MORTGAGE INFORMATION SHEET

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Mortgage Terms – provide a definition for each term

  1. escrow account -
  2. amortization -
  3. closing -
  4. closing costs -
  5. title insurance -
  6. deed -
  7. appraisal -
  8. settlement -

Private Mortgage Insurance

Generally, you need a down payment of 20% of your mortgage amount to avoid paying Private Mortgage Insurance (PMI). PMI rates will vary based on the cost of your home and the amount of your down payment, but they typically amount to one-half of one percent (0.5% or 0.005) of your loan principal. For example, let's say you put down 10 percent or $10,000 on a $100,000 house. The amount of your loan principal will be $90,000 (the cost of the house minus your down payment. The lender multiplies the $90,000 loan principal by the PMI rate of 0.5%. The result is an annual PMI of $450, which is divided into monthly payments of $37.50.

  1. Based on the cost of your home, do you have a sufficient down payment to avoid PMI?
  2. If not, how much will the PMI cost you per month?

Finding a Good Mortgage

  1. Use an Internet search engine to find mortgage rates in the area in which you are purchasing your home. When you find the best rate for your home, provide the following:
  2. name of the mortgage company -
  3. type of mortgage (fixed, variable, balloon, etc) -
  4. number of points -
  5. interest rate -
  6. Go to www.mortgage-calc.com. Select the Simple Amortization Calculator from the list. Enter the purchase price of your home less your down payment for the amount of the principal. Enter the interest rate for your loan and then the length of the loan (number of years in the mortgage time 12 months). Provide the following:
  7. Principal -
  8. APR -
  9. Monthly loan payment -
  10. Total Interest (last amount shown in the Total Interest column) -
  11. Total Loan Value (last amount shown in the Payment column) -
  12. If your mortgage has points, how much cash will you be paying for the points on settlement day? (You will need to make a calculation based on what you have learned about closing costs.)

Additional Costs

  1. Cost of One-Way Truck Rental
  2. Source of information:
  3. Cost of Vehicle:
  4. Length of Rental (Days):
  5. Mileage limit, if any:
  6. Insurance costs (basic coverage):
  1. Telephone, Internet and TV Hookup
  2. Service Provider:
  3. Installation fee:
  4. Equipment Rental Fees (HDTV boxes, routers, etc.):
  5. Monthly fee:
  1. Home Inspection (See the HUD website for details)
  2. Cost of Professional Inspection:
  3. How many hours will the inspection take:
  4. Can you attend the inspection:
  5. Once the inspection is complete, how long will it take to get your report:
  1. Closing Costs (Use the Yahoo website for the calculation)
  2. What is the typical cost for the following items:
  3. origination fee: %
  4. lender fees (processing/underwriting): $
  5. credit report: $
  6. appraisal: $
  7. title insurance: $
  8. reconveyance fee: $
  9. recording fee: $
  10. wire and courier fees: $
  11. endorsement fee: $
  12. title closing fee: $
  13. title document prep fee: $
  14. Based on your mortgage information, what are you approximate closing costs: $
  15. If you decide to pay these costs as part of your mortgage, how much extra money will you pay each month? $