Pennsylvania Closing Cost and Mortgage Calculator
Pennsylvania law requires real estate agents to provide both buyer and seller with “Statements of estimated cost and return”. The closing cost estimate must be provided before an agreement of sale is executed. Each party to the sale must receive a written estimate of reasonably foreseeable expenses associated with the sale that the party may be expected to pay, including, but not limited to: the broker’s commission, the mortgage payments and financing costs, property taxes, assessments and settlement expenses. The cost estimates are required to be as accurate “as may be reasonably expected of a person having knowledge of, and experience in, real estate sales”. The PA mortgage and closing cost calculator was developed to help real estate agents and homebuyers understand the down payment and closing costs associated with the sale. Please understand that this calculator is only for illustrative purposes and specific costs and questions should be directed to a mortgage professional. Here's the tutorial - Mortgage Calculator Tutorial. Also, click outside the box to "lock in" your choice or use the tab key. The Pennsylvania home seller cost estimate can be found with this link – PA seller estimate.
This estimate assumes an owner occupied residence or condominium. FIXED and ARM refers to loans underwritten to Fannie Mae guidelines (i.e. 5%, 10%, 15%, etc.). These loans are commonly called "conventional" loans. You can override the mortgage insurance premium with the PMI | MIP box on the closing cost-page.
Pennsylvania deed transfer tax
The deed transfer tax is typically split between buyer and seller. Generally, the buyer pays 1% of the sales price and the seller pays 1%. There are exceptions. Use the drop down box to see if the municipality is listed. If so, choose the municipality. Pennsylvania does not impose a mortgage, recordation, or excise tax on home sales. Read more about the PA deed transfer tax
Seller paid closing costs (aka seller assist)
All of the popular loan programs allow the home seller to pay a percentage of the buyer's closing costs. The maximum percentage varies by program. The seller paid closing cost percentage is built into this calculator. Choose "maximum" for the "maximum" seller paid closing cost percentage. Read more about the seller paid closing costs
Debt to income ratio calculation
The amount you can borrow is largely dependent on your "debt to income" percentage. The ideal mortgage payment is 29% of your monthly GROSS income. Lenders also consider your monthly debt in the equation (i.e. car payment, school loan, credit card, etc.). The "ideal" debt to income debt ratio is 36%. The debt ratio of 41% includes the anticipated mortgage payment. The debt to income ratios vary between loan programs. Enter your monthly (gross) income and monthly debt (excluding the mortgage payment) in the appropriate boxes and the calculator will estimate the debt ratios. Read more about debt to income ratio
Please send me an email if you discover a calculation error or care to make a comment.