page will explain the operation of the
Faith Estimate & Mortgage Closing Cost Calculator. I believe
the use of this calculator is self explanatory, but you may
have a question or two. Hopefully this tutorial will clear up
any uncertainties If not, send me an
||Use the drop down box
and choose either Fixed Rate or Adjustable with the drop down
box. Next, choose the mortgage program -
USDA. If the loan
is VA (Vet loan), choose the type of eligibility, 1st time use,
reuse or disabled vet. This choice sets up the correct funding
||1. What county is the
home located in? Choose the Pennsylvania county. This
choice establishes the maximum mortgage amount for the loan
types. The maximum mortgage amounts for FHA, VA & conventional
loans (Fannie Mae & Freddie Mac vary for Pennsylvania counties
2. How many units? Choose the number
of units. One unit is a single family residence or condominium.
This choice also establishes the maximum mortgage amount for
the loan program. The maximum mortgage amount increases as the
number of units increase.
3. What is your credit score? Choose
the credit score range. This
choice estimates the private mortgage insurance premium for
Conventional loans (i.e. Fannie Mae & Freddie Mac) and mip for
FHA & USDA loans.
||4. Enter the sales price
5. What are the annual real estate taxes?
Enter the annual real estate taxes.
6. Enter the annual homeowner's insurance
- Use the drop down box to estimate the homeowner's insurance
as a percentage of the purchase price.
||7. Enter the down payment
percentage. Choose the down payment percentage. If you
choose Minimum, the FHA down payment will be calculated at 3.5%,
VA is 0 percent, conventional loans (fixed rate and adjustable
rate mortgages are based on 5% down payment.
8. Enter the interest rate - Use the
drop down box for the interest rate.
9. What is the term (how long). Use
the drop down box for the mortgage term (i.e. 30 tears, 25 years,
15 tears, etc.),
||10. Enter the origination
percentage. Use the drop down box for the origination
fee percentage. LENDERS: you can enter the origination cost
manually on the closing cost page.
11. Are there discount points? If
there are discount points,
use the drop down box.
||12. Enter deed transfer
tax % to buyer * - Enter the Pennsylvania
tax from below.
||PENNSYLVANIA DEED TRANSFER
TAX - The PA deed transfer tax is paid to the State of
Pennsylvania (1%) & local municipality (.5%) and school district
(.5%). In most areas of Pennsylvania the total cost will be
2% of the sales price (1% to state & 1% to local municipality
& school district), however, there are exceptions. The drop
down box contains the "known" exceptions. If you see one of
the exceptions - choose it, then choose the payment of the transfer
tax (split 50/50, 100% paid by seller, 100% paid by buyer).
By custom, buyers and sellers split the cost 50/50. The deed
transfer tax exceptions may not be up to date. Always check
with the Pennsylvania county or municipality for accuracy. Enter
the deed transfer tax percentage to buyer in the box above .
. . 12. Enter deed transfer tax % to buyer *
||13. Seller assist percentage,
if applicable. If there is a
choose the seller assist percentage. If you desire the "Maximum"
seller assist - choose Maximum. The calculator will limit the
maximum seller assist for an FHA, VA & conventional mortgage
(Fannie Mae & Freddie Mac) based on the guidelines.
14. Seller is paying a flat amount.
The seller may only want to pay a certain dollar amount to the
seller assist (i.e. $4,000), if so, enter that amount on line
14. The calculator will limit the seller assist to the maximum
permitted. For example, if you enter $10,000, and the maximum
available is only $4,000, only $4,000 will be calculated. To
see the total seller assist, look at the DETAILS OF THE TRANSACTION
at the top right.
||If desired, you can enter these fees. Some
real estate agencies charge the buyer a fee. This fee can be
called administration, coordination, document retention, etc.
The other fees are self explanatory.
||Here's a recap of the transaction.
||A break down of the
||This section is provided for the mortgage
loan officer to quickly ascertain whether the prospective buyer
meets the debt to income ratios.
Enter the monthly income and monthly debt (excluding the payment
- the payment is already build into the calculation). Just reoccurring
debt (i.e. credit cards, car payment, etc.).
||You can change any numbers
in the white box. The grey cells are not changeable - they calculate
automatically. LENDERS: you can edit the Discount Points(s)
and Origination Fee in the white box. Additional lines are provided
for fees not listed.
interest: Choose 1 day for a closing on the last day of
the month. 30 days for a closing on the first day of the month.