A fixed-rate mortgage, is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float".
An adjustable rate mortgage or a variable rate mortgage is a mortgage which has a lower initial interest rate and lower monthly payments but the rate and the monthly payment will adjust after the initial term. We can offer a 3/1, 5/1, 7/1 and 10/1 adjustable rates. These loans have a fixed interest rate and fixed monthly payments on their first 3, 5, 7 and 10 years.
Interest only loans offer a lower monthly payment as you are only paying the interest on the loan during the interest only period. At the end of this period, your monthly payment will increase so you could negotiate for another interest only loan or convert the loan to a principal and interest payment (fully amortized) loan.
A construction loan is typically a short term loan used to pay for the cost of building a home. It is offered for a set term (usually around a year) to allow the time to build your home. At the end of the construction process, when the house is finished you will need to get a new loan to pay off the construction loan.
You can use 12 month bank statements in lieu of 2 years tax returns. This program is designed for self employed borrowers to qualify by analyzing their cash flow through their bank statements.
You can use the most recent tax returns in lieu of 2 years tax returns to qualify for a mortgage.
This program is designed for borrowers who have no credit, no social security number, no green card or visa and no US tax returns.
This program is designed for borrowers who would like to buy a new home before selling their existing home. The lender may use the equity in their current home as part of the down payment to purchase the new home.
You can calculate the mortgage loan amount from the price of the real estate by providing the down payment percentage.
If you know the mortgage amount you can afford and the cash down payment percentage required, you can calculate the affordable real estate price.
Or if you know the price of the real estate and the loan amout and enter "0" for the down payment percentage, the calculator will calculate the down payment amount and percentage.
Points, Annual Property Taxes, Annual Insurance and Private Mortgage Ins. (PMI) are all optional. If you enter values, the periodic portion of each will be calculated and shown on the schedule. Property taxes and insurance are combined under escrow.
If a borrower does not have cash to cover at least 20% of the purchase price, some lenders will require the borrower to purchase private mortgage insurance (PMI) to cover against a possible default. Premiums are typically 0.5% to 2.0% of the original loan amount. The borrower can drop the insurance coverage once the mortgage balance is less than 80% of the original purchase price. The calculator handles this automatically. (There may be other conditions as well under which the lender will no longer require PMI. One such case might be apprciation of the real estate.)
Points are charges that are normally due at closing. Borrowers (normally only in USA) may select to pay a lender "points" up front in exchange for a lower interest rate. Points are expressed in percent and are calculated on the amount borrowed. 3 points on a $200,000 mortgage equals $6,000. If the user enters points, this calculator includes their value in the summary and as part of the total payment at loan origination on the payment schedule.
The term (duration) of the loan is expressed as a number of months.
All calculators will remember your choice. You may also change it at any time.
Clicking "Save changes" will cause the calculator to reload. Your edits will be lost.