Buyers Cash To Close Mortgage Calculator

• Figure out how much cash you need to purchase a property
• This lets you calculate all of your closing costs so you stay on top of your loan
• This mortgage loan calculator can help you avoid last minute expensive surprises
• This also lets you compare how different levels of debt load affect your required income

Loan Comparison Mortgage Calculator Explained

This mortgage calculator compares different amounts of cash you will need to buy a property under different scenarios.

Some of these costs stay the same across all of the different scenarios, and some change a lot.

This loan comparison mortgage calculator uses the following factors that remain the same under each scenario:

• the purchase price of the home
• the length in years of the loan
• origination fee
• discount points
• appraisal fee
• credit report
• mortgage company title insurance
• other closing fees
• prepaid taxes
• hazard insurance
• recording and other fees
• homeowner fees

Items that change under different loan scenarios include:

• the down payment

This item can be stated as a specific dollar amount or as a percentage of the purchase price. The calculator compares other down payment scenarios and lets you know how much you can expect to pay in closing costs and on a monthly basis.

This is obviously the most important part of the calculator. The more you pay as a down payment up front, the less you have to pay monthly. An very important point about this is that the monthly payment changes slowly as the percentage down increases. Compare 10% down and 15% down as a monthly payment. Many people decide to put down less when they see how their monthly payment is not reduced by as much as they hoped with a larger down payment.

• the borrower's debt ratio

The last item, the borrower's debt ratio, is critical to understanding how this mortgage calculator can help you. The debt ratio is the percentage of monthly debt payments compared to your pretax monthly income. If 40% of your household pretax income is used to pay monthly debt, than your debt ratio is 40%. Different lenders have different levels at which they will lend. Some go over 50% debt ratios. The debt ratio is something you have to be comfortable with. Remember, this is pretax income, so taxes also eat up a large part of your income.