Mortgage Qualifier
The first step in buying a house is determining your budget. This calculator
steps you through the process of finding out how much you can borrow.
Fill in the entry fields and click on the "View Report" button to see
a complete amortization schedule of your mortgage payments.
Information and interactive calculators
are made available to you as self-help tools for your personal
use and are not intended to provide investment advice. Independent
Bank of Texas
can not and does not guarantee their applicability or accuracy
in regards to your individual circumstances. All examples are
hypothetical and are for illustrative purposes. We encourage you
to seek advice from qualified professionals regarding all finance
issues.
Definitions
Annual income:
Your annual income before taxes. For married couples this is your
total combined annual income before taxes.
Purchase price:
The price of the home you wish to purchase. This is the actual price
you'll pay, not including any closing costs.
Total monthly payment:
Total monthly payment that you can qualify for. This is the total
of principal, interest, taxes and insurance paid each month. Often called
PITI.
Cash on hand:
Cash you have for the down payment and all closing costs.
Interest rate:
The current annual interest rate you can receive on your mortgage.
Term in years:
The number of years over which you will repay this loan. The most
common mortgage terms are 15 years and 30 years.
Property tax rate:
Your property tax rate. 1% for a $100,000 home equals $1,000 per year
in property taxes.
Home insurance rate:
Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500
per year for homeowner's insurance.
Monthly car payment(s):
Total monthly payment for your car loan(s).
Credit card payments:
Total monthly minimum payments for your credit cards.
Other loan payments:
Any other installment loan payments, such as student loans or
unsecured loans.
Total closing costs:
Total upfront costs to close your loan. This is the total of
your loan origination fee, points paid and other closing costs.
Loan origination rate:
The percentage the lending institution charges for its origination
fee. 1% for a $100,000 home equals $1,000.
Number of points paid:
The total number of points paid to reduce the interest rate of your
mortgage. Each point costs 1% of your mortgage balance.
Other closing costs:
Estimate of all other closing costs for this loan. This should include
filing fees, appraiser fees and any other miscellaneous fees paid.
Monthly PMI payment:
Monthly cost of Principal Mortgage Insurance (PMI). For loans secured
with less than 20% down, PMI is estimated at 0.5% of your loan balance
each year. Monthly PMI is calculated by multiplying your starting loan
balance by this percent and dividing by 12. When the equity in your home
exceeds the percentage required for PMI, your PMI payment drops to zero.
Please note that this is only an estimate of your actual PMI. The amount
you may be required to pay may be higher or lower than our estimate.
Monthly PI payment:
Monthly principal and interest payment.
Total for down payment:
Total funds remaining, after closing costs, for down payment.
Limit down payment:
Limit your down payment to percentage required to eliminate the
need for PMI payments. Even if you have more cash on hand than required
for closing costs checking this box will limit your down payment to the
minimum amount required to forego PMI.
Show schedule by month:
Display the payment schedule by month when you press the "View
Report" button.
Show schedule by year:
Display the payment schedule by year when you press the "View
Report" button.
Total annual income debt percentage:
Not shown. This is the percentage of your annual income your
financial institution allows you to use for debt installment payments.
This includes car payments, credit card payments, other loan payments
and your "Principal, Interest, Tax and Insurance" payment for your home.
The default rate is 36%.
PITI annual income percentage:
Not shown. This is the percentage of your annual income your financial
institution allows you to use for your "Principal, Interest, Tax and Insurance"
payment for your home. The default rate is 28%.
Qualify amount:
Shown as "Total monthly payment." This is the total amount you qualify
for per month. This amount is the total of "Principal, Interest, Tax and
Insurance" for your home.
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