"Bringing Buyers and Sellers Together"
Emil Ratti Northern, NJ
Mobile: 201 280-2884 Fax: 201 799-2626

How Much Can You Afford?



Let us help you find out what you can afford!

Our mortgage calculator will help you determine loan amounts, mortgage qualification, or whether you should be renting or buying.

Complete the fields below (e.g., Cost of Home, Down Payment, Monthly Income) and click Calculate Now. To view the different results of your calculation, click on the various tabs. To e-mail yourself a copy of your results, click the Receive this Detailed Analysis link.

Required Fields
Term In Years:     
Interest Rate:      %
Cost of Home:  $
Down Payment:  $  
Annual Insurance:  $  
Estimate Insurance to 0.43% of Cost
Annual Property Tax:  $  
Estimate Tax to 1.2% of Cost
Monthly Income:  $
Monthly Debt:  $
Optional Fields
Gross Debt Service Ratio (GDS):     
Total Debt Service Ratio (TDS):     
Condos Fees:  $
Results
  Receive this Detailed Analysis

Your Monthly Payments
 
Loan Amount:
Loan Insurance (%):
Total Loan (Mortgage) Amount:
 
Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:
Income Needed to Qualify for the Mortgage
Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:
What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:
 
Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] /
(monthly interest rate/ function of interest rate)
Renting
Monthly Rent: $
Annual Rental Increases:  %
Monthly Renter Insurance: $
Savings or Investment Rate:  %
 
Owning
Planned # of years in home: 
Yearly appreciation of the home:  %
Annual home maintenance:  %

Glossary of Mortgage Terms


ADJUSTABLE RATE MORTGAGE (ARMs):
These loans fluctuate, depending on the length of the adjustment period and the index used by the lender. There are 6-month ARMs, 5- and 7-year ARMs. Included in the legal documents signed at settlement are a promissory note and a deed of trust (the mortgage). Both of these documents spell out the terms and conditions of your ARM loan.

AMORTIZATION TABLE:
A table which mathematically calculates the monthly payment for each loan at the appropriate interest rate being charged by the lender.

FIXED 30-YEAR:
The monthly payment for this mortgage is calculated to be paid in full (including principal and interest) if borrower pays the same amount of money each and every month for 360 months (i.e. 30 years).

FIXED 15-YEAR
This loan is amortized over 15 years instead of 30. Since the loan will be paid off in full sooner, the monthly mortgage payment will be much higher than for a fixed 30-year loan.

INDEXED:
A statistical indicator providing a representation of the value of the securities which constitute it. Indexes often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured.

INTEREST ONLY MORTGAGE:
A mortgage structured so that only the interest payment is due for the first ten years of a loan's life. The loan then re-amortizes to pay both principal and interest payments for the remaining twenty years. On a traditional Principal & Interest loan, both the principal and interest are paid for the entire thirty year life of the loan (assuming no pay-offs or curtailments). An Interest-Only structure gives the borrower the ability to save hundreds of dollars a month in lower payments over the first ten years of a loan's life.


ADDITIONAL INDEXES

CERTICICATE OF DEPOSIT INDEX (CODI):
The Certificate of Deposit Index (CODI) only considers deposits when determining the value for the index. The CODI uses the monthly yields on 3-month certificates of deposit as published by the Federal Reserve Board.

COST OF SAVINGS INDEX (COSI):
This index is the weighted average of the rates of interest on the deposit accounts of the subsidiaries of Golden West Financial Corporation (aka World Savings). World Savings receives money from consumers in the form of deposits and lends money as home or other loans. The interest rates in effect on these deposits are the basis for the COSI index. The COSI adjusts monthly and has a one-month reporting lag.

TREASURY BILL (T-BILL) INDEXES:
These indexes are based on the results of auctions that the U.S. Treasury holds for its Treasury bills, notes and bonds. ARMs tied to the 3-, 6-, and 12-month T-Bills usually adjust once every 6 months, once each year, or once every 3 years accordingly. The 6-Month Treasury Bill index (6-MoT-Bill) is the most often used.

CONSTANT MATURITY TREASURY (CMT) INDEXES:
These indexes are the weekly or monthly average yields on U.S. Treasury securities based on the closing market bid. The CMT indexes are volatile and move with the market. They reflect the state of the economy, and quickly to economic changes. These indexes react more slowly than the CD index, but more quickly than the COFI or the MTA index.

12-MONTH TREASURY AVERAGE (MTA):
The Monthly Treasury Average, also known as 12-Month Moving Average Treasury index (MAT) is a relatively new ARM index. This index is the 12 month average of the monthly average yields of U.S. Treasury securities. It is calculated by averaging the previous 12 monthly values of the 1-Year CMT. Because his index is an annual average, it is more steady than the 1-Year CMT index.

These terms should be used only as a guide. Terms can be deleted, modified, and new terms added at anytime. It is advised that you consult with your financial advisor before making a decision. If you don't know of a financial advisor, please E-mail me and I will be more than happy to supply you with this  information.