Price of home
Purchase price of the home you wish to buy.
Cash on hand
Cash you have for the down payment and closing costs.
The current interest rate you can receive on your mortgage.
Term in years
The number of years over which you will repay this loan.
Property tax rate
Your property tax rate. 1% for a $100,000 home equals
$1,000 per year in property taxes.
Home insurance rate
Your homeowner's insurance rate. 0.5% for a $100,000 home
equals $500 per year for homeowner's insurance.
Loan origination rate
The percentage the lending institution charges for its
origination fee. 1% for a $100,000 home equals $1,000.
The total number of points paid to reduce the interest
rate of your mortgage. Each point costs 1% of your mortgage
Other closing costs
Estimate of all other closing costs for this loan. This
should include filing fees, appraiser fees and any other
miscellaneous fees paid.
Total closing costs
Total upfront costs to close your loan. This is the sum
of the loan origination fee, amount paid for points and
other closing costs.
Total for down payment
Total funds remaining for down payment.
Total amount of loan.
The rate of return you could receive if you invested your
closing costs and down payment instead of purchasing a
The actual rate of return is largely
dependant on the type of investments you select. From
January 1970 to December 2003, the average compounded
rate of return for the S&P 500, including reinvestment
of dividends, was approximately 11.7% per year. During
this period, the highest 12-month return was 64%, and
the lowest was -39%. Savings accounts at a bank pay as
little as 1% or less. It is important to remember that
future rates of return can't be predicted with certainty
and that investments that pay higher rates of return are
subject to higher risk and volatility. The actual rate
of return on investments can vary widely over time, especially
for long-term investments. This includes the potential
loss of principal on your investment.
Monthly rent payment
Amount you currently pay for rent per month.
Income tax rate
Your current marginal income tax rate.
Expected inflation rate
What you expect for the average long-term inflation rate.
This has been calculated by the Consumer Price Index from
1925 to 2002 to be 3.1%. Inflation rate is used to adjust
amounts subject to annual increases. These amounts include
rent, insurance and tax payments.
Home appreciates at
Annual appreciation you expect in the home you are purchasing.
Future sales commission
The percent of your home's selling price you expect to
pay to a broker or real estate agent when you sell your
Total of principal, interest, taxes and insurance (PITI)
paid per month for your home. Insurance includes Principal
Mortgage Insurance (PMI) and homeowner's insurance.
Total of principal paid per month on your mortgage.
The value of the tax deduction you receive on your mortgage's
interest and home's property taxes. For example, if you
have $900 in interest and $100 property taxes per month,
the value of the tax deduction would be $280. (At a tax
rate of 28%).
Net house payment
Your house payment minus the value of the tax deduction
and principal payment.
Net home price
Net selling price of your home after subtracting any sales
Monthly principal and interest payment.
Monthly cost of Private Mortgage Insurance (PMI). For
loans secured with less than 20% down, PMI is estimated
at 0.5% of your loan balance each year.
Information and interactive calculators
are made available to you as self-help tools for your
independent use and are not intended to provide investment
advice. We can not and do not guarantee their applicability
or accuracy in regards to your individual circumstances.
All examples are hypothetical and are for illustrative
purposes. We encourage you to seek personalized advice
from qualified professionals regarding all personal finance