Instructions
If you are not confident using calculators you may start using our simpler MC1000 mortgage calculator, if you are a first time home buyer this calculator will help you a lot to understand how the money is distributed in the process of buying a home with a mortgage.
MC2000 is the most advanced mortgage calculator it also incorporates insurance, taxes and PMI so you can exactly calculate how much your monthly payments are going to be. If you are a computer savvy kind of person you may start directly with this calculator.
MC1100 is an intermediate level calculator between MC1000 and MC2000.
Our calculators are a continuing experimentation on how to make easy the process to understand what a mortgage is. All the calculations are performed "in" your computer (like a REAL calculator), they are not forms that are sent to a server solved and the answer is send back to your computer so our system is a lot faster and way more reliable.
Buttons PH, PD, LM and AR are present in all our calculators.
Buttons SM, PP and n are present only in MC1100 and MC2000.
Buttons AT, AI and PMI are only in MC2000.
All this buttons prompt the corresponding data inputs in the screen as well as calculate new results each time they are pressed, touching the corresponding screen place has exactly the same effect.
The ENTER button calculates the new results and at the same time prompts for the next data input sequentially.
BKS = backspace button, eliminates the last written character.
CLR = clear button, clears to zero the prompted entry.
Rprt = Report button, calculates the last entry and then shows a report with the results as well as the amortization table that gives the opportunity to print it using the "Print" button or return to the calculator pressing "Calc".
Inputs explanation
Price of Home (PH): self explanatory by itself it can also be the price of a car or any other loan.
Percentage Down (PD): the percentage of the PH that is given upfront as down payment.
Length of Mortgage (LM): the intended number of years to pay back the lending also known as the term.
Annual Rate (AR): is the agreed rate that the lender charge annually for the lending this calculators are for FRM (Fixed Rate Mortgage) only. It is supposed that the buyer has to shop around looking for the best rate the lower the better.
Calculate at Month n (n): the user can specify the month at wich the calculations in the screen are done.
Annual Tax (AT): (MC2000 only) the annual tax is decided by the gubernatorial authorities and it depends of the location of the property and of the annual appraising of the same. It may vary a lot year by year the amount can be estimated at buying time by finding the property in the locality's property appraiser website.(advise: insert appraiser + location in the google search engine)
Annual Insurance (AI): (MC2000 only) Mortgaged homes are required to have a qualified insurance. If the amount is unknown an estimate can be given by any insurer. A gross estimate may be 1% annually of the price of the home.
Private Mortgage Insurance (PMI): (MC2000 only) If the down payment is less than 20% of the price of the home a PMI is required by most lenders. This is another value that buyers have to shop around, the lesser the better. The purpose of PMI is to protect lenders from loss if a borrower defaults on their loan.
Down Payment (%)----Annual PMI Premium
0-4.99%-------------0.96%
5-9.99%-------------0.78%
10-14.99%----------0.52%
15-19.99%----------0.32%
The preceding sample table was pulled from:
http://www.citytowninfo.com/mortgage-articles/related-products-and-services/private-mortgage-insurance
Starting Month (SM): if the decision of doing monthly prepayments (PP) is made at any month of the term yo can insert the corresponding month number in this entry.(exclusively MC1100 or MC2000)
Monthly Prepayment (PP): It is always possible to shorten the length of the mortgage by doing payments against the principal(the amount of the lending that reduces in certain amount monthly) when the principal become zero the debt is finished. A great saving in interest and reduction of the term can be made by doing a methodical monthly extra payment you can check this using our MC1100 or MC2000.
Outputs Explanation
Amount Financed: is the price of the home(PH) minus the down payment. It is also the starting principal that will be diminishing according to the composite interest formulas as monthly payments are realized.(MC1000, MC1100, MC2000)
Down Payment: calculated percentage down(PD) from the price of the home(PH).(MC1000, MC1100, MC2000)
Total Interest to Pay: is the price payed for the lending to the lender. It is calculated using the composite interest formulas and express the addition of all the monthly payments to the interest. (MC1000, MC1100, MC2000)
Prepayment Savings: in case extra Pre-Payments to the principal are made this number express how much will be saved in doing so.(MC1100, MC2000)
Term W/Prepayments: in case extra Pre-Payments to the principal are made this number express how long the mortgage is going to last.(shorten)(MC1100, MC2000)
Month Principal: the calculated amount of money that goes to pay the principal at month "n" entered in the "Calculate at Month n" box.(MC1100, MC2000)
Month Interest: the calculated amount of money that goes to pay the interest at month "n" entered in the "Calculate at Month n" box.(MC1100, MC2000)
Month P+I: The addition of the corresponding monthly principal plus the monthly interest at month "n" entered in the "Calculate at Month n" box.(MC1100, MC2000)
Month Tax: the annual Tax divided by 12 months.(MC2000)
Month Insurance: the annual insurance divided by 12 months.(MC2000)
Month PMI: the payments made to Private Mortgage Insurance at month "n" entered in the "Calculate at Month n" box. This will disappear once the principal falls under the 80%.(MC2000)
Month Tax+Ins+PMI: is simply the addition of the three last values (Tax, Insurance and Private Mortgage Insurance) at month "n" entered in the "Calculate at Month n" box.(MC2000)
Month Total Payment: the addition of all the constituent parts. (monthly principal, interest, Tax, Insurance, PMI)(MC2000)
