Mortgage Calculators
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It is important to find the right home and loan to match your budget. Use our calculator to figure out your estimated monthly payment in advance by estimating your loan amount, interest rate, and length of mortgage. |
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What a Mortgage Payment Consists of
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1) Principal: The repayment of the original amount borrowed on a monthly basis. 2) Interest: The cost of borrowing the principal amount, repaid on a monthly basis. 3) Taxes: Real Estate taxes paid to a local government agency. 4) Insurance: Homeowners insurance on the home. Also any mortgage insurance, which is paid to protect the mortgage company.
The total of these items is known as the PITI (Principal/Interest/Taxes/Insurance) payment. |
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Types of Mortgages
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Fixed: A fixed term (for example, 15 or 30 years) as well as a fixed interest rate. The interest rate and term are fixed at the start of the mortgage. The monthly amount for the payment of principal and interest will not change during the term of the mortgage.
Adjustable: Often referred to as an ARM (Adjustable Rate Mortgage). The interest rate on your mortgage will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down with these rate changes. These mortgages may include "Interest Only" type of loans |
How much down payment?
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One of the first questions that home buyers ask is "how much down payment are we going to need?" Unfortunately, there is no standard answer. Down payments will vary from 0% (with a VA--Veteran's Administration loan) to upwards of 25% (with certain "non-conforming" loans). As an average, most home buyers make down payments in the 5%-15% range, although your own personal situation may dictate more or less down payment. When you are factoring money for a downpayment, don't forget about closing costs, which will total in the 2-5% range, payable in cash at the time of closing. |
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What is Prequalification? Does it mean that the loan is approved?
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Prequalification is the initial step in securing a mortgage. A lender will analyze your current income, debt and basic credit history situation in order to qualify you for a maximum loan amount. This gives you a clear picture of your financial parameters and a maximum housing price (the mortgage amount plus your down payment). With preapproval, the lender verifies your income, debt and financial picture, approving the loan subject to a favorable appraisal of the property you select. |
Finding a Mortgage
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David works with multiple lenders who are qualified professionals. If you are looking for a mortgage lender please contact David directly and he will help you find the lender that fits your needs best. Some buyers will need mortgage brokers and other will need credit unions or personal banks. Depending on your credit score, dept to income ratio and other factors David can help you determine which mortgage lender will work best. David also has experience working with different lenders and can let you know what about his experiences with each of them. |
