Monthly
PMI
Monthly cost of Private Mortgage Insurance (PMI). For
loans secured with less than 20% down, PMI is estimated
at 0.5% of your loan balance each year.
Discount
points
Total number of "points" purchased to reduce
your mortgage's interest rate. Each "point"
costs 1% of your loan amount. As long as the points paid
are not a broker's commission, they are considered tax
deductible in the year that they were paid.
Points
paid
The total number of points paid to reduce the interest
rate of your mortgage. Each point costs 1% of your mortgage
balance.
Tax
savings
The value of the tax deduction you receive on your mortgage's
interest and home's property taxes. For example, if you
have $900 in interest and $100 property taxes per month,
the value of the tax deduction would be $280. (At a tax
rate of 28%). Consult an accountant for specific information
related to your particular situation. You may be able
to deduct the interest paid on first and second mortgages
up to $1,000,000 in mortgage debt (the limit is $500,000
if married and filing separately). Any interest paid on
first or second mortgages over this amount is not tax
deductible. Home equity loans are limited to $100,000
or the amount of equity you have in your home. Our calculator
limits your interest deduction to the interest payment
that would be paid on a $1,000,000 mortgage.
Association
and/or maintenance fees
Any fees that you are required to pay to a neighborhood,
Condo, or Home Owners' Association in conjunction with
the ownership of a house or condominium. Association fees
generally cover the costs of commonly enjoyed amenities,
such as a pool, fitness center or even just maintenance
of the physical environs and landscaping. Raintree
Place Neighborhood Association in Orange County Florida
- this is a voluntary association, not a mandatory homeowner's
association (HOA).
Monthly
payment
Monthly principal and interest payment (PI) for the Fixed
Rate Mortgage. This is an interest only payment for an
Interest Only ARM.
