Calculator Term Definitions
AMOUNT BORROWED: Enter the total amount of money that you want to borrow to make your purchase. Remember to subtract your down payment from the estimated selling price.
CREDIT CARD BALANCES: Check with your loan officer to determine how your credit card balances affect your eligibility. A general rule is to assume that the minimum payments on outstanding credit card balances will be about 5% of the balance. For example, a balance of $500 would mean a minimum monthly payment of $25. Enter your total credit card balances, the software will compute the 5% minimum payment.
INCOME: Enter the income of both spouses if applicable. If you have an hourly salary, compute your yearly salary as follows: Hourly-Rate x 40 x 52. The following income should be averaged over a two year period: overtime, bonuses, commission, self-employed income, and dividend/interest income.
MORTGAGE INTEREST RATE: The mortage rate can fluctuate on a daily basis. For the current interest rate your lending institution.
OTHER MONTHLY PAYMENTS: This figure should include all your monthly installment payments. These should include auto loans, student loans, and other personal loan payments. This figure may also include child support and alimony. Check with your loan officer.
REAL ESTATE TAXES: In general real estate taxes are about 1.75% to 2.5% of the home's value. For instance, the taxes on a home worth $100,000 would probably be in the range of $1,750 to $2,500. This amount will vary according to local taxing policies. For more information about real estate taxes in your area just Call Kim!
REGULAR PAYMENTS: Enter your desired payment amount here. If this amount includes real estate taxes and insurance payments, remember to include the yearly taxes and insurance payments in the appropriate fields on this screen.
YEARLY INSURANCE: For homeowner's insurance, expect to pay between $250 and $500. Check with your insurance agent.