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Home Mortgage Calculator and Mortgage Loan Information
Below you'll find a loan calculator. You can easily see how much your interest rate affects your monthly mortgage payment. Inaccurate or incomplete information on your credit report can adversely affect your credit score. (Click if you want to find your credit score.) But you can correct those errors, repair your credit and lower your interest rate and the money you have to put out each month for your mortgage payment.
Mortgage Payment Calculator Based on Your Mortgage Rate
This table can be used as a mortgage loan calculator, auto loan calculator or for any other type of loan.
Steps to Applying for a Loan
You may want to check out our information on the eight steps involved in getting a loan, from the first step of figuring out how much you need, to the last step where you sign the papers.
Before You Visit a Home Mortgage Lender Company
Becoming familiar with the following mortgage terms will help you to get the best mortgage deal you can. You'll learn about different types of mortgages and all the possible costs associated with the closing. There may be several you hadn't known about. This knowledge will help you better plan for how much money you will need to have when you sign for your mortgage loan.
Mortgage Loans Terminology
Adjustable Rate Mortgage (ARM)
A loan in which the interest rate is periodically adjusted. It can move up or down. The change is based on a preselected index, such as the treasury bill rate or prime rate.
A mortgage that has fixed monthly payments which amortizes over a certain period of time. The unpaid balance will be due as a lump sum on the balloon maturity date.
The final lump sum payment that is due when your balloon mortgage matures.
An adjustable rate mortgage may have a limit on how much the interest rate or mortgage payments may increase. This is the Cap.
NOTE: You should be charged either a Loan Origination Fee or Discount Points, not both! It is good to know that when you're shopping around for a mortgage.
The difference between the market value of your home and what you owe on it, that is, the mortgage and any liens. So if you home is worth $300,000, but you owe the bank $250,000, your equity is the difference or $50,000.
Good Faith Estimate
An estimate of all the charges you will incur in connection with the loan.
Your lender may guarantee an interest rate or other terms of the loan for a number of day. This is the lock-in period.
Points are fees that the mortgage lender can charge when giving you a loan. It is a one-time charge which you pay at the closing. Points will discount (decrease) your interest rate. A point equals one percent of the mortgage loan amount. In a sense, paying points mean you are prepaying interest when the loan is taken out. When you pay points, the lender will charge a lower interest rate.
Some lenders will charge you a fee which can be between 2% and 4% of your loan amount if you pay off your mortgage in full before its end date. If you don't plan to stay in your house for the full term of the mortgage, be sure there is no prepayment penalty in the fine print of your loan.
Private Mortgage Insurance
This is insurance that lenders require you to have if you put down less than 20%. It protects them against loss if you default on the loan.
This is interest you'll pay if you don't make your regularly scheduled payment on time.
Understanding Mortgage Fees – Closing Costs
When applying for a mortgage, your lender is required by the Federal Real Estate Settlement Procedures Act to provide you with a good-faith estimate of the fees due at closing. This document, called the good-faith estimate, or GFE, is supposed to be provided to you within three days of applying for a loan. The requirement is satisfied if the good-faith estimate is mailed within three days.
If this is your first mortgage, you may be shocked at all the fees, but these are normal and can include the following . We have included an approximation of the amount normally charged.
Credit Report Fees
The cost to obtain your credit report, which shouldn't be more than $50.
This fee covers the cost of an independent appraisal of the home you want to purchase. The lender requires this estimation of the market value of the house to ensure that it is worth the purchase price. The lender pays for the appraisal at the time the service is performed then adds it to your fees. $250 - $350.
Commitment Fees and Loan Evaluation Fees
These are charges for insuring against rising interest rates and for assessing loans. Try to avoid them.
Lenders use couriers to deliver documents and charge you for the service. Some lenders will list this fee individually. Some will include it in the administration fee or processing fee. The charge varies depending on the courier used.
One point equals one percent of the mortgage amount. (See above for more of an explanation.)
This is charged on most loans and is usually about $200. These documents may include the mortgage note, deed of trust, Truth in Lending forms, and escrow instructions.
Flood Zone Certification
The bank wants to know if your house is in a flood zone. Normally, an independent company is used to research the FEMA (Federal Emergency Management Agency) maps to determine if the home lies in a flood zone. This one-time fee covers the life of the loan. The FEMA maps are checked annually to determine if your property has moved into or out of a flood zone. If your property is reclassified at any time during the life of the loan, the lender will notify you to either drop or purchase flood insurance for your property. Approximately $25.
If the property you want to purchase is located in a flood zone, Federal law requires you to purchase flood insurance.
This is the amount of interest that accrues between the time the mortgage is funded and the time that the first month's interest is paid.
Usually for termite inspection. All FHA loans require a termite report and clearance.
Loan Application Charges
This covers the initial costs of processing your loan request. Application fees are charged because of consumer can do comparison shopping. Banks could lose a lot of money processing loans that are never taken out if they didn't charge an application fee.
The company which handles the initial application and processes the loan will charge a loan origination fee. This fee may amount to an additional point or more (1% of the loan amount). When negotiating the mortgage, you should either be charged an origination fee or points--not both.
A licensed notary public will swear to the fact that the person named in the documents (you) did, in fact, sign them. Usually $40 - $120.
Private Mortgage Insurance (PMI) Application Fee
When your down payment is less than 20%, you are required to have private mortgage insurance (PMI). When processing your loan, two "loan packets" need to be prepared - one is for the lender underwriter; one for the PMI underwriter. You may be charged a fee for this additional processing. This is often provided as a part of the loan package.
This covers the cost of hiring employees to process the loan. Sometimes direct lenders, such as banks, waive this fee. $300
The lender wants to be sure your property is worth what you agreed to pay for it. This can run between $250 and $400.
Tax and Insurance Escrow Fees
Insurance is usually required for mortgages with down payments of less than 20%. Funds in escrow accounts, usually held in a bank, assure mortgage lenders that home owner's insurance and real-estate taxes will be paid on time.
Title Insurance assures the lender that there are no outstanding liens on the property. $200 - $500.
Usually charged when interest rates are expected to rise. You pay to lock-in a favorable or lower rate. Be sure you know exactly how long the lock-in period will last.
Your lender may pool your mortgage with others and sell it in the secondary market as a security that is backed by a mortgage. This should be between $350 - $650.
Wire Transfer Fee
The lender wire transfers the funds to the escrow company handling the loan closing. $30-50
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