620 Old Hickory Jackson, TN 38305 Phone: (731) 668-7700 Mobile: (731) 215-0035 Email Tara

Figure out how much you can afford and make your home search more effective

 

Securing mortgage financing is an important step in the real estate purchase process. There are lots of options to explore to find the fit that's right for you. Figure out how much you can afford and make your home search more effective. Or if you already own your home, in today's market, refinancing can be an attractive option.

There is much personal satisfaction in living in a home that you own. A home is still a valued investment which can have many financial advantages and tax benefits. The amount of interest you pay on a home loan and the real estate taxes you pay on your home are among the few major federal tax deductions. Owning a home is the primary way most people build wealth. Homeownership is also good for our communities, because families who own their homes are more involved in their local communities and participate in local events.


When looking for a mortgage lender, do yourself and your bank account a big favor: Do your homework and shop around. In the end, what you want in a lender is quality, not necessarily the bottom rate. While you're perusing the aisles of mortgage lenders, think of these points:
Fantastic rates usually spell trouble. Lenders offering fantastic rates may have just set up shop to take advantage of the refinance market. If local Realtors? do not recognize them, then they may not be in business later when you need them. Fantastic rates also usually mean excessive fees and other hidden costs. Do not first shop for a loan based on rates and fees; first meet with lenders to find out what the best financing source for you is -- FHA, VA, FNMA or FHLMC. And if you are told you can get a significantly lower rate from a lender, that lender is probably a "bait-and-switch" artist. You will not actually be able to get that rate. Run fast. Experienced and reliable lenders should be able to tell you at the time of your application whether your loan will be approved. Do not find yourself in the position of finding out weeks after the application was taken -- and you've paid fees -- that your loan was denied. Your estimate should closely mirror final loan documents. If the difference is significantly higher, ask an attorney to review the papers. You shouldn't have to pay more fees than you were quoted. At the time of application, get in writing the lender's policy regarding the locking in of rates and fees.

Because there are so many consumer loans on the market and so many different structures of rates and fees, you need an experienced professional to help you determine which the best is for you. They should ask whether you expect to be in your new home longer than five years; whether you want to pay off your loan or lower your payments; whether your income is fixed, stable or will be increasing; what the best tax strategy is for your individual situation. If the loan officer doesn't ask all of the above, that officer most likely doesn't have the experience necessary to furnish you with a professional mortgage consultation. Regarding discount fees: They are to be prepaid interest charges. The lower the loan fee, the higher the interest rate. A mortgage lender who raises the interest rate can then "pay" your closing costs. Doing so can amount to thousands of dollars, increase your loan amount to more than you need, and, cost you additional thousands in interest over the life of your mortgage. Factor that into any lower rate scenario you're considering.

Ask the lender for examples of the loan program selected. The examples should show totals of payments, totals of interest rates paid and loan balances after selected lives of the loan.


 

 


 


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

Complete the fields below and click Calculate Now. To view the results of each calculation, click on the various tabs.  To email yourself a copy of the results, click the Receive this Detailed Analysis link.

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

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