Pennsylvania Closing Cost & Mortgage Calculator Tutorial

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This page will explain the operation of the Pennsylvania Good 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 E-mail.

Which loan program is right for me?

VA home loan

If you're an eligible veteran with little or no cash, or cannot make a significant down payment, choose the VA home loan with the maximum seller paid closing cost option. Read more

FHA home loan

The FHA is a very popular loan program for home buyers with little or no cash. The down payment is only 3.5% and the seller can pay a large percentage of the home buyer's closing costs. Choose "maximum" under the seller assistance option to obtain the lowest cash requirement. Read more

USDA home loan

The USDA loan does not require a down payment - zero. Like the FHA program, the seller is permitted to pay a large percentage of the buyer's costs. There are income limits and area requirements. Read more

Conventional home loan

The conventional loan is best when there is a down payment of 5% or more. The seller can also pay a percentage of the home buyer's closing costs, although the maximum amount is dictated by the down payment percentage. Read more

Loan set up - FHA, VA & conventional. Veteran Use

Use the drop down box and choose either Fixed Rate or Adjustable with the drop down box. Next, choose the mortgage program - Conventional, FHA, VA, or 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 fee.

Pennsylvania County, number of units, & credit score

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.

Sales price, annual real estate taxes, and annual homeowners insurance

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.

Down payment percentage, interest rate and term

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.),

Origination percentage and discount points

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.

PA deed transfer tax to buyer

12. Enter deed transfer tax % to buyer * - Enter the Pennsylvania deed transfer tax from below.

Deed transfer tax exceptions and cost

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 *

Seller assist options. Percentage and flat amount

13. Seller assist percentage, if applicable. If there is a seller assist, 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.

Optional entries. Real estate agency fee, earnest money deposit, and credit report

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.

Details of the transaction

Here's a recap of the transaction.

Estimated monthly payment

A break down of the mortgage payment.

Debt to income. Payment ratio and debt ratio

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.).

Estimated closing costs

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.

Per diem 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.