The price of the home you would like to purchase.
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.
The actual loan amount after the down payment has been applied.
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 Mortgage Marketplace.
This is the length of time you choose to pay
off your loan (e.g., 30 years, 20 years, 15 years, etc.)
MONTHLY PRINCIPAL AND
The combine amount of amortized
monthly payment and interest.
ANNUAL 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.
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 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).
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.
Is an acronym for a mortgage payment that is
the sum of monthly principal, interest, taxes, and insurance.
ANNUAL GROSS 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.
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.
The net amount of what
you can qualify for base on your gross income and debt payment.
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.