Mortgage Cheat Sheets

What does EVERYONE want to know?

Thousands of clients have sat across the table from me – and the “experience” I reference on the home page – has taught me a few things.  There are a couple questions that it seems everyone wants to know!  First: “How much home can I get approved for?”  And that leads to the second and third questions: “How much is that going to make my payment?” and “How much cash out of my pocket is that going to take?”

Couple assumptions here: The payment “factors” include PITI – which stands for Principle & Interest; Taxes and Insurance (and Mortgage Insurance, if applicable) – in other words – an “impounded” payment – which is the payment you will need to qualify for.   Also: the interest rate used is slightly above the average during the past year.  Which, of course, is subject to change.  I will adjust the factors when there is a substantial move in the interest rate market.  I use a slightly above market rate so that the payment estimate is also slightly higher – wouldn’t you rather me tell you the payment is $2100 and then it comes out as $2060 – rather than the other way around?

 

The purpose of these factors is to allow you to get a ballpark figure of a payment – NOT an exact calculation – that’s when you NEED ME!!  These figures are to give you a “rule of thumb” so you can shop for your home – as an educated consumer.

 

See the Tabs (below) for the scenario that most closely matches your circumstances – to see what your payment would be – and how much cash you’d need.

 

Minimum Down / FHA
10% Down Conventional
20% Down Conventional