Currently we have several mortgage calculators that you can use to determine how much you can afford monthly, cost estimators to calculate closing costs and amortization calculators to determine how long it will take to become debt free.
The three calculator tools we currently offer are:
It is prudent to dedicate no more than 1/3 of your monthly income to your monthly housing expense.
Housing expense includes:
X Monthly Mortgage Payment
X Property Taxes
X Hazard Insurance
Since mortgage payments are paid monthly it is easy to calculate. To determine your monthly property taxes take your annual tax bill and divide it by 12 to calculate your monthly property tax expense. Do the same for your annual hazard insurance by taking your annual insurance premium and divide it by 12 to calculate your monthly hazard insurance expense.
Add the three amounts together to calculate your monthly housing expense. Take the calculated number and divide it by your monthly income to calculate a ratio which will be considered your monthly housing expense.
Additionally many people have other expenses in their lives such as car payments and credit card debt. It is prudent to not have your total monthly expenses exceed 50% of your monthly income. Our company does have many loan programs that will provide for loan approvals with expense ratio higher than normally accepted.
Closing costs are normally associated with the origination of real estate financing and loan program. The categories listed are normal and customary for most loan programs offered by our company. Our loan officers can assist you in determining options available to offset and or eliminate normally scheduled closing costs.
The total calculated closing costs can be divided by the loan amount to determine a cost ratio to allow you the opportunity to compare different loan programs based on closing costs.
There are industry averages for closing costs for difference types of loan programs offered by our company. Ask one of our loan officers for a printout disclosure of closing costs for loan programs offered by our company and how they compare with industry standards.