Loan estimate comparison calculator

Calculator operation

The loan estimate calculator is simple in design, but extremely powerful. You can calculate two loan scenarios on a single home or compare the cost difference between two properties. The calculator is very good at estimating the difference between an offer and counter offer.

There are some subtle features that you should be aware of. Column "B” will pick up some choices from column "A". For example, the calculator assumes that you are purchasing a home in the same county and that a one, two, three or four unit property is being purchased. You will notice small arrows pointing to some of the input boxes. These boxes must contain a value for the calculator to produce an estimate. Once the input box contains a value, the arrow will clear.

PA transfer tax

Pennsylvania and the local municipalities and school districts charge a transfer tax on property sales. The state charges 1% on the sales price and most municipalities charge 1% together; however, there are some exceptions. Use the drop down box to see if the home is located in one of the municipalities that charges ore (or less). If you see the municipality where the home is located, select the municipality. The transfer tax percentage will change. By custom, the buyer and seller split the transfer tax cost. Read more

Seller Paid Closing Costs (aka seller assist)

The home seller is permitted to pay a percentage of the home buyer closing costs. Again, the seller is permitted, not obligated to pay the buyer's costs. If the seller is willing to pay some of the home buyer's closing costs, you can use the drop down box for a percentage of costs to be paid, or use the "Seller is paying a flat amount" box on line 16. The flat seller assist box overrides the percentage calculation. Read more

Debt to income calculation

Lenders use a formula called debt to income to determine the maximum mortgage payment and maximum monthly debt that a borrow is permitted for a home loan. Use the monthly income box (gross income) and monthly debt box to estimate the debt to income ratios. Determining monthly income and monthly debt for a mortgage is more art than science. Read more about debt to income. Read more

View closing costs

The closing cost page lists the closing, escrow and prepaid costs. Once again, column "B" will pick up some of the fees from column "A". The boxes with a grey background cannot be changed. Values in the white boxes can be changed. You will notice that there are some boxes labeled as "override" boxes. Most lenders will calculate the origination fee and discount point(s) as a percentage of the loan, however, the lender may charge a "flat dollar" amount for these costs. If so, the fixed cost can be entered in the appropriate box and the cost will override any percentage calculation.

Closing date

The borrower pays interest from the 1st day of the month to the closing day, including the day of closing. The highest cost for the per diem, is a closing on the first day of the month. Closing on the last day of the month is the lowest cost. You can adjust the days in the month with the drop down box. Choose 30 days for a closing on the 1st day and 1 day for a closing on the last day of the month. Read more about per diem interest

Additional calculations

A box is provided for an additional down payment on the closing cost page.

If you pre-pay an appraisal fee, credit report, or earnest money, enter those payments in the appropriate boxes and the advance monies will be subtracted from the cash requirement.

The mortgage insurance costs are built into the calculator. We try to keep the monthly insurance percentages current; however, the percentages may not be exactly accurate. For this reason, the monthly mortgage insurance premium can be overridden with the input boxes.