mortgage down payment and closing cost calculator

There's more than the mortgage amount to consider when looking at the costs Our mortgage calculator helps you work out the mortgage payment plan that is. Calculate Your Mortgage, Land Transfer Tax, Monthly Payments, the Canada Mortgage and Housing Corporation, is that your monthly housing costs should not. Use this calculator to help estimate the total closing cost to purchase a home. Loan amount: Total loan amount after down payment and any financed fees.
mortgage down payment and closing cost calculator

: Mortgage down payment and closing cost calculator

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It's easy for homebuyers, especially first-timers, to focus on the sticker price of a home or the down payment amount, without factoring in "closing costs." A vague term that covers a collection of fees, closing costs can be tricky to nail down and yet may add up to a significant expense -- usually ranging from 2% to 5% of the amount you're borrowing.

As the name infers, closing costs are tallied up just as you're finalizing your mortgage and about to take over the property title. Most are paid by the buyer, but the seller may be on the hook for a few too. 

Even if you're taking advantage of historically low interest rates, closing costs can be significant and are worth including in your home-buying budget. Here's what you need to know to avoid any last-minute surprises.

What are mortgage closing costs? 

Closing costs refer to the upfront fees charged to secure a loan and transfer the ownership of a property, according to the Consumer Financial Protection Bureau. Sometimes they're referred to as settlement costs.

They cover a lot of behind-the-scenes transactions and paper pushing. The realtors, bank, title company, appraisers and document-drafting lawyers all need to be paid. Some common closing costs include title insurance, government taxes, appraisal fees, tax service provider fees and prepaid expenses, according to a list published by the Consumer Financial Protection Bureau.

The buyer usually ends up paying most of these costs -- but standard arrangements vary among states and from deal to deal. Sometimes, a buyer can negotiate to have the seller pick up some of the closing costs in exchange for a higher overall sale price. Buyers may also have a lender chip in on closing costs. But, again, that could result in a higher loan amount or interest rate.

What do closing costs pay for? 

Your closing costs will depend on your particular transaction and can be impacted by interest rates, local insurance fees, tax rates, local appraisal fees and other factors. But here's a general breakdown of some of the common expenses covered by closing costs: 

Title insurance: This protects lenders from financial losses stemming from problems related to a property title, such as liens or ownership conflicts.    

Government taxes: These could include the property tax on the home, local government fees -- such as one for recording the sale of the property -- and mortgage down payment and closing cost calculator tax for transferring the title from the seller to the buyer. 

Appraisal fees: These are charged by an appraiser for coming to the property and assessing the best high yield savings rates value to determine an appropriate loan amount. 

Tax service provider fees: These help pay for third parties to keep track of property tax payments and other tax monitoring duties. 

Prepaid expenses: These are items like homeowners insurance, property taxes and interest until the first payment is due. 

How much are closing costs? 

Most lenders and industry watchers will tell you that your closing costs, on average, will cost you somewhere between 2% and 5% of the amount borrowed. 

The national average closing costs for a single-family property were $5,749 including taxes and $3,339 excluding taxes in 2019, according toClosingCorp, which analyzes closing cost data for the industry. 

For a more specific estimate, we used a closing cost calculator from banking service BBVA to show what these fees might look like currituck county public schools a $250,000 loan. After entering a 20% down payment, 30 years for the term and a 4% interest rate, the total amount of closing costs was calculated at $7,042.

What are closing documents? 

One of the key documents you'll get before the final signing is the closing disclosure, which outlines the details about your loan, including your closing costs. The lender should provide you with that document three business days before the scheduled loan closing.

It's very important to review this document to make sure currituck county public schools the information is correct and that the terms of the loan are accurate and clear. This closing disclosure explainer might help you as you review the document. Among other advice, it mentions making sure that closing costs match the most recent loan estimate. 

Other important closing documents include:

Promissory note: a legal document stating that you will repay your mortgage.

Mortgage, security instrument or deed of trust: gives the lender the right to take your property by foreclosure if you do not pay your mortgage according to the terms you've accepted.

Initial escrow disclosure statement: details the charges that you pay into an escrow each month.        

Right to cancel form: outlines the rules for when and how you can cancel your loan, usually used as part of the refinancing process.

If you have questions about any of these, ask your lender, broker, or lawyer for help. 

Are closing costs tax deductible?

The IRS says the only closing costs you can deduct are the points you pay to reduce your home mortgage interest rate and real estate taxes you're required to pay upfront. If you itemize, you can deduct these costs during the year you buy your home.

The IRS also has a list of closing costs you can add to the basis of your home. They include things like legal and recording fees and surveys. 

Tax rules are always changing, which is why we advise talking to a tax professional about what you can and can't deduct from the closing of your house. 

Tips and tricks for saving on closing costs 

Saving all your cash for the down payment is a home buying mistake to avoid. Closing costs are additional thousands of dollars on top of the down payment you might not have been expecting. 

But there are ways to save.

"In the seller market, we have offered to reimburse borrowers for their appraisal cost, have a network of title companies that will reduce title fees and provide grant programs for qualifying borrowers to cover down payment and some closing costs," says Steve Twyman, branch manager with Mortgage Experts "There are options for lender credits as well."

Of course, this is where having a strong credit rating will pay off, Twyman adds.

Orlando Miner, principal at Miner Capital Funding, LLC, recommends seeing if you can get the seller to pay for closing costs. "This is a common occurrence so don't feel shy about asking for this. Remember the worst that can happen is they can say 'no.'" 

But again, this will be harder to negotiate when it's a seller's market, as it is right now in many regions of the US.

Miner adds that timing is key. For example, closing at the end of the month will save you on prepaid interest. "The rule is you have to pay prepaid interest from the date you close to the end of that month. So the closer you close to the end of the month the less money you pay."

You might also want to play around with closing cost calculators. These can show you at least roughly how much you may be paying for closing costs as one lump sum. 

Источник: https://www.cnet.com/personal-finance/mortgages/mortgage-closing-costs-what-they-are-and-how-much-youll-pay/

Pennsylvania Closing Cost and Mortgage Calculator

This estimate assumes an owner occupied residence or condominium.FIXED and ARM refers to loans underwritten to Fannie Mae guidelines (i.e. 5%, 10%, 15%, etc.). These loans are commonly called "conventional" loans. You can override the mortgage insurance premium with the PMI

Down Payment Calculator

The three calculations below offer different ways to help calculate an estimated down payment.

Use the Upfront Cash Available

If the amount of upfront cash available and down payment percentages are known, use the calculator below to calculate an estimate for an affordable home price.

 

Home Price: $217,391


Home Price$217,391
Down Payment$43,478
Closing Costs$6,522
Loan Amount$173,913
Monthly Payment$750


Use the Home Price

If the home price and down payment percentages are known, use the calculator below to calculate an estimate for an amount needed in cash available for upfront costs.

 

Cash Needed: $46,000


Down Payment$40,000
Closing Costs$6,000
Down Payment + Closing Costs$46,000
Loan Amount$160,000
Monthly Payment$690


Use the Home Price and Upfront Cash Available

If the home price and amount of upfront cash available are known, use the calculator below to calculate an estimate for a down payment percentage.

 

Down Payment: 22.0%


Down Payment$44,000
Down Payment Percentage22.0%
Closing Costs$6,000
Loan Amount$156,000
Monthly Payment$673


What is a Down Payment?

A down payment is the upfront portion of a payment that is often required to finalize the purchase of items that are typically more expensive, such as a home or a car. When purchasing a home, after a down payment is paid by a home-buyer, any remaining balance will be amortized as a mortgage loan that must be fulfilled by the buyer. In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.

Closing Costs

It is important to remember that a down payment only makes up one upfront payment during a home purchase, even though it is often the most substantial. There are also many other costs that may be involved, such as upfront points of the loan, insurance, lender's title mortgage down payment and closing cost calculator, inspection fee, appraisal fee, and a survey fee. A very rough estimate for the amount needed to cover closing costs is 3% of the purchase price, which is set as the default for the calculator.

Different Loans, Different Down Payment Requirements

In the U.S., most conventional loans adhere to guidelines and requirements set by Freddie Mac and Fannie Mae, which are two government-sponsored corporations that purchase loans from lenders. Conventional loans normally require a down payment of 20%, but some lenders may go lower, such as 10%, 5%, or 3% at the very least. If the down payment is lower than 20%, borrowers will be asked to purchase Private Mortgage Insurance (PMI) to protect the mortgage lenders. The PMI is normally paid as a monthly fee ally auto bill pay phone number to the mortgage until the balance of the loan falls below 80 or 78% of the home purchase price.

To help low-income buyers in the U.S., reconstruye con los pedazos amazon Department of Housing and Urban Development (HUD) requires all Federal Housing Administration (FHA) loans to provide insurance to primary residence home-buyers so that they can purchase a home with a down payment as low as 3.5% and for terms as long as 30 years. However, home-buyers must pay an upfront mortgage insurance premium at closing that is worth 1.75% of the loan amount, on top of the down payment. In addition, monthly mortgage insurance payments last for the life of the loan unless refinanced to a conventional loan. For more information about or to do calculations involving FHA loans, please visit the FHA Loan Calculator.

Also, in the U.S., the Department of Veterans Affairs (VA) has the ability to subsidize VA loans, which do not require a down payment. Only two other entities, the USDA and Navy Federal, allow the purchase of a home without a down payment. For more information about or to do calculations involving VA mortgages, please visit the VA Mortgage Calculator.

Large vs. Small Down Payment

Paying a larger down payment of 20% mortgage down payment and closing cost calculator more, if possible, usually lead to qualification for lower rates. Therefore a larger down payment will generally result in the lower amount paid on interest for borrowed money. For conventional loans, www prudential com online retirement com at least a 20% down payment when purchasing a home removes the need for Private Mortgage Insurance (PMI) payments, which are sizable monthly fees that add up over mortgage down payment and closing cost calculator of the risks associated with making a larger down payment is the possibility of a recession. In the case of a recession, the home value will likely drop, and with it, the relative return on investment of the larger down payment.

Making a smaller down payment also has its benefits, the most obvious being a smaller amount due at closing. Generally, there are a lot of different opportunity costs involved with the funds being used for a down payment; the funds used to make a down payment can't be used to make home improvements to raise the value of the home, pay off high-interest debt, save for retirement, save for an emergency fund, or invest for a chance at a higher return.

Down payment size is also important to lenders; generally, lenders prefer larger down payments. This is because big down payments lower risk by protecting them against the various factors that might reduce the value of the purchased home. In addition, borrowers risk losing their down payment if they can't make payments on a home and end up in foreclosure. As a result, down payments act as an incentive for borrowers to make their mortgage payments, which reduces the risk of default.

Where to Get Down Payment Funds

Savings—Most home-buyers save up for their down payments by setting aside savings until they reach their desired target, whether it's 20% or 3.5%. Having the savings in an interest-bearing account such as a savings account or in Certificates of Deposit (CDs) can provide the opportunity to earn some interest. Although placing down payment savings in higher risk investments such as stocks or bonds can be more profitable, it is also riskier. For more information about or to do calculations involving savings, please visit the Savings Calculator. For more information about or to do calculations involving CDs, please visit the CD Calculator.

Piggyback Loan—In situations where the home-buyer doesn't have sufficient funds to make the required down payment for a home purchase, they can try to split their mortgage into two loans. A piggyback mortgage is when two separate loans are taken out for the same home. Generally, the first mortgage is set at 80% of the home's value and the second loan is for 10%. The remaining 10% comes from the home-buyer's savings as a down payment. This is also called an 80-10-10 loan. Home-buyers may use piggyback mortgages to avoid PMI or jumbo financing.

Down Payment Assistance Programs—Local county or city governments, local housing authorities, and charitable foundations sometimes provide grants to first-time home-buyers. State-wide programs can be found on the HUD website. Down payment assistance is usually only reserved for need-based applicants purchasing a primary residence. Grants can come in the form of money applied to a down payment or an interest-free loan meant to supplement a main mortgage. Applicants usually still need to have decent credit and documented income. Grants may need to be repaid if the home is sold.

Gift Funds—FHA loans allow for the down payment to be a gift from a friend or family member, and the entire down payment can be considered a gift as long as there is a gift letter stating that it is a gift that does not require repayment.

IRA—The principal contributed to a Roth IRA (individual retirement account) can be withdrawn without penalty or tax. In contrast, contributions from a traditional IRA will be subject to regular income tax as well as a 10% penalty if the contributions are withdrawn prior to the age of 59 ½. However, there is an exclusion that allows a person to withdraw $10,000 from both types of IRAs (including earnings for a Roth IRA) without penalty or tax for the purchase, repair, or remodeling of a first home. The funds can also legally be used to purchase a home for a spouse, parents, children, or grandchildren. The only caveat is that the home-buyer is only given 120 days to spend the withdrawn funds, or else they are liable for paying the penalty. Spouses can each individually withdraw $10,000 from their respective IRAs in order to pay $20,000 towards their down payment. The $10,000 limit is a lifetime limit.

401(k)—It is possible to take out a loan for either up to $50,000, or half the value of christian financial credit union chesterfield michigan 401(k) account, whichever is less. This loan will require repayment with interest, but there will be no tax or penalties on the loan amount. Interest and principal will be paid back to the 401(k) owner. However, taking out a loan, especially a large one, can affect qualification for or ability to repay a mortgage. Most plans only give five years to repay the loan, and borrowing a large amount can result in substantial payback pressure.

Источник: https://www.calculator.net/down-payment-calculator.html

Mortgage refinance costs

Take the next step.

Prequalify

Use this mortgage refinance cost calculator to get an estimate.

This mortgage refinance cost calculator provides customized information based on the information you provide. But, it also makes some assumptions about mortgage insurance and other costs, which can be significant.

How much does it cost to refinance a mortgage?

Before you refinance, make sure you’re aware of the costs associated with doing so. The cost to refinance a mortgage can vary depending on several factors. For example, the interest rate, credit score and loan amount. Our mortgage refinance cost calculator can help you figure out how much it will cost to refinance your mortgage.

Get more information about refinancing.

Learn about your refinancing options.

Traditional Refinance

A Traditional Refinance might be a good option if you’re looking for a lower interest rate or a shorter term. It’s a low-cost way to get the most our of your home.

Learn more about a Traditional Refinance.

Cash-out Refinance

Take advantage of the equity in your home. Use it to pay for college tuition, home improvements or to buy a vacation home.

Get started with a Cash-out Refinance.

Existing customer credit offer

Current U.S. Bank customers with an existing first mortgage or a U.S. Bank Personal Checking Package the huntington national bank inc be eligible for a customer credit.1 Take 0.25% of your next first mortgage and deduct it from the closing costs, up to a maximum of $1,000 off.2

Learn how to save on your next mortgage loan.

Smart Refinance

This no-cost mortgage refinancing option can save you time and money. Take advantage of a simplified application process, flexible terms and no closing costs3 with a U.S. Bank Smart Refinance.

See the benefits of a Smart Refinance.

Estimated monthly payment and APR example: A $225,000 loan amount with a 30-year term at an interest rate of 3.875% with a down payment of 20% would result in an estimated monthly payment of $1,058.04 with an Annual Percentage Rate (APR) of 3.946%.4

Источник: https://www.usbank.com/home-loans/mortgage/mortgage-calculators/mortgage-refinance-cost-calculator.html

Home Down Payment Savings Goal Calculator

Purchasing a home is one of the most important decisions you'll ever make. This calculator will help you create a savings plan towards your home purchase down payment. Simply use your purchase price to calculate how much you need to save each month. Fine-tune your plan by adjusting any of the inputs including purchase price and the number of years you wish to save. Click here to estimate how much home you can afford.

Saving up for a Down Payment on Your Home

Downpayment.

Are you thinking about purchasing your first or second home? If it's your first home, this is an exciting and terrifying time. You want to get the best mortgage rate possible, and you're not sure about the different programs out there. There are several loan programs for first time home buyers, veteran's affairs loans, and government programs that help people get into their dream homes. This article will go over those options; we will also list the average home amount around the United States and some of the factors that go into the pricing. We'll also talk about down payments and why it's a good idea to have at least 20% saved.

What are the Average Home Costs by Region, and What Makes Them Fluctuate?

Depending on where you want to settle in and buy you home, you could be paying a much higher price.

  1. Employment. The number of people who have a steady job and can afford a mortgage has a large effect on housing prices. When the time comes that it's less expensive to get a mortgage and interest rates are low, more people become eligible. This increases the number of homebuyers in the market, and this can drive home prices up.
  2. Housing Bust. In 2006, the housing market started a downward slide. People lost their jobs and their ability to afford their mortgage payments. Once the default rate skyrocketed, lenders began suffering huge losses, and they reached out to mortgage lenders for assistance. They tightened the credit restrictions further, and this made the home buyer numbers plummet. This caused the bottom to fall out of real estate prices, and they went to extreme lows. However, since they tightened credit restrictions, these homes sat empty because there were no eligible buyers.
  3. Interest Rate. Inflation also plays a role in housing prices rising and falling. In places where there is high inflation, house prices tend to go up. However, the housing markets tend to fall if the inflation in the area is higher. When interest rates and inflation goes up, the housing prices fall; however if the interest rates and inflation drop, interest in buying increases.
  4. Location. One of the biggest factors that go into a home's price is its location. Location, location, location is also known as the prime three rules of real estate. Typically, the closer the homes are to a downtown area in a city, the more expensive they are. As they start moving away, the prices begin to decline. This is because homes that are closer to the downtown are in more demand, so it drives the prices up.
  5. Supply and Demand. If you want to buy a home in a more trendy neighborhood, there may only be a limited amount to purchase, and you're competing with other buying. If the people or agency that is selling the house know this, they'll list the house accordingly. From a sellers perspective, there are usually more buyers interested than not, so they can set the price.

The Average Housing Costs by Region

Average Sale Price 2015Median Sale Price 2015Average Sale Price 2016Median Sale Price 2016
Midwest$331,000$278,200$334,700$284,400
Northeast$618,500$459,600$577,300$448,200
South$322,200$274,600$330,600$284,000
West$418,700$348,800$443,100$381,300
National Average$360,600$296,400$372,500$316,200

source: Census.gov

What is the Typical Down Payment Amount and Why?

If you're planning on purchasing a home, almost every lender will require some down payment unless you're using a particular loan option. There is a range that most lenders will expect you to have, and it can change depending on your credit score, income level, and your chosen lending program. Your banks use either your Vantage score or a FICO score to determine your down payment amount. It is a good idea to ask your lender of choice which one they use so you know what one you should look at.

The Average Price

The average amount you can expect to put down on your home is 20% of your home's total value. Also, the Home Buying Institute has a down payment estimate range from 0% to 20%. If you're trying to avoid having to use more expensive private mortgage indigo credit card customer service email, you may want a down payment amount of more than 20%. This ensures that your chosen lender is protected if you default on the mortgage and stop making payments. It also varies by location. For example, if you're looking at a million dollar home, your down payment could be $200,000 or more, and this price could buy you an entire house in another part of the country.

When You Can End up Paying More

If you have a lower credit score or a poor payment history, the mortgage lender might ask for a higher down payment amount. You want to aim for a credit score of 680 or higher because this is where you'll start getting offered a lower amount for your down payment. If you have a score from 620 to 679, you're considered to have fair credit. Anything below that is considered high-risk by lenders. However, if you're willing and able to pay more up front, your mortgage lender may offer you lower interest rates or shorter loan terms.

When You Can End up Paying Less

If you have great credit, your lender will usually ask for a lower down payment amount because you have a history of being financially responsible and making your payments on time. You might also get a lower rate if you agree to have and pay mortgage insurance on your home. This insurance helps to protect your lender in case you stop making payments or you default. However, mortgage insurance increases your monthly mortgage payment. Many lenders will remove this mortgage insurance after you pay off 20% of your balance.

FICO and Vantage Credit Scores

RangeFICO Score Vantage Score
Poor579 and Lower550 and Lower
Fair580 to 669550 to 649
Good670 to 739650 to 699
Very Good740 to 799700 to 749
Excellent800 and Up750 and Up

What Goes into Deciding Your Vantage or FICO Score?

FICO Score FactorsVantage Score Factors
Credit History15 percent21 percent
Credit Inquiries10 percent5 percent
Debt Level30 percent11 percent
Payment History35 percent40 percent
Types of Accounts10 percentFactored into Credit History
Utilization and Available CreditFactored into Debt Level23 percent

What Advantages do People Get by Putting 20% Down?

If you're prepared to put 20% down as your down payment, you can get several advantages.

  • Equity Building. If you put a significant down payment down or 20%, it instantly builds the equity level in your home. This will act as a safeguard if the home buying market begins to fall.
  • Improves Your Chances. If you have 20% to put down on your mortgage, lenders are more likely to work with you and give you the funding. It lowers your risk of not paying them back. Doing this also shows them that you're serious and you are willing to work for your home and to have the payments that you need.
  • Lower Interest Rate. If you pay less than 20% for a down payment, you will pay more in interest over the life of your loans. By paying the 20% down payment amount, you lender will lower your overall interest rate. This could potentially save you thousands over the life of your mortgage.
  • No Private Mortgage Insurance. If you put 20% down, you'll avoid having to have private mortgage insurance added on to your monthly payment. This is extra insurance that is designed to protect your mortgage lender, and they add a percentage that acts as a private insurance policy for the lender. This will drive your payment up.
  • Recent Regulation Change. The Consumer Financial Protection Bureau just changed their regulations regarding mortgages. Prospective home buyers now have to have a 43% debt-to-income ratio to qualify for a mortgage. This means that you have to add up your mortgage payments, property taxes, credit card debt, and car or student loan payments. This total has to be less than $43 out of every $100 in income you earn each month. By putting 20% down, you decrease your mortgage payment and decrease your debt-to-income ratio.
  • Smaller Payments. If you put 20% down, you will have less of a balance on your mortgage. This will make your mortgage payment amount less each month, and you will have an easier time affording it.

What Loan Programs Let People Have a Lower Down Payment?

If you can't afford a 20% down payment but you are still interested in purchasing a home. There are several programs available that you can apply for, and they will help you get into your home.

FHA Loan

An FHA loan is a loan through the Federal Housing Administration. The loan will require a smaller down payment and smaller closing costs than other traditional loans. The down payment is around 3.5% of the purchase cost, and mortgage insurance is included in the monthly mortgage payment. This loan will allow a family member, charity, or grant to cover to give a financial gift that can cover 100% of the 3.5% down payment amount.

First-Time Homebuyers

Some programs cater to first-time homebuyers that allow them to pay no or a very low down payment on their mortgage. Some of these programs are offered by an individual bank or lender, and there are several of them bank of america atm locations las vegas nv are offered through the government. The HomePath Ready Buyer program will give first-time homebuyers up to 3.1% of the total home's value to put toward the closing costs. All you have to do to get this 3.1% just for completing a homebuyer education course.

Good Neighbor Next Door

This program is focused on giving housing opportunities for emergency medical technicians, firefighters, law enforcement, and teachers. You have to commit to living in the home for at least 36 months to be eligible for this program. If you do this, you could receive up to 50% off the listing price of the home. The homes that are for sale in this program were initially backed by the FHA and foreclosed on. The houses in the Good Neighbor Next Door program are located in traditionally low-income areas with a high number of FHA-backed homes that have been foreclosed on.

National Homebuyers Fund

The National Homebuyers Fund (NHF) is a non-profit public assistance benefit program. This program was established in 2002, and they have helped over 34,500 people finance and buy a home by providing various down payment assistance options. They offer their support in the form of a grant, and this grant is supposed to cover down payments and closing costs up to 5% of the home's value. This grant is available to any home buyer, and there are no qualifications like being a first-time homebuyer to be eligible.

USDA Loan

Another loan option with no down payment is a loan through the United States Department of Agriculture (USDA). This option works by the USDA guaranteeing a mortgage that is issued through a local lender. Once they do this, it will lower the interest rates and make the down payment amount drop to zero. However, a downside to this program is that if you choose or can't put any money down, you will have to pay mortgage insurance along with your mortgage payment. They make it easy for every income level to maintain a mortgage, and they offer direct loans for low and very low-income families with down payment amounts as low as 1% of the home's purchase price. The USDA program will also give out grants and loans for home improvements and any renovations.

Veterans Affairs Loans

A Veterans Affairs (VA) Loan is a loan that is provided to Service Members, Veterans, and eligible military surviving spouses. The Department of Veteran's Affairs will guarantee a part of this loan, and that part will help you buy, build, renovate, or adapt your home to suit your needs. It will also help you keep your home if you fall behind on traditional mortgage payments. You will be able to get better loan terms and interest rates through you lender of choice because a part of the loan is guaranteed by the VA.

When Does it Make Sense to Rent Versus Buy a Home?

If you're not sure if you should rent or buy your home, there are several things you'll have to keep in mind before you begin this process.

  • Job Stability. If you work in a job where you don't have a stable paycheck, it might make more sense for you to rent your home. Things like real estate workers who survive on commission, business owners who rely on summer tourism, or self-employed people may have irregular income which makes it harder to obtain funding. You want to make sure you can make credit cards with 5 cash back on gas payments no matter what happens, and you may want to wait until you get a regular paycheck year round.
  • Length of Residence. If you're planning on buying a home, plan to live in it for at least five years. The last thing you want to do is purchase a home and then get a great job uk phone country code from usa two hours away and commute. You want to have time to invest in your home before you move. If you can't commit to five years, perhaps renting would be better until you're sure. If you buy a home using a 30-year mortgage most of the payments for the first decade apply toward interest rather than principal.
  • Purchase Price vs Rental Price. If you're paying around the same amount of rent that you would pay for a mortgage, you might want to look into buying. This way, you're securing an investment, and you have more flexibility to renovate your home as you wish.

What Parts of the Country Does it Make More Sense to Rent?

After the great recession real estate prices plunged, which meant that in the 100 largest metro areas in the country, it made more sense to purchase a house rather than rent one. At the bottom of the market, in many markets buying a home was over 35% cheaper than renting, inclusive of the costs that are associated with purchasing a home.

  • Midwest. The average cost of a house in the Midwest is cheaper than the cost of other regions in the country. It makes more sense to buy a home in this region for this reason. The market is also most solid here and left prone to large fluctuations. Be aware of associated trends which may change the cost dynamics.
  • Northeast. The Northeast sees a lot of the younger generation leaving for places like Texas and areas in the South, so it makes sense to buy in this area. There are many jobs available, and more are opening each year as the population leaves.
  • South. The South sees a rise in housing prices because of an influx of younger people. It makes more sense to rent in this area unless you live some distance away from the metro areas.
  • West. If you have a stable job and don't plan to move anytime soon, buying is a better option in the Western region. The housing prices here are more expensive, but you'll pay almost the same when you buy or when you're renting.

The mortgage down payment and closing cost calculator sections represent a "broad strokes" view. Each house, neighborhood, city and state has unique conditions. Here are some examples:

  • Illinois. As Illinois raises state income taxes & Chicago property taxes jump to make up for under-funded pensions, that may lower what other people are willing to pay for a house since owning it will also mean paying a higher property tax.
  • San Francisco Bay Area. While Prop 13 makes home ownership affordable for people who have owned their homes for many decades, the boom caused by technology companies has caused an affordability crisis which forced many other workers to live far away from work, making a real estate purchase less appealing.
  • Foreign Hot Money. During bubbles real estate prices increase faster than rents do, particularly if the local market is appealing to foreign hot money. Within a given country cities of similar size may have vastly different local dynamics. If you go back a decade Montreal was seen as a top market in Canada, but local real estate prices have not moved much in Montreal. Vancouver has seen a much sharper increase in real estate prices, as over 50,000 millionaires from China moved into the city. Toronto was also in a real estate bubble.

In spite of nearly a decade passing since the great recession, home ownership rates in the United States are at a 5 decade low. Rising healthcare costs, increased student loan debt & memories of the losses from the great recession have made individuals cautious while private equity investors like Blackstone purchased billions in property.

BiggerPockets publishes an annual report of the best & worst markets for residential real estate investing.

What are Some of the Hidden Costs of Buying a Home?

If you plan to buy a home, being organized is a major key to your success. There are several costs you have to take into account so you're sure you can afford everything once you buy your home.

  • Down Payment. Your down payment is a set percent of your potential home's listed price that you have to pay upfront. This percentage can fluctuate from 3.5% up to 20% or more based on your mortgage loan type, current market, and your credit score.
  • Home Appraisal. An appraisal is done by an agent from your lender's company to make sure the home's listed price matches the home's actual value. This price ranges anywhere from $300 to $500, and every home has to have one done.
  • Home Inspection. An inspection will have to be done by a licensed home inspector, and this is a mandatory step. The inspector will be looking for any potential problems that the potential home buyer could have missed on their walk through like a cracked foundation, structural issues, or leaks in the roof. This can cost anywhere from $300 to $500 per inspection.
  • Insurance and Loan Payments. You'll pay loan payments and insurance each month on your new home. The Homeowners and Renters Insurance Institute estimated that this amount could be around $1,034 for insurance alone per year.
  • Maintenance. As a homeowner, you will be responsible for all of the maintenance, renovations, and general upkeep around your house once you purchase it. Depending on the quality of the home when you move in, this could be expensive.
  • Property Taxes. Once you purchase the house, you could end up being responsible for up to six months of property taxes before moving in, but this amount will depend on your location and the time of year the purchase is completed in.

How Long Does it Take to Buy or Sell a Home and What are the Costs?

If you're trying to buy or sell a home; this process can take anywhere mortgage down payment and closing cost calculator a few months to a few years depending on the market, your listing price, and how much you're willing to negotiate.

Buying a Home

If you're starting to make your closing contract, it can take one to two months from start to finish. After this, there can be an additional one to two months for paperwork depending on your loan type. Also, if you start your contract in the middle of a month, your agent may wait until the first of the next month to finish the process. You will also have to include how long it takes you to find a home that you like and that suits your needs. So, this process could take anywhere from two months to a year.

Selling a Home

If you're selling your home, research has shown that it can take between 36 to 70 days after the home is listed to sell. To get a more accurate estimate, you should contact a licensed real estate agent that knows the market where you home is located. Your home's condition will also play a big role on blackberry key2 le t mobile long it sits on the market before it sells. To make your home sell quicker, stage it before you have potential buyers come through and take steps to fix up any minor issues.

Costs

Home sellers have a number of costs they have to manage in order to sell their home.

  • Closing Costs. You may be asked to pay closing costs on your home. These could include HOA fees, attorney fees, and an escrow fee to name a few.
  • Commisson Fee. The real estate agent will get a commission fee, and this can be as high as 5% or 6% of your home's selling price.
  • Inspection. There are also the home and inspection costs to add in. This could add up to extra hundreds of dollars.
  • Staging. You want to give buyers a realistic expectation about what the home will look like with furniture. You might have to pay a professional stager to bring furniture in and arrange it.
  • Utilities. You'll want to pay your utilities on your home until it sells. This can run you a few hundred additional dollars as well.
  • Rent or Mortgage. Compass community credit union eureka sellers need to live somewhere while their home is up for sale. This can mean temporarily paying rent elsewhere, staying in a hotel, or paying 2 separate mortgage payments at the same time.

How Does Real Estate Gains Compare Against Long-Term Inflation or Stock Options?

Over the longterm real estate price tend to fluctuate in-line with broader inflation. Periodically real estate prices may overshoot or undershoot, but given a long enough timeframe they typically track broader inflation.Real estate investing for an individual homeowner is more about stability rather than achieving strong returns.

If you're trying to decide to invest in real estate versus stocks to achieve investment returns, stocks are usually the better choice. They are much more liquid, and they can be used in more flexible ways than traditional real estate. Also, you will be able to sell your stocks quickly in you need to without paying a lot in extra fees. Stocks also tend to have an upward trend, even if they drop sharply in bear markets. This general trend makes them a better option for those who are willing to let their money compound for years before buying a home. Companies like Vanguard make it easy to invest in a diversified portfolio cheaply to further reduce risk.

A homeowner with a 20% downpayment has a 5:1 leverage in buying the home & if things head south they have no way to exit a portion of their investment without exiting the entire investment. If a person is laid off they may not be able to refinance their loan or get a home equity loan. And if the real estate market softens banks may be less willing to lend against the property.

"Here is a harsh truth about homeownership: Over the long haul, it’s hard for homes to compete with the stock market in real appreciation. That’s because companies whose walmart money card account login are traded on a stock exchange retain a good share of their earnings to plow back into the business. The business should grow and its real stock price should also grow through time — unless the company makes poor decisions, as some certainly do." - Robert Shiller
 Residential Real EstateREITS&P 500BondsInflation
Annualized Rate5.8%14.1%10.31%6.66%3.98%
Inflation-adjusted Rate1.82%10.12%6.33%2.68% 
Liquidityvery lowmoderatevery highhigh 
Personal Leveragehighlowlowlow 
Transaction Costhighlowlowlow 
Ownership Costhighlowlowlow 
Volatilitymoderatemoderatehighlow 

Table sources

  • Residential price appreciation. 1963-2010, average new house price, US Census
  • REIT. 1975-2014, MarketWatch
  • S&P 500. returns with dividends reinvested from mortgage down payment and closing cost calculator
  • Bonds.FRED data geometric average return of U.S. Treasury notes from 1967-2016
  • Inflation. 1963-2016 stats from the BLS using their CPI calculator

 

 

Источник: http://www.collegescholarships.org/calculators/downpayment-savings.php
MIP box on the closing cost-page.

Pennsylvania deed transfer tax

The deed transfer tax is typically split between buyer and seller. Generally, chime bank check balance number buyer pays 1% of the sales price and the seller pays 1%. There are exceptions. Use the drop down box to see if the municipality is listed. If so, choose the municipality. Pennsylvania does not impose a mortgage, recordation, or excise tax on home sales. Read more about the PA deed transfer tax

Seller paid closing costs (aka seller assist)

All of the popular loan programs allow the home seller to pay a percentage of the buyer's closing costs. The maximum percentage varies by program. The seller paid closing cost percentage is built into this calculator. Choose "maximum" for the "maximum" seller paid closing cost percentage. Read more about the seller paid closing costs

Debt to income ratio calculation

The amount you can borrow is largely dependent on your "debt to income" percentage. The ideal mortgage payment is 29% of your monthly GROSS income. Lenders also consider your monthly debt in the equation (i.e. car payment, school loan, credit card, etc.). The "ideal" debt to income debt ratio is 36%. The debt ratio of 41% includes the anticipated mortgage payment. The debt to income ratios vary between loan programs. Enter your monthly (gross) income and monthly debt (excluding the mortgage payment) in the appropriate boxes and the calculator will estimate the debt ratios. Read more about debt to income ratio

Please send me an email if you discover a calculation error or care to make a comment.

Источник: http://www.anytimeestimate.com/PA_HOME_BUYER/pa-home-buyer-purchase-estimate.htm

One common mistake is overlooking the closing costs that need to be paid at the end of the buying process. While budgeting for your home purchase, you’ll want to have an accurate picture of the additional costs you’ll need to pay. Some of these costs may include land transfer mortgage down payment and closing cost calculator, title insurance, property valuation fees, home inspection fees, and legal fees. Visit the pages below to learn more about the costs that’ll apply to your purchase.

  • Closing Costs Overview

    Closing costs, ranging from 1.5 to 4% of selling price, are the legal and administrative costs you will need to pay when your house closes.

    continue reading
  • Real Estate Lawyer

    Whether you’re buying, selling or refinancing your home, one of the most important people you’ll work with is your real estate lawyer or notary.

    continue reading
  • Interest Adjustment

    An interest adjustment is a closing cost that only some homebuyers have to pay, which makes it a little confusing for those who find.

    continue reading
  • Statement of Adjustments

    Whether you’re buying, selling or refinancing your home, you’ll need a real estate lawyer or notary to help you complete your paperwork and facilitate the financial transaction.

    continue reading
  • GST/HST

    If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price.

    continue reading
  • PST On CMHC Insurance

    If you don’t save enough to make a down payment of 20% or more on a home, you will need to purchase mortgage default insurance. More commonly known as CMHC insurance.

    continue reading
  • Other Buyer’s Fees

    On top of your standard closing costs, there are a few other fees you may have to pay when you purchase your home or condo.

    continue reading
  • Home Insurance

    It is easy to get overwhelmed during the home buying process. On top of it being the largest transaction you’ve ever made, things move quickly.

    continue reading
  • Property Taxes

    One of the carrying costs that come with homeownership is your property tax. Property taxes are charged by the municipality you live in, and.

    continue reading

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By submitting your email address, you acknowledge and agree to Ratehub.ca‘s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.

Источник: https://www.ratehub.ca/closing-costs
mortgage down payment and closing cost calculator

watch the video

Average Closing Cost For 1st Time Home Buyers-EASY CALCULATION

Mortgage down payment and closing cost calculator -

MIP box on the closing cost-page.

Pennsylvania deed transfer tax

The deed transfer tax is typically split between buyer and seller. Generally, the buyer pays 1% of the sales price and the seller pays 1%. There are exceptions. Use the drop down box to see if the municipality is listed. If so, choose the municipality. Pennsylvania does not impose a mortgage, recordation, or excise tax on home sales. Read more about the PA deed transfer tax

Seller paid closing costs (aka seller assist)

All of the popular loan programs allow the home seller to pay a percentage of the buyer's closing costs. The maximum percentage varies by program. The seller paid closing cost percentage is built into this calculator. Choose "maximum" for the "maximum" seller paid closing cost percentage. Read more about the seller paid closing costs

Debt to income ratio calculation

The amount you can borrow is largely dependent on your "debt to income" percentage. The ideal mortgage payment is 29% of your monthly GROSS income. Lenders also consider your monthly debt in the equation (i.e. car payment, school loan, credit card, etc.). The "ideal" debt to income debt ratio is 36%. The debt ratio of 41% includes the anticipated mortgage payment. The debt to income ratios vary between loan programs. Enter your monthly (gross) income and monthly debt (excluding the mortgage payment) in the appropriate boxes and the calculator will estimate the debt ratios. Read more about debt to income ratio

Please send me an email if you discover a calculation error or care to make a comment.

Источник: http://www.anytimeestimate.com/PA_HOME_BUYER/pa-home-buyer-purchase-estimate.htm

One common mistake is overlooking the closing costs that need to be paid at the end of the buying process. While budgeting for your home purchase, you’ll want to have an accurate picture of the additional costs you’ll need to pay. Some of these costs may include land transfer taxes, title insurance, property valuation fees, home inspection fees, and legal fees. Visit the pages below to learn more about the costs that’ll apply to your purchase.

  • Closing Costs Overview

    Closing costs, ranging from 1.5 to 4% of selling price, are the legal and administrative costs you will need to pay when your house closes....

    continue reading
  • Real Estate Lawyer

    Whether you’re buying, selling or refinancing your home, one of the most important people you’ll work with is your real estate lawyer or notary...

    continue reading
  • Interest Adjustment

    An interest adjustment is a closing cost that only some homebuyers have to pay, which makes it a little confusing for those who find...

    continue reading
  • Statement of Adjustments

    Whether you’re buying, selling or refinancing your home, you’ll need a real estate lawyer or notary to help you complete your paperwork and facilitate the financial transaction...

    continue reading
  • GST/HST

    If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price...

    continue reading
  • PST On CMHC Insurance

    If you don’t save enough to make a down payment of 20% or more on a home, you will need to purchase mortgage default insurance. More commonly known as CMHC insurance...

    continue reading
  • Other Buyer’s Fees

    On top of your standard closing costs, there are a few other fees you may have to pay when you purchase your home or condo...

    continue reading
  • Home Insurance

    It is easy to get overwhelmed during the home buying process. On top of it being the largest transaction you’ve ever made, things move quickly...

    continue reading
  • Property Taxes

    One of the carrying costs that come with homeownership is your property tax. Property taxes are charged by the municipality you live in, and...

    continue reading

The knowledge bank

A wealth of wealth knowledge delivered right to your inbox

By submitting your email address, you acknowledge and agree to Ratehub.ca‘s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.

Источник: https://www.ratehub.ca/closing-costs
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Источник: https://www.myfico.com/loan-center/mortgage/calculators/closing-costs/default.aspx

Closing Cost Calculator for Buyers

US Flag
CASAPLORERTrusted & Transparent
Result

Total Amount Required at Closing

$91,478

Closing Cost Calculation

Total Closing Costs

$11,478

Fixed Closing Cost

Variable Closing Cost

$9,425

Total Variable Cost

Our closing costs calculator determines your total closing costs when you purchase a home. Closing costs will include all the expenses such as lender fees & third-party fees which will help you estimate the total funds that will be required at closing. Closing costs range from 2% to 5% of the loan amount, however, they can vary significantly as there are several expenses that you can shop around for and get a better deal, along with the fixed costs which do not change.

What are closing costs?

Closing costs are the total fees that are paid for the services required when you purchase a new home or refinance your existing home. Closing costs are usually paid by the buyer of the home, but the seller pays some closing costs in the form of real-estate commission.

Closing costs will include expenses such as property-related charges, lender fees, insurance costs and any other costs that are incurred to finalize the mortgage. Some of these expenses are fixed such that they are the same for anyone buying a similar valued home, for example, property taxes. On the other hand, some of the expenses you can shop around for and get a lower fee, for example, home inspection fee or lawyer costs.

When you apply for the mortgage, your lender is required to provide you the Loan Estimate document which will include an outline of the closing costs. Once the mortgage is approved and the deal has gone through, a few days before the settlement date, the lender will give you the Closing Disclosure document which will show all the closing costs that will have to be paid.

How much are closing costs?

Closing costs are different for all home buyers as they are dependent on the price of the home, location, and other fees. All these factors make it very difficult to accurately determine closing costs, however, the average total closing costs for most buyers is 2% to 5% of the loan amount. For example, on a $400,000 loan, you can expect closing costs to be anywhere from $8,000 to $20,000. This range is very large and may not be useful. Therefore, our closing cost calculator can provide a much closer estimate as our calculator determines the individual costs based on your specific situation.

The best way to pay closing costs is upfront as most of the costs are a one-time expense and are not recurring through the mortgage. If the lender permits, you can also choose to pay the closing costs by financing it into the mortgage amount, however, this is not advisable as you will be paying interest on these costs. Several states have first-time home buyer programs that can assist you with closing costs and meet minimum down payment requirements.

Map of Closing Costs Across All 50 States

US states ranked by average closing costs (including taxes) as reported by ClosingCorp in 2019.

States With the Highest and Lowest Closing Costs

Which states have the highest closing costs and the lowest closing costs in the United States? According to ClosingCorp, the District of Columbia (D.C.) has the highest average total closing costs with taxes in the U.S. at $25,800. This means that a homebuyer looking to purchase a home in Washington D.C. will need to have $25,800 to cover closing costs, and that doesn't even include the down payment! That makes up 4% of the average sales price, which is below the 4.88% in Pennsylvania.

States With the Highest Average Closing Costs for Homebuyers

StateAverage Closing Costs with Taxes% of Average Sales Price
District of Columbia (D.C.)$25,8004.00%
Delaware$13,2734.72%
New York$12,8473.05%
Washington$12,4062.86%
Maryland$11,8763.65%

When looking at the state with the lowest buyer closing costs, Indiana is the cheapest at just $1,909, or 0.99% of the average home sales price. For the lowest closing costs as a percentage of the sales price, the cheapest states are Wyoming and Colorado, which are tied at 0.86%.

States With the Lowest Average Closing Costs for Homebuyers

StateAverage Closing Costs with Taxes% of Average Sales Price
Indiana$1,9090.99%
Montana$2,0631.02%
South Dakota$2,1591.19%
Iowa$2,1941.27%
Kentucky$2,2761.32%

Who pays closing costs?

Closing costs are in most cases paid by the buyer of the house. There are situations where the seller covers some of the closing costs if it is a buyer’s market and the negotiations lead to closing costs being divided. If it is a buyer’s market where there are excess sellers and fewer buyers or if the seller is in a rush to sell, closing costs can be used as a bargaining chip by the seller in order to make the sale go through. In these situations, the seller might agree to pay some of the closing costs, known as seller-paid closing costs.

How to calculate closing costs?

Closing costs calculations are simple. You first estimate the amount for various costs required during closing and you sum them up to determine your total closing costs. If you have the actual values, you can then use those to determine the exact amount that will be required.

Example

For example, how much are closing costs on a house with a price of $400,000 with an $80,000 down payment in New York?

Negotiable Fees: Services You Can Shop For

  1. Home Inspection Fee - $450
  2. Application Fee - $350
  3. Credit Report Fee - $25
  4. Lawyer Fee - $1000
  5. Loan Origination Fee – $4,000 (0.1% of Loan Value)
  6. Discount Points – $0
  7. Title Insurance - $2,000 (0.5% of Home Price)
  8. Homeowners Insurance – $1,600
  9. Title Search Fee - $600
  10. Upfront Mortgage Insurance Premium (MIP) - $0
  11. FHA, VA & USDA Loan Fees - $0

Total Negotiable Costs = $8,425

Fixed Fees: Services Where the Cost Does Not Change

  1. Appraisal Fee - $350
  2. Prepaid Interest – $448 (0.14% of Loan Value)
  3. Property Tax – $1,127 (1.69% tax rate for New York)
  4. HOA Fees – $400

Total Fixed Costs = $3,925

Total Closing Costs = $12,350

Closing Costs as a Percentage of Loan Value = 3.85% ($12,350/$320,000 * 100)

Total Cash Amount Required at Closing = $92,350 ($12,350 Total Closing Costs + $80,000 Down Payment)

What is included in closing costs?

Closing costs can be divided into four main cost segments with each having its own subset of fees. Some of the fees are fixed, such that their cost does not change from situation to situation. However, a majority of the fees are variable, which means you can shop around different providers to get the lowest cost offer.

Closing Costs Summary Table

Specific Fee or ExpenseFixed or Variable
Property-related FeesAppraisal FeeFixed
Home Inspection FeeShop
Title SearchShop
Title InsuranceShop
Mortgage-related FeesCredit Report FeeShop
Application FeeShop
Loan Origination FeeShop
Legal FeeShop
Discount PointsShop
Prepaid InterestFixed
Mortgage Insurance FeesUpfront Mortgage InsuranceShop
FHA, VA & USDA Loan FeesShop
Annual FeesProperty TaxesFixed
Homeowners InsuranceShop
HOA FeesFixed

Property Related Fees

  1. Appraisal Fee – An appraisal is required by the lender to determine the value of the property and the amount that needs to be borrowed. The appraisal fee is around $350.
  2. Home Inspection Fee – This fee is used to determine if the property meets safety and quality standards. Home inspection fees can range from $350 - $600, our calculator assumes $450.
  3. Title Search – If the property being purchased is not new, then a title search is required to ensure there are no issues of ownership or liens. Title search fees can range from $400 - $800, our calculator assumes $600.
  4. Title Insurance – Lenders will require you to get title insurance to ensure that if a situation arises where your ownership is disputed, they can recoup their loan. Title insurance can range from 0.5% - 1% of the home price, our calculator assumes 0.5%.

Mortgage-Related Fees

  1. Credit Report Fee – The lender uses this fee to obtain your credit report. It costs about $25.
  2. Application Fee – Processing the application has a fee of $350.
  3. Loan Origination Fee – This fee is one of the largest, and it is also known as the underwriting or processing fee. It involves preparing and evaluating your mortgage such as notary fee, documentation, checking your financial records, verifying information, and the service provided during the entire process. The fee can change depending on the lender, and hence, it is very important to shop around and find the lowest-cost lender. The fee can range from 0.5% - 1% of the loan value, our calculator assumes 0.75%.
  4. Legal Fee – A lawyer is required at closing to verify all the documents, with legal fees charged hourly. Fees can range from $600 - $1300, our calculator assumes, $1,000.
  5. Discount Points – Points can be bought which can in turn help reduce your mortgage rate. One point can be bought for 1% of the loan amount and it lowers your mortgage rate by 0.25%. For example, if your loan amount is $300,000 at a mortgage rate of 3.25%, you can buy 1 point for $3,000 ($300,000 * 1%) and reduce your mortgage rate to 3% (3.25% - 0.25%).

    Use our mortgage points calculator to see how points will affect your mortgage

  6. Prepaid-Interest – Lenders will require you to pay any interest that is charged from the date of settlement to the first monthly mortgage payment. Prepaid interest can vary based on the number of days interest has to be paid, our calculator assumes 0.14% of the loan amount.

Mortgage Insurance Fee

  1. Upfront Mortgage Insurance – If the down payment is less than 20% of the home value, then the lender will require you to get private mortgage insurance (PMI). PMI can be financed into the mortgage, or it can be paid upfront.
  2. FHA, VA & USDA Fees – Government-backed loans have initial costs that have to be paid. FHA loans require FHA Mortgage Insurance Premium (MIP) which is 1.75% of the loan amount. VA loans have the VA funding fee and USDA loans have guarantee fees.

Annual Fees

  1. Property Taxes – You will be required to pay two months of property taxes. The property rate will be dependent on your location.
  2. Homeowners Insurance – Lenders will require you to get insurance against potential damages. In most cases, 12 months of insurance is paid upfront, our calculator assumes a cost of 0.4% of the home price.
  3. Homeowners Association(HOA) – Some condominium associations have fees for maintenance and improving the public condominium property and amenities.

How do I reduce my closing costs?

Closing costs are an important cost in the process of buying a home and getting a mortgage. There are a few costs that are fixed, but a majority of them are variable where shopping around can get you a better deal. One of the largest closing costs is lender fees, especially origination charges, which can be close to 1% of the loan amount. This is where you can really try to save money. By shopping around for different lenders and with proper negotiations, these fees can be brought down significantly. There are a host of other variable fees where proper research and negotiation can save you a lot of money.

No-Closing-Cost Mortgages

Did you know that you can get a mortgage loan or refinance your existing mortgage without having to pay any closing costs upfront? Some banks and lenders offer no-closing-cost mortgages and no-closing-cost refinances. With this special type of loan, the lender bundles the closing costs of your mortgage directly into your principal balance. This means that you can pay the closing costs over time instead of having to pay them all upfront at closing. However, no-closing-cost mortgages typically have a higher mortgage interest rate compared to conventional mortgages. This means that you will be paying more interest over time. However, no-closing-cost mortgages are still a suitable alternative for borrowers that might not have enough savings to cover closing costs today, and can be a lower-interest cost option compared to alternatives such as getting a personal loan to pay for buyer closing costs.

Источник: https://casaplorer.com/buyer-closing-cost-calculator

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Pennsylvania Closing Cost and Mortgage Calculator

This estimate assumes an owner occupied residence or condominium.FIXED and ARM refers to loans underwritten to Fannie Mae guidelines (i.e. 5%, 10%, 15%, etc.). These loans are commonly called "conventional" loans. You can override the mortgage insurance premium with the PMI

Mortgage down payment and closing cost calculator -

001-cnet-finance-mortgage-moving-boxes

It's easy for homebuyers, especially first-timers, to focus on the sticker price of a home or the down payment amount, without factoring in "closing costs." A vague term that covers a collection of fees, closing costs can be tricky to nail down and yet may add up to a significant expense -- usually ranging from 2% to 5% of the amount you're borrowing.

As the name infers, closing costs are tallied up just as you're finalizing your mortgage and about to take over the property title. Most are paid by the buyer, but the seller may be on the hook for a few too. 

Even if you're taking advantage of historically low interest rates, closing costs can be significant and are worth including in your home-buying budget. Here's what you need to know to avoid any last-minute surprises.

What are mortgage closing costs? 

Closing costs refer to the upfront fees charged to secure a loan and transfer the ownership of a property, according to the Consumer Financial Protection Bureau. Sometimes they're referred to as settlement costs.

They cover a lot of behind-the-scenes transactions and paper pushing. The realtors, bank, title company, appraisers and document-drafting lawyers all need to be paid. Some common closing costs include title insurance, government taxes, appraisal fees, tax service provider fees and prepaid expenses, according to a list published by the Consumer Financial Protection Bureau.

The buyer usually ends up paying most of these costs -- but standard arrangements vary among states and from deal to deal. Sometimes, a buyer can negotiate to have the seller pick up some of the closing costs in exchange for a higher overall sale price. Buyers may also have a lender chip in on closing costs. But, again, that could result in a higher loan amount or interest rate.

What do closing costs pay for? 

Your closing costs will depend on your particular transaction and can be impacted by interest rates, local insurance fees, tax rates, local appraisal fees and other factors. But here's a general breakdown of some of the common expenses covered by closing costs: 

Title insurance: This protects lenders from financial losses stemming from problems related to a property title, such as liens or ownership conflicts.    

Government taxes: These could include the property tax on the home, local government fees -- such as one for recording the sale of the property -- and a tax for transferring the title from the seller to the buyer. 

Appraisal fees: These are charged by an appraiser for coming to the property and assessing the home's value to determine an appropriate loan amount. 

Tax service provider fees: These help pay for third parties to keep track of property tax payments and other tax monitoring duties. 

Prepaid expenses: These are items like homeowners insurance, property taxes and interest until the first payment is due. 

How much are closing costs? 

Most lenders and industry watchers will tell you that your closing costs, on average, will cost you somewhere between 2% and 5% of the amount borrowed. 

The national average closing costs for a single-family property were $5,749 including taxes and $3,339 excluding taxes in 2019, according toClosingCorp, which analyzes closing cost data for the industry. 

For a more specific estimate, we used a closing cost calculator from banking service BBVA to show what these fees might look like for a $250,000 loan. After entering a 20% down payment, 30 years for the term and a 4% interest rate, the total amount of closing costs was calculated at $7,042.

What are closing documents? 

One of the key documents you'll get before the final signing is the closing disclosure, which outlines the details about your loan, including your closing costs. The lender should provide you with that document three business days before the scheduled loan closing.

It's very important to review this document to make sure all the information is correct and that the terms of the loan are accurate and clear. This closing disclosure explainer might help you as you review the document. Among other advice, it mentions making sure that closing costs match the most recent loan estimate. 

Other important closing documents include:

Promissory note: a legal document stating that you will repay your mortgage.

Mortgage, security instrument or deed of trust: gives the lender the right to take your property by foreclosure if you do not pay your mortgage according to the terms you've accepted.

Initial escrow disclosure statement: details the charges that you pay into an escrow each month.        

Right to cancel form: outlines the rules for when and how you can cancel your loan, usually used as part of the refinancing process.

If you have questions about any of these, ask your lender, broker, or lawyer for help. 

Are closing costs tax deductible?

The IRS says the only closing costs you can deduct are the points you pay to reduce your home mortgage interest rate and real estate taxes you're required to pay upfront. If you itemize, you can deduct these costs during the year you buy your home.

The IRS also has a list of closing costs you can add to the basis of your home. They include things like legal and recording fees and surveys. 

Tax rules are always changing, which is why we advise talking to a tax professional about what you can and can't deduct from the closing of your house. 

Tips and tricks for saving on closing costs 

Saving all your cash for the down payment is a home buying mistake to avoid. Closing costs are additional thousands of dollars on top of the down payment you might not have been expecting. 

But there are ways to save.

"In the seller market, we have offered to reimburse borrowers for their appraisal cost, have a network of title companies that will reduce title fees and provide grant programs for qualifying borrowers to cover down payment and some closing costs," says Steve Twyman, branch manager with Mortgage Experts "There are options for lender credits as well."

Of course, this is where having a strong credit rating will pay off, Twyman adds.

Orlando Miner, principal at Miner Capital Funding, LLC, recommends seeing if you can get the seller to pay for closing costs. "This is a common occurrence so don't feel shy about asking for this. Remember the worst that can happen is they can say 'no.'" 

But again, this will be harder to negotiate when it's a seller's market, as it is right now in many regions of the US.

Miner adds that timing is key. For example, closing at the end of the month will save you on prepaid interest. "The rule is you have to pay prepaid interest from the date you close to the end of that month. So the closer you close to the end of the month the less money you pay."

You might also want to play around with closing cost calculators. These can show you at least roughly how much you may be paying for closing costs as one lump sum. 

Источник: https://www.cnet.com/personal-finance/mortgages/mortgage-closing-costs-what-they-are-and-how-much-youll-pay/

Pennsylvania Closing Cost and Mortgage Calculator

This estimate assumes an owner occupied residence or condominium.FIXED and ARM refers to loans underwritten to Fannie Mae guidelines (i.e. 5%, 10%, 15%, etc.). These loans are commonly called "conventional" loans. You can override the mortgage insurance premium with the PMI

Down Payment Calculator

The three calculations below offer different ways to help calculate an estimated down payment.

Use the Upfront Cash Available

If the amount of upfront cash available and down payment percentages are known, use the calculator below to calculate an estimate for an affordable home price.

 

Home Price: $217,391


Home Price$217,391
Down Payment$43,478
Closing Costs$6,522
Loan Amount$173,913
Monthly Payment$750


Use the Home Price

If the home price and down payment percentages are known, use the calculator below to calculate an estimate for an amount needed in cash available for upfront costs.

 

Cash Needed: $46,000


Down Payment$40,000
Closing Costs$6,000
Down Payment + Closing Costs$46,000
Loan Amount$160,000
Monthly Payment$690


Use the Home Price and Upfront Cash Available

If the home price and amount of upfront cash available are known, use the calculator below to calculate an estimate for a down payment percentage.

 

Down Payment: 22.0%


Down Payment$44,000
Down Payment Percentage22.0%
Closing Costs$6,000
Loan Amount$156,000
Monthly Payment$673


What is a Down Payment?

A down payment is the upfront portion of a payment that is often required to finalize the purchase of items that are typically more expensive, such as a home or a car. When purchasing a home, after a down payment is paid by a home-buyer, any remaining balance will be amortized as a mortgage loan that must be fulfilled by the buyer. In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.

Closing Costs

It is important to remember that a down payment only makes up one upfront payment during a home purchase, even though it is often the most substantial. There are also many other costs that may be involved, such as upfront points of the loan, insurance, lender's title insurance, inspection fee, appraisal fee, and a survey fee. A very rough estimate for the amount needed to cover closing costs is 3% of the purchase price, which is set as the default for the calculator.

Different Loans, Different Down Payment Requirements

In the U.S., most conventional loans adhere to guidelines and requirements set by Freddie Mac and Fannie Mae, which are two government-sponsored corporations that purchase loans from lenders. Conventional loans normally require a down payment of 20%, but some lenders may go lower, such as 10%, 5%, or 3% at the very least. If the down payment is lower than 20%, borrowers will be asked to purchase Private Mortgage Insurance (PMI) to protect the mortgage lenders. The PMI is normally paid as a monthly fee added to the mortgage until the balance of the loan falls below 80 or 78% of the home purchase price.

To help low-income buyers in the U.S., the Department of Housing and Urban Development (HUD) requires all Federal Housing Administration (FHA) loans to provide insurance to primary residence home-buyers so that they can purchase a home with a down payment as low as 3.5% and for terms as long as 30 years. However, home-buyers must pay an upfront mortgage insurance premium at closing that is worth 1.75% of the loan amount, on top of the down payment. In addition, monthly mortgage insurance payments last for the life of the loan unless refinanced to a conventional loan. For more information about or to do calculations involving FHA loans, please visit the FHA Loan Calculator.

Also, in the U.S., the Department of Veterans Affairs (VA) has the ability to subsidize VA loans, which do not require a down payment. Only two other entities, the USDA and Navy Federal, allow the purchase of a home without a down payment. For more information about or to do calculations involving VA mortgages, please visit the VA Mortgage Calculator.

Large vs. Small Down Payment

Paying a larger down payment of 20% or more, if possible, usually lead to qualification for lower rates. Therefore a larger down payment will generally result in the lower amount paid on interest for borrowed money. For conventional loans, paying at least a 20% down payment when purchasing a home removes the need for Private Mortgage Insurance (PMI) payments, which are sizable monthly fees that add up over time.

One of the risks associated with making a larger down payment is the possibility of a recession. In the case of a recession, the home value will likely drop, and with it, the relative return on investment of the larger down payment.

Making a smaller down payment also has its benefits, the most obvious being a smaller amount due at closing. Generally, there are a lot of different opportunity costs involved with the funds being used for a down payment; the funds used to make a down payment can't be used to make home improvements to raise the value of the home, pay off high-interest debt, save for retirement, save for an emergency fund, or invest for a chance at a higher return.

Down payment size is also important to lenders; generally, lenders prefer larger down payments. This is because big down payments lower risk by protecting them against the various factors that might reduce the value of the purchased home. In addition, borrowers risk losing their down payment if they can't make payments on a home and end up in foreclosure. As a result, down payments act as an incentive for borrowers to make their mortgage payments, which reduces the risk of default.

Where to Get Down Payment Funds

Savings—Most home-buyers save up for their down payments by setting aside savings until they reach their desired target, whether it's 20% or 3.5%. Having the savings in an interest-bearing account such as a savings account or in Certificates of Deposit (CDs) can provide the opportunity to earn some interest. Although placing down payment savings in higher risk investments such as stocks or bonds can be more profitable, it is also riskier. For more information about or to do calculations involving savings, please visit the Savings Calculator. For more information about or to do calculations involving CDs, please visit the CD Calculator.

Piggyback Loan—In situations where the home-buyer doesn't have sufficient funds to make the required down payment for a home purchase, they can try to split their mortgage into two loans. A piggyback mortgage is when two separate loans are taken out for the same home. Generally, the first mortgage is set at 80% of the home's value and the second loan is for 10%. The remaining 10% comes from the home-buyer's savings as a down payment. This is also called an 80-10-10 loan. Home-buyers may use piggyback mortgages to avoid PMI or jumbo financing.

Down Payment Assistance Programs—Local county or city governments, local housing authorities, and charitable foundations sometimes provide grants to first-time home-buyers. State-wide programs can be found on the HUD website. Down payment assistance is usually only reserved for need-based applicants purchasing a primary residence. Grants can come in the form of money applied to a down payment or an interest-free loan meant to supplement a main mortgage. Applicants usually still need to have decent credit and documented income. Grants may need to be repaid if the home is sold.

Gift Funds—FHA loans allow for the down payment to be a gift from a friend or family member, and the entire down payment can be considered a gift as long as there is a gift letter stating that it is a gift that does not require repayment.

IRA—The principal contributed to a Roth IRA (individual retirement account) can be withdrawn without penalty or tax. In contrast, contributions from a traditional IRA will be subject to regular income tax as well as a 10% penalty if the contributions are withdrawn prior to the age of 59 ½. However, there is an exclusion that allows a person to withdraw $10,000 from both types of IRAs (including earnings for a Roth IRA) without penalty or tax for the purchase, repair, or remodeling of a first home. The funds can also legally be used to purchase a home for a spouse, parents, children, or grandchildren. The only caveat is that the home-buyer is only given 120 days to spend the withdrawn funds, or else they are liable for paying the penalty. Spouses can each individually withdraw $10,000 from their respective IRAs in order to pay $20,000 towards their down payment. The $10,000 limit is a lifetime limit.

401(k)—It is possible to take out a loan for either up to $50,000, or half the value of the 401(k) account, whichever is less. This loan will require repayment with interest, but there will be no tax or penalties on the loan amount. Interest and principal will be paid back to the 401(k) owner. However, taking out a loan, especially a large one, can affect qualification for or ability to repay a mortgage. Most plans only give five years to repay the loan, and borrowing a large amount can result in substantial payback pressure.

Источник: https://www.calculator.net/down-payment-calculator.html

Closing Cost Calculator for Buyers

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CASAPLORERTrusted & Transparent
Result

Total Amount Required at Closing

$91,478

Closing Cost Calculation

Total Closing Costs

$11,478

Fixed Closing Cost

Variable Closing Cost

$9,425

Total Variable Cost

Our closing costs calculator determines your total closing costs when you purchase a home. Closing costs will include all the expenses such as lender fees & third-party fees which will help you estimate the total funds that will be required at closing. Closing costs range from 2% to 5% of the loan amount, however, they can vary significantly as there are several expenses that you can shop around for and get a better deal, along with the fixed costs which do not change.

What are closing costs?

Closing costs are the total fees that are paid for the services required when you purchase a new home or refinance your existing home. Closing costs are usually paid by the buyer of the home, but the seller pays some closing costs in the form of real-estate commission.

Closing costs will include expenses such as property-related charges, lender fees, insurance costs and any other costs that are incurred to finalize the mortgage. Some of these expenses are fixed such that they are the same for anyone buying a similar valued home, for example, property taxes. On the other hand, some of the expenses you can shop around for and get a lower fee, for example, home inspection fee or lawyer costs.

When you apply for the mortgage, your lender is required to provide you the Loan Estimate document which will include an outline of the closing costs. Once the mortgage is approved and the deal has gone through, a few days before the settlement date, the lender will give you the Closing Disclosure document which will show all the closing costs that will have to be paid.

How much are closing costs?

Closing costs are different for all home buyers as they are dependent on the price of the home, location, and other fees. All these factors make it very difficult to accurately determine closing costs, however, the average total closing costs for most buyers is 2% to 5% of the loan amount. For example, on a $400,000 loan, you can expect closing costs to be anywhere from $8,000 to $20,000. This range is very large and may not be useful. Therefore, our closing cost calculator can provide a much closer estimate as our calculator determines the individual costs based on your specific situation.

The best way to pay closing costs is upfront as most of the costs are a one-time expense and are not recurring through the mortgage. If the lender permits, you can also choose to pay the closing costs by financing it into the mortgage amount, however, this is not advisable as you will be paying interest on these costs. Several states have first-time home buyer programs that can assist you with closing costs and meet minimum down payment requirements.

Map of Closing Costs Across All 50 States

US states ranked by average closing costs (including taxes) as reported by ClosingCorp in 2019.

States With the Highest and Lowest Closing Costs

Which states have the highest closing costs and the lowest closing costs in the United States? According to ClosingCorp, the District of Columbia (D.C.) has the highest average total closing costs with taxes in the U.S. at $25,800. This means that a homebuyer looking to purchase a home in Washington D.C. will need to have $25,800 to cover closing costs, and that doesn't even include the down payment! That makes up 4% of the average sales price, which is below the 4.88% in Pennsylvania.

States With the Highest Average Closing Costs for Homebuyers

StateAverage Closing Costs with Taxes% of Average Sales Price
District of Columbia (D.C.)$25,8004.00%
Delaware$13,2734.72%
New York$12,8473.05%
Washington$12,4062.86%
Maryland$11,8763.65%

When looking at the state with the lowest buyer closing costs, Indiana is the cheapest at just $1,909, or 0.99% of the average home sales price. For the lowest closing costs as a percentage of the sales price, the cheapest states are Wyoming and Colorado, which are tied at 0.86%.

States With the Lowest Average Closing Costs for Homebuyers

StateAverage Closing Costs with Taxes% of Average Sales Price
Indiana$1,9090.99%
Montana$2,0631.02%
South Dakota$2,1591.19%
Iowa$2,1941.27%
Kentucky$2,2761.32%

Who pays closing costs?

Closing costs are in most cases paid by the buyer of the house. There are situations where the seller covers some of the closing costs if it is a buyer’s market and the negotiations lead to closing costs being divided. If it is a buyer’s market where there are excess sellers and fewer buyers or if the seller is in a rush to sell, closing costs can be used as a bargaining chip by the seller in order to make the sale go through. In these situations, the seller might agree to pay some of the closing costs, known as seller-paid closing costs.

How to calculate closing costs?

Closing costs calculations are simple. You first estimate the amount for various costs required during closing and you sum them up to determine your total closing costs. If you have the actual values, you can then use those to determine the exact amount that will be required.

Example

For example, how much are closing costs on a house with a price of $400,000 with an $80,000 down payment in New York?

Negotiable Fees: Services You Can Shop For

  1. Home Inspection Fee - $450
  2. Application Fee - $350
  3. Credit Report Fee - $25
  4. Lawyer Fee - $1000
  5. Loan Origination Fee – $4,000 (0.1% of Loan Value)
  6. Discount Points – $0
  7. Title Insurance - $2,000 (0.5% of Home Price)
  8. Homeowners Insurance – $1,600
  9. Title Search Fee - $600
  10. Upfront Mortgage Insurance Premium (MIP) - $0
  11. FHA, VA & USDA Loan Fees - $0

Total Negotiable Costs = $8,425

Fixed Fees: Services Where the Cost Does Not Change

  1. Appraisal Fee - $350
  2. Prepaid Interest – $448 (0.14% of Loan Value)
  3. Property Tax – $1,127 (1.69% tax rate for New York)
  4. HOA Fees – $400

Total Fixed Costs = $3,925

Total Closing Costs = $12,350

Closing Costs as a Percentage of Loan Value = 3.85% ($12,350/$320,000 * 100)

Total Cash Amount Required at Closing = $92,350 ($12,350 Total Closing Costs + $80,000 Down Payment)

What is included in closing costs?

Closing costs can be divided into four main cost segments with each having its own subset of fees. Some of the fees are fixed, such that their cost does not change from situation to situation. However, a majority of the fees are variable, which means you can shop around different providers to get the lowest cost offer.

Closing Costs Summary Table

Specific Fee or ExpenseFixed or Variable
Property-related FeesAppraisal FeeFixed
Home Inspection FeeShop
Title SearchShop
Title InsuranceShop
Mortgage-related FeesCredit Report FeeShop
Application FeeShop
Loan Origination FeeShop
Legal FeeShop
Discount PointsShop
Prepaid InterestFixed
Mortgage Insurance FeesUpfront Mortgage InsuranceShop
FHA, VA & USDA Loan FeesShop
Annual FeesProperty TaxesFixed
Homeowners InsuranceShop
HOA FeesFixed

Property Related Fees

  1. Appraisal Fee – An appraisal is required by the lender to determine the value of the property and the amount that needs to be borrowed. The appraisal fee is around $350.
  2. Home Inspection Fee – This fee is used to determine if the property meets safety and quality standards. Home inspection fees can range from $350 - $600, our calculator assumes $450.
  3. Title Search – If the property being purchased is not new, then a title search is required to ensure there are no issues of ownership or liens. Title search fees can range from $400 - $800, our calculator assumes $600.
  4. Title Insurance – Lenders will require you to get title insurance to ensure that if a situation arises where your ownership is disputed, they can recoup their loan. Title insurance can range from 0.5% - 1% of the home price, our calculator assumes 0.5%.

Mortgage-Related Fees

  1. Credit Report Fee – The lender uses this fee to obtain your credit report. It costs about $25.
  2. Application Fee – Processing the application has a fee of $350.
  3. Loan Origination Fee – This fee is one of the largest, and it is also known as the underwriting or processing fee. It involves preparing and evaluating your mortgage such as notary fee, documentation, checking your financial records, verifying information, and the service provided during the entire process. The fee can change depending on the lender, and hence, it is very important to shop around and find the lowest-cost lender. The fee can range from 0.5% - 1% of the loan value, our calculator assumes 0.75%.
  4. Legal Fee – A lawyer is required at closing to verify all the documents, with legal fees charged hourly. Fees can range from $600 - $1300, our calculator assumes, $1,000.
  5. Discount Points – Points can be bought which can in turn help reduce your mortgage rate. One point can be bought for 1% of the loan amount and it lowers your mortgage rate by 0.25%. For example, if your loan amount is $300,000 at a mortgage rate of 3.25%, you can buy 1 point for $3,000 ($300,000 * 1%) and reduce your mortgage rate to 3% (3.25% - 0.25%).

    Use our mortgage points calculator to see how points will affect your mortgage

  6. Prepaid-Interest – Lenders will require you to pay any interest that is charged from the date of settlement to the first monthly mortgage payment. Prepaid interest can vary based on the number of days interest has to be paid, our calculator assumes 0.14% of the loan amount.

Mortgage Insurance Fee

  1. Upfront Mortgage Insurance – If the down payment is less than 20% of the home value, then the lender will require you to get private mortgage insurance (PMI). PMI can be financed into the mortgage, or it can be paid upfront.
  2. FHA, VA & USDA Fees – Government-backed loans have initial costs that have to be paid. FHA loans require FHA Mortgage Insurance Premium (MIP) which is 1.75% of the loan amount. VA loans have the VA funding fee and USDA loans have guarantee fees.

Annual Fees

  1. Property Taxes – You will be required to pay two months of property taxes. The property rate will be dependent on your location.
  2. Homeowners Insurance – Lenders will require you to get insurance against potential damages. In most cases, 12 months of insurance is paid upfront, our calculator assumes a cost of 0.4% of the home price.
  3. Homeowners Association(HOA) – Some condominium associations have fees for maintenance and improving the public condominium property and amenities.

How do I reduce my closing costs?

Closing costs are an important cost in the process of buying a home and getting a mortgage. There are a few costs that are fixed, but a majority of them are variable where shopping around can get you a better deal. One of the largest closing costs is lender fees, especially origination charges, which can be close to 1% of the loan amount. This is where you can really try to save money. By shopping around for different lenders and with proper negotiations, these fees can be brought down significantly. There are a host of other variable fees where proper research and negotiation can save you a lot of money.

No-Closing-Cost Mortgages

Did you know that you can get a mortgage loan or refinance your existing mortgage without having to pay any closing costs upfront? Some banks and lenders offer no-closing-cost mortgages and no-closing-cost refinances. With this special type of loan, the lender bundles the closing costs of your mortgage directly into your principal balance. This means that you can pay the closing costs over time instead of having to pay them all upfront at closing. However, no-closing-cost mortgages typically have a higher mortgage interest rate compared to conventional mortgages. This means that you will be paying more interest over time. However, no-closing-cost mortgages are still a suitable alternative for borrowers that might not have enough savings to cover closing costs today, and can be a lower-interest cost option compared to alternatives such as getting a personal loan to pay for buyer closing costs.

Источник: https://casaplorer.com/buyer-closing-cost-calculator
MIP box on the closing cost-page.

Pennsylvania deed transfer tax

The deed transfer tax is typically split between buyer and seller. Generally, the buyer pays 1% of the sales price and the seller pays 1%. There are exceptions. Use the drop down box to see if the municipality is listed. If so, choose the municipality. Pennsylvania does not impose a mortgage, recordation, or excise tax on home sales. Read more about the PA deed transfer tax

Seller paid closing costs (aka seller assist)

All of the popular loan programs allow the home seller to pay a percentage of the buyer's closing costs. The maximum percentage varies by program. The seller paid closing cost percentage is built into this calculator. Choose "maximum" for the "maximum" seller paid closing cost percentage. Read more about the seller paid closing costs

Debt to income ratio calculation

The amount you can borrow is largely dependent on your "debt to income" percentage. The ideal mortgage payment is 29% of your monthly GROSS income. Lenders also consider your monthly debt in the equation (i.e. car payment, school loan, credit card, etc.). The "ideal" debt to income debt ratio is 36%. The debt ratio of 41% includes the anticipated mortgage payment. The debt to income ratios vary between loan programs. Enter your monthly (gross) income and monthly debt (excluding the mortgage payment) in the appropriate boxes and the calculator will estimate the debt ratios. Read more about debt to income ratio

Please send me an email if you discover a calculation error or care to make a comment.

Источник: http://www.anytimeestimate.com/PA_HOME_BUYER/pa-home-buyer-purchase-estimate.htm

One common mistake is overlooking the closing costs that need to be paid at the end of the buying process. While budgeting for your home purchase, you’ll want to have an accurate picture of the additional costs you’ll need to pay. Some of these costs may include land transfer taxes, title insurance, property valuation fees, home inspection fees, and legal fees. Visit the pages below to learn more about the costs that’ll apply to your purchase.

  • Closing Costs Overview

    Closing costs, ranging from 1.5 to 4% of selling price, are the legal and administrative costs you will need to pay when your house closes....

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  • Real Estate Lawyer

    Whether you’re buying, selling or refinancing your home, one of the most important people you’ll work with is your real estate lawyer or notary...

    continue reading
  • Interest Adjustment

    An interest adjustment is a closing cost that only some homebuyers have to pay, which makes it a little confusing for those who find...

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  • Statement of Adjustments

    Whether you’re buying, selling or refinancing your home, you’ll need a real estate lawyer or notary to help you complete your paperwork and facilitate the financial transaction...

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  • GST/HST

    If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price...

    continue reading
  • PST On CMHC Insurance

    If you don’t save enough to make a down payment of 20% or more on a home, you will need to purchase mortgage default insurance. More commonly known as CMHC insurance...

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  • Other Buyer’s Fees

    On top of your standard closing costs, there are a few other fees you may have to pay when you purchase your home or condo...

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  • Home Insurance

    It is easy to get overwhelmed during the home buying process. On top of it being the largest transaction you’ve ever made, things move quickly...

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  • Property Taxes

    One of the carrying costs that come with homeownership is your property tax. Property taxes are charged by the municipality you live in, and...

    continue reading

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Источник: https://www.ratehub.ca/closing-costs

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