Pennsylvania Closing Cost & Mortgage Calculator Tutorial
 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, feel free
to send me an
E-mail. If you're like me and jump into programs without reading
the tutorial, you can scroll down and see if you're missing any
entries. All entries are required for calculation - except the seller
assist option.Proceed to the Buyer Good Faith Estimate - GFE |
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Use the drop down box and choose the mortgage program - FHA, VA, or FIXED, ARM (Fannie Mae, Freddie Mac). FHA should be selected for both fixed & adjustable rate FHA mortgages. FIXED & ARM are Fannie Mae & Freddie Mac loans. 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. Top of Page |
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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 will determine the likely private mortgage insurance premium for FIXED RATE & ARM mortgages - Fannie Mae & Freddie Mac. This choice will not affect the calculation for FHA & VA mortgages. This calculator makes no assumptions on credit score for these mortgages. Top of Page |
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4. Enter the sales price - 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 - Enter your opinion of the annual homeowner's insurance premium. You will be presented with a "hint", however, this suggestion may not be accurate, it's provided to give you a reference point. Top of Page |
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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, and FIXED &
ARM (Fannie Mae & Freddie Mac) at 5%. 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.), Top of Page |
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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. Top of Page |
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12. Enter deed transfer tax % to buyer * - Enter the Pennsylvania deed transfer tax from below. Top of Page |
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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 * Top of Page |
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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. Top of Page |
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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. Top of Page |
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Here's a recap of the transaction. Top of Page |
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A break down of the mortgage payment. Top of Page |
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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.). Top of Page |
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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. Top of Page |
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