# Mortgage Calculator - DOC by MaryJeanMenintigar

VIEWS: 622 PAGES: 4

This is an example of mortgage calculator. This document is useful for conducting mortgage calculator.

• pg 1
```									Mortgage Calculator: http://mortgages.interest.com/content/calculators/earn-home.asp

At 6.000% your required income for a \$600,000 mortgage is \$224,920.

An income of \$224,920 provides for a maximum Principal, Interest, Taxes and Insurance (PITI)
payment of \$5,248.14. After taxes and insurance your principal and interest payment (PI) of
\$5,063.14 would pay for a \$600,000 mortgage, with an interest rate of 6.000% and a term of 15
years.

Mortgage Required Income Results
Term                                                                 15 years
Interest rate                                                        6.000%
Housing payment (PITI)                                               \$5,248.14
Principal & interest payment (PI)                                    \$5,063.14
Monthly housing expenses                                             \$185.00
Monthly liabilities                                                  \$0.00
Required annual income                                               \$224,920

Housing Expenses
Real estate taxes                            \$600.00 Semi-Annual
Hazard insurance                             \$600.00 Annual
Housing expenses                             \$0.00 Monthly
Mortgage insurance                           \$35.00 Monthly

Current Monthly Liabilities
Borrower            Co-borrower
Auto loans                                    \$0.00               \$0.00
Credit cards                                  \$0.00               \$0.00
Installment loans                             \$0.00               \$0.00
Student loans                                 \$0.00               \$0.00
Alimony & child support                       \$0.00               \$0.00
Other loans                                   \$0.00               \$0.00
Other                                         \$0.00               \$0.00

Qualify Calculation

Your \$5,248.14 monthly housing payment (PITI) is calculated by taking the higher of these two
calculations:
1. Monthly PITI / 28% = monthly required income
Which is: \$5,248.14 / 28% = \$18,743

2. (Monthly PITI + Monthly Liabilities) / 36% = Monthly required income
Which is: (\$5,248.14 + \$0.00) / 36% = \$14,578

Required Income for a Range of Interest Rates

Interest   Monthly       Monthly             Monthly           Mortgage      Required
Rate       Liabilities   Payment (PITI)      Payment (PI)      Amount        Annual Income
6.000%     \$0            \$5,248              \$5,063            \$600,000      \$224,920
6.250%     \$0            \$5,330              \$5,145            \$600,000      \$228,409
6.500%     \$0            \$5,412              \$5,227            \$600,000      \$231,928
6.750%     \$0            \$5,494              \$5,309            \$600,000      \$235,477
7.000%     \$0            \$5,578              \$5,393            \$600,000      \$239,056
7.250%     \$0            \$5,662              \$5,477            \$600,000      \$242,665
7.500%     \$0            \$5,747              \$5,562            \$600,000      \$246,303
7.750%     \$0            \$5,833              \$5,648            \$600,000      \$249,971
PHP Morgage Calculator

Purchase & Financing Information
Sale Price of Home: 900000
(In Dollars)
Percentage Down: 25
%
Length of Mortgage: 15
years
Annual Interest Rate: 6.5
%
Explain Calculations:
Show me the calculations and amortization
Calc ulate

Start Over

Mortgage Payment Information
Down Payment: \$225,000.00
Amount Financed: \$675,000.00
Monthly Payment: \$5,879.97
(Principal & Interest ONLY)

Residential (or Property) Taxes are a little harder to figure
out... In Massachusetts, the average resedential tax rate
seems to be around \$14 per year for every \$1,000 of your
property's assessed value.

Let's say that your property's assessed value is 85% of
what you actually paid for it - \$765,000.00. This would
mean that your yearly residential taxes will be around
payment.
TOTAL Monthly Payment: \$6,772.47
(including residential tax)

1 The down payment = The price of the home multiplied by the percentage down divided by
100 (for 5% down becomes 5/100 or 0.05)

\$225,000.00 = \$900,000.00 X (25 / 100)

2 The interest rate = The annual interest percentage divided by 100

0.065 = 6.5% / 100

The monthly factor = The result of the following formula:

3 The monthly interest rate = The annual interest rate divided by 12 (for the 12 months in a
year)
0.0054166666666667 = 0.065 / 12
4 The month term of the loan in months = The number of years you've taken the loan out for
times 12

180 Months = 15 Years X 12
5 The montly payment is figured out using the following formula:
Monthly Payment = 675000.00 * (0.0054 / (1 - ((1 + 0.0054)-(180))))

The amortization breaks down how much of your monthly payment goes towards the bank's
interest, and how much goes into paying off the principal of your loan.

```
To top