photo by Jane M. Sawyer
Feel free to use these calculators as much and as often as you wish. They can be a real eye-opener when you are going through your “what if” scenarios. If you need help with any of them, or want to discuss the results, don’t hesitate to give me a call at 303-909-2365.
Rent vs. Buy This calculates the net benefit of owning or renting, and includes the effects of taxes, mortgage amortization, PMI, maintenance, insurance and appreciation.
Mortgage Payment By entering a mortgage amount, interest, and term, a mortgage payment is easily determined. If the taxes and insurance are known, the full payment, principal, interest, taxes and insurance is determined.
Initial Qualifier This calculates the maximum mortgage amount based on qualifying ratios for a particular type of loan. Other factors not considered in this form also determine whether a person qualifies for a loan such as credit score, references, length of credit, ability to repay, and the property’s ability to secure the loan.
Homeowner’s Analysis This calculates the tax advantages and investment potential of homeownership.
Equity Accelerator This calculates the interest and time savings by applying additional principal contributions each payment. By making regular additional principal contributions on a fixed rate mortgage, interest will be saved and the term shortened.
Adjustable Rate Comparison This will compare an adjustable rate mortgage against a fixed rate mortgage to determine when the savings from the ARM will be exhausted in an effort to help the buyer determine the mortgage that will provide the least cost of housing. It assumes that the rate will adjust the maximum amount at each possible period.
Buyer’s Closing Costs Worksheet This is to serve as a preliminary estimate of the amount of cash you’ll need for the down payment and typical closing costs in general.
Cost of Waiting to Buy This shows a buyer what can happen to the payment if while they are waiting for the price of the home to come down, the interest rate were to go up. Due to the higher interest rate, the home may have a higher monthly payment even though the price of the home was less.
Your Best Investment This compares the future value of the amount of money necessary for the down payment on a home using three possible alternatives: a certificate of deposit, a stock investment, and purchasing the home. The comparison involves different amounts of risk that are not measured in the example.
If the Rate Goes Up This calculates the increased payment required that a rise in interest rate could cause. This analysis assumes that a borrower can qualify for a higher monthly payment. If the borrower cannot qualify for a higher payment, the form shows how much additional down payment is required if the rate goes up to purchase that specific home.
Isn’t It Worth It This is a powerful calculation that shows a buyer the monthly and daily cost of a slightly higher mortgage. The increased monthly payment may be insignificant to the overall purchase of the home that the buyer wants.
Interest Affects the Price This shows the correlation in interest to price. It demonstrates that a .5% change in the rate is approximately equal to a 5% change in price.
2/1 Buydown This illustrates how the home may be more marketable by offering financing concessions to the buyer rather than lowering the price. The buyer’s first year payment would be based on an interest rate 2% lower than the note rate. The second year’s payment would be based on an interest rate of 1% lower than the note rate. The remainder of the payments is at the note rate.
3/2/1 Buydown This illustrates how the home may be more marketable by offering financing concessions to the buyer rather than lowering the price. The payments are calculated at 3% less than the note rate for the first year and 2% less for the second year and 1% less for the third year. The payments for the fourth and remaining years of the mortgage are at the note rate.
Financing Concessions This form is meant to show an application of seller-paid funds toward a 2-1 Buy Down and Buyer closing costs. This could be used to increase the marketability of a listing or to construct a buyer’s offer.
80/10/10 Comparison This calculates the payments on the first and second mortgage that equal 90% and the blended rate which is compared to a 90% loan requiring PMI. Most loans greater than 80% loan-to-value requires Private Mortgage Insurance.
Will Points Make a Difference? Choosing between two loans with different interest rates can be difficult when there are other factors such as a different amount of points. This calculation develops a yield based on rate, points, and holding period to indicate which loan will have lower cost of housing.
Income Estimator The Income Estimator calculates the minimum amount of income and the maximum amount of debt needed to qualify for a mortgage at a specific rate.
