Lender purchase calculator

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 loan 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 seller and buyer. Generally, the seller pays 1% of the sales price and the buyer pays 1%. There are a few exceptions. Use the drop down box to see if the municipality is listed. If so, choose the municipality. Pennsylvania does not impose a recordation, mortgage, 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 permit the home seller to pay a percentage of the buyer's closing costs. The maximum percentage varies by loan 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 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 s 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.