This is the amount that is to be borrowed. When borrowing, you should check with your lender to be sure the mortgaged amount is consistent with the number entered here.
Often lending instutitions will add fees and points buydowns to the mortgage amount. This will cause these calculations to differ from those of the lender.
Balloon Payment:
This is the amount remaining at the end of the mortgage term. For interest only loans, enter the full amount borrowed. The resulting payment will represent only interest.
Term:
This is the number of years over which the loan will be repaid. This field requires an entry.
Nominal Interest:
This is the interest rate charged on any remaining loan principal. If this calculator does not agree with those of the lending instution, check with the lender concerning principal borrowed, rates and first payment date. This calculator calculates first payment due in the month immediately following the loan.
Fair Market Value:
This is the market value of the property to be mortgaged. This value is used by lenders to determine whether or not the item mortgaged (i.e., property) qualifies for the loan and if mortgage insurance is required.
Mortgage Insurance (PMI):
This is the rate charged for insuring the mortgage. This is basically a surcharge on the mortgage and is an add-on to the quoted interest rate. Ask your lender for this number. If given an interest rate, just divide it by 12 to arrive at this value. This is a charge against the amount borrowed and the charge typically does not change with a decline in the principal, unless pursued by the borrower.
Assessed Tax Value:
This field is required to calculate the annual tax bill and the monthly portion of the escrow account. This is the property value assigned by the taxing authority, typically the county where the property is located.
Tax Rate (City + County + etc)/$100:
This field is the combined tax levied on each $100 of property value.
Fixes Fees Tax:
Some tax authorities will charge a fixed fee for solid waste disposal, storm water run-off and such. This calculator will add this figure to the annual tax bill and escrow calculation.
Association Fees:
Some neighborhoods have covenants that require membership in an association. This association is responsible for maintaining common grounds and duties detailed in the covenant and the property owner is required to contribute an association charge/dues annually.