loan?

I put in an offer on a home and the contract was accepted. The processing of our loan took longer than necessary and the appraisal in now 90 days old.

Can I pay my FHA loan in full without being penalized or charged for early payoff of the loan?

I obtained an FHA loan in 2010 and recently inherited some money from my dad’s estate. It’s enough to pay off my mortgage loan.