Tim Bradford   
Lending Specialist   
216-324-8113   
OHIO LO.007173.000   
NMLS  250013   

Generate a Loan Worksheet with Fees, Costs, Cash to Close and Payment ONLINE NOW

 

This Calculator is intended to Compare two loan options.

In the calculator you will see the "Better Option" for the initial monthly payment and a "Better Option" over the selected number of months till an expected payoff/change/refinance of the loan.  . 

As you change the number of months till payoff, the "Better Option" may change.  Depending on your plans or goal, this information should assist you in choosing the Best Loan to achieve your plans or goals.   

The accuracy of your input or changes to the shaded cells is very important.  It is also important, when comparing loans that the same amount of cash at closing is required.   Not doing this would create an APPLES to ORANGES comparison.  As indicated in the notes you may have to adjust the Down Payment or Closing Costs to create an APPLES to APPLES comparison.   These adjustments are only for you to compare options accurately.   Based upon your results you can always adjust your cash at closing to take advantage of the loan option that best meets your individual needs.  This could be the Lowest cash at closing, the lowest initial monthly payment or the lowest cash after the number of months your select.    

Notes regarding those fields are:

  • Assumed Rate of Interest - FHA and VA loans will generally have lower rates than Loan Programs.  Besides being affected by the loan type, your Rate of Interest will be affected by your Credit Profile (Credit Scores).

  • Monthly PMI/MIP Factors -  Presently only Conventional & FHA loans have monthly PMI/MIP payments. 

  • Percentage Upfront Financed Cost - Presently FHA, VA and USDA loans all require an Upfront PMI/MIP that is financed into your loan.  There is an option to have a One Time PMI payment for Conventional loans. 

  • Down Payment Percentage -  Each loan type has its own down payment requirement. 

  • Closing Costs - As stated above for an APPLES to APPLES comparison, the cost should be the same for both options.  For this reason you can just enter the difference between the two loan options you are considering. 

  • Cancel Monthly PMI/MIP at - On FHA and Conventional Loans this will be 78%.   VA loans do not have a Monthly Premium.   USDA loans at this time do not have a Monthly Premium, however in the near future there will be a .30% Premium that will be collected for the life of the loan.  When that takes effect this field should be changed to .00%. 

.... USDAvsFHA.xls

         
Comparing Two Different Loan Options    
This calculator should not be used as the sole basis to determine the "Better Option". Because of Tax implications, you should also consult a Tax Professional. The accuracy of this spreadsheet is determined by input. Flawed input will distort the "Better Option" Indicators.    
Defaults used to Calculate Better Option    
Mortgage Scenario Descriptive    
Assumed Rate of Interest    
Monthly PMI/MIP Factor    
Percentage Upfront Financed Cost    
Down Payment Percentage    
Closing Costs (or Difference between options)    
Cancel Monthly PMI/MIP at    
 
Estimated Term of Monthly PMI/MIP    
Average Monthly PMI/MIP till Cancelation    
   
Purchase Price    
Loan Amount w/down payment    
Finance Upfront or Guaranteed    
Mortgage Insurance **    
Total Loan Amount    
Mortgage Payment Principle &Interest    
Monthly Mortgage Insurance **    
Total Monthly Payment ***    
Savings or Cost    
Better Option for Monthly Payment    
Select Term ---> Calculate for Months till Payoff <--- Select Term    
   
   
   
   
Down Payment and Closing Costs    
   
Savings or Cost    
Better Option for Term Selected    
** Because the calculations of the Upfront and Monthly Insurance differ between CONV, FHA, VA, USDA a simplistic calculations are performed on this calculator. Ask your Loan Officer to verify the math and also discuss the pros and cons of each program. Also, consult your Tax Preparer as the deductibility of Interest and PMI may influence the "Better Option" with your particular circumstances.    
*** Does not include escrows for Real Estate Taxes or Homeowners Insurance    

 

Questions, comments, or suggestions?
Please contact me:
Tim Bradford, American Midwest Mortgage Corp.
Telephone: 216-324-8113


Updated

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Tim Bradford -- Ohio MB.803389 -- LO.007173 ---- NMLS CO.142066/LO.250013
6363 York Road #300, Parma Heights, Ohio 44130
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