FINANCE TOOLS Consumer Financial Protection Bureau

GREAT interactive chart of how monthly mortgage cost changes for the same home price at different interest rates

FOR A 10% DOWN PAYMENT INSTEAD OF THE 20% ASSUMED IN CHART SIMPLY ADJUST AS FOLLOWS: FOR EVERY $10,000 LESS IN DOWNPAYMENT SIMPLY ADD $50 MONTHLY TO THE PAYMENT.                     

EXAMPLE: Say you’re looking at a $500,000 home with 10% down instead of 20%. That’s $50,000 less down payment. Simply divide $50,000 by $10,000 = 5. Just multiply 5 x $50 (again, since every $10,000 added to a mortgage adds approximately $50 month to the payment). So the mortgage payment would be $250 higher monthly when putting 10% down ($50,000) instead of 20% down ($100,000) on a $500,000 home

NOTE FOR TAXES & INSURANCE: This interactive chart shows a 20% down payment, 1.25% tax rate, and .5% for insurance, with no HOA dues factored in; however in Charlotte, this is approximately .25% higher for estimated taxes/insurance - so typical HOA dues can be included for the purposes of this chart. (If you’re looking at 55+ neighborhoods, which include lawn care and higher dues, simply add a cushion of $200/month to the payments shown).

STRATEGY TO ALLEVIATE PMI WITH LESS THAN 20% DOWN

WHAT IS PMI

ANOTHER GREAT interactive chart of how much the same monthly mortgage cost will BUY in terms of home price at different interest rates

GREAT MORTGAGE TOOLS TO CALCULATE EVERYTHING YOU CAN THINK OF

CONSUMER FINANCIAL PROTECTION BUREAU TOOLS:

Consumer Financial Protection Bureau TOOLS

COMPARE INTEREST RATES & PROGRAMS

How to COMPARE loan offers from lenders

How do loan discount points and lender credits work?

How to understand your closing disclosure statement before closing?

FHA LOANS

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