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Mortgage Calculator - DOC

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					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
                                   $10,710.00 This could add $892.50 to your monthly
                                   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.

				
DOCUMENT INFO
Description: This is an example of mortgage calculator. This document is useful for conducting mortgage calculator.