How much house can you afford?
This calculates a payment for a loan amount that is fixed over a period of time. The loan can be a mortgage, car loan, or any fixed interest loan.
Estimated Loan Terms:
Income:
Monthly Payments:
Taxes & Insurance:
Other Qualification Factors:
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Front-End Ratio: |
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Back End Ratio: |
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Ratios are often used to determine
whether you will qualify for a specific loan program or not.
Most loan programs are qualified by the default values given
(28%/36%) however there are many other loan programs that require
more lenient ratios Sometimes as high as 45%. The front-end ratio
is calculated by dividing your proposed housing expenses by your
total income. The back end ratio is calculated by dividing your
proposed housing expenses and your other total debt by your total
income.
Your Results
| House value |
$99,694.30 |
| Loan Value |
$97,694.30 |
| Monthly Principal+Interest |
$733.94 |
| Monthly Prop Tax+Insurance |
$157.84 |
| Monthly Private Mortgage Ins. (PMI) |
$74.77 |
| Down Payment |
$2.00% |
| Loan To Value (LTV) |
$98.15% |
Explanation
Typically, if your down payment is less than 20% of the house value, you have to pay for Private Mortgage Insurance (PMI).
We estimated PMI at an extra 0.9 of the loan each year although this percentage will fluctuate depending upon where the insurance is required.
There are some loan programs, however, that do not require PMI regardless of the LTV.
PMI values are estimated based on the following criteria.
if LTV is less than 85%, PMI is 0.32%
if LTV is more than 85%, PMI is 0.52%
if LTV is more than 90%, PMI is 0.78%
if LTV is more than 95%, PMI is 0.90%
if LTV is more than 97%, PMI is 0.95%
The accuracy and use of this calculator is not guaranteed.
