Allied Home Mortgage...

Examples of Interest Rates & Term

As They Effect Monthly House Payment

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Samples of the Effect of Interest Rate & Term on Payment:

MONTHLY P&I ON A $50,000 LOAN
RATE 30 YEAR 25 YEAR 20 YEAR 15 YEAR 10 YEAR
6.5% $316.03 $337.60 $372.79 $435.55 $567.73
7.0% $332.65 $353.39 $387.65 $449.41 $580.54
7.5% $349.61 $369.50 $402.80 $463.51 $593.51
8.0% $366.88 $385.91 $418.22 $477.83 $606.64
8.5% $384.46 $402.61 $433.91 $492.37 $619.93
9.0% $402.31 $419.60 $449.86 $507.13 $633.38

 

MONTHLY P&I ON A $100,000 LOAN
RATE 30 YEAR 25 YEAR 20 YEAR 15 YEAR 10 YEAR
6.5% $632.07 $675.21 $745.57 $871.11 $1,135.48
7.0% $665.30 $706.78 $775.30 $898.83 $1,161.08
7.5% $699.21 $738.99 $805.59 $927.01 $1,187.02
8.0% $733.76 $771.82 $836.55 $955.66 $1,213.28
8.5% $768.91 $805.23 $867.82 $964.74 $1,239.86
9.0% $804.62 $839.20 $898.73 $1,014.27 $1,266.76
Note: P&I is Principal & Interest Only. It does not include taxes or insurance.

Samples of the Effect of Price on Closing Cost & Total Monthly Payment:

(7.0% Interst, 30 Year Term, Typical Taxes & Insurance; FHA is Minimum Down, VA is Zero down & Conventional is 5% down)

 

$45,000 FHA VA CONVENTIONAL
DOWN PAYMENT $600.00 $0.00 $2,250.00
CLOSING COST 1,523.00 1,373.00 2,163.00
PREPAIDS 1,017.50 979.50 1,031.50
----------------- ---------------- ---------------
COST TO CLOSE $3,140.50 $2,352.50 $5,444.50
======= ======= ======= =======
MONTHLY P&I $302.04 $305.38 $284.42
TAXES 105.00 105.00 105.00
HAZ. INSURANCE 25.00 25.00 25.00
M.I. 19.00 N/A 26.00
-------------- -------------- --------------
TOTAL PAYMENT $451.04 $435.38 $440.42

 

$80,000 FHA VA CONVENTIONAL
DOWN PAYMENT $1,800.00 $0.00 $4,000.00
CLOSING COST 1,851.00 1,730.00 2,496.00
PREPAIDS 1,807.92 1,741.92 1,835.92
----------------- ---------------- ---------------
COST TO CLOSE $5,458.92 $3,471.92 $8,331.92
======= ======= ======= =======
MONTHLY P&I $531.97 $542.89 $505.43
TAXES 186.00 186.00 186.00
HAZ. INSURANCE 45.00 45.00 45.00
M.I. 33.00 N/A 47.00
-------------- -------------- --------------
TOTAL PAYMENT $795.97 $773.89 $783.63

 

$115,000 FHA VA CONVENTIONAL
DOWN PAYMENT $2,600.00 $0.00 $5,750.00
CLOSING COST 2,192.00 2,087.00 2,829.00
PREPAIDS 2,589.46 2,495.46 2,589.46
----------------- ---------------- ---------------
COST TO CLOSE $7,381.46 $4,582.46 $11,168.46
======= ======= ======= =======
MONTHLY P&I $764.63 $780.40 $726.84
TAXES 268.00 268.00 268.00
HAZ. INSURANCE 64.00 64.00 64.00
M.I. 47.00 N/A 67.00
-------------- -------------- --------------
TOTAL PAYMENT $1,143.63 $1,112.40 $1,077.51

 

$150,000 FHA VA CONVENTIONAL
DOWN PAYMENT FHA $0.00 $7,500.00
CLOSING COST Not 2,094.00 3,161.00
PREPAIDS Avail. 3,288.50 3,462.50
----------------- ---------------- ---------------
COST TO CLOSE N/A $5,382.50 $14,123.50
======= ======= ======= =======
MONTHLY P&I N/A $1,017.92 $948.06
TAXES N/A 350.00 350.00
HAZ. INSURANCE N/A 84.00 84.00
M.I. N/A N/A 87.00
-------------- -------------- --------------
TOTAL PAYMENT N/A $1,451.92 $1,469.06
The above tables represent EXAMPLES of total monthly payments and the cash required to close. They are based on one particular interest rate, a given down payment, a typical tax rate, and a typical annual homeowner's insurance premium. Changes in any of these can result in a change in both costs and payments. Special note: Increasing the down payment reduces ONLY the P&I portion of the payment (and possibly the MI). Property taxes and hazard insurance remain the same.
Definitions of terms used in the above samples:
Down Payment:
A cash payment paid by the buyer from his/her own funds and applied to the purchase price of the home at closing.
Closing Costs:
Other costs incidental to the purchase of the home which are not applied to the purchase price and not considered "prepaids". The figures in the above tables represent the buyer's expenses such as appraisals, inspections, surveys, and costs to establish a loan.
Prepaids:
Any cost charged at closing paying for a service or coverage in the future. Typical prepaids include insurance coverage and property tax escrow deposits.
Cost to Close:
The total cash the buyer will have to pay at closing including the down payment, closing costs and prepaids.
Monthly P&I:
The portion of the monthly house payment that is applied to principal or interest.
Taxes:
The portion of the monthly house payment that is put into escrow to pay future property taxes-estimated to be 2.8% per year.
Hazard Insurance:
The portion of the montly house payment that is put into escrow to pay for future homeowner's hazard insurance.
M.I. (Mortgage Insurance):
Insurance that the buyer pays to insure the mortgage company against loss incurred through default by the buyer. This allows buyer to purchase with a lower down payment.
Total Payment:
The total payment that the buyer makes to the mortgage company each month. It is the total of principal & interest, taxes, hazard insurance and M.I.

Monthly P&I Factor Table:

There is a "factor" method for figuring out the principal and interest (P&I) portion of your monthly house payment to "customize" the above tables. The factor represents the monthly P&I payment per $1,000 of loan amount. For example, the factor for 9.0% interest, 30 years is $8.05. If your loan balance is going to be $78,400, then the P&I payment would be: 78,400 ÷ 1000 X 8.05 or 78.4 X $8.05 = $631.12 per month.

MONTHLY P&I PAYMENT PER $1,000 OF PRINCIPLE
INT. RATE 30 YEARS 20 YEARS 15 YEARS
6.5% $6.32 $7.46 $8.71
7.0% $6.65 $7.75 $8.99
7.5% $6.99 $8.06 $9.27
8.0% $7.34 $8.36 $9.56
8.5% $7.69 $8.68 $9.85
9.0% $8.05 $9.00 $10.14
9.5% $8.41 $9.32 $10.44
For futher information, rate quotes or good-faith estimates on a particular home, please call Sandi Young:  (210) 279-6340 / (210) 493-8900; or E-mail Sandi@Alamoliving.com.

AlamoLiving * Allied Home Page * Loan Types * How Much House? * Pre-approval