Your Questions About Mortgage Loan Calculator

Laura asks…

Mortgage Calculator?

where to get mortgage calculator for housing loan with Malaysian context?

John answers:

Input your data to calculate your mortgage in Malaysian context.

Maria asks…

How to use a mortgage calculator?

I’m trying to figure out how much house I can afford. I’ve been putting numbers into mortgage calculators and was curious what exactly counts into “total monthly debt.” Is it just credit cards and loans or is it also obligations such as cell phone, tv, utilities, etc.?

John answers:

Don’t use a mortgage calculator and don’t listen to people on YA, go see a lender and get qualified by a professional that knows what they are doing.

Using 3 times your income to determine your eligibility is ridiculous. It does not work. A person that makes $12,000 / year cannot qualify for a $36,000 house and a person that makes $250,000/ year can qualify for more than a $750,000 house. Someone who makes $1000 a month and has 50% of their in some used on a mortgage has $500 left and that’s unlivable. A person that makes $20,000 a month and uses 50% of their income has $10,000 a month, that’s a big difference!

As I said, speak to a loan officer who knows what they are doing.

Mark asks…

Where can I find a mortgage calculator to see differences if I pay more principal?

The only ones I am finding are for new loans. I need one where I can plug in what I owe on my mortgage interest rate etc then how much I would save by adding additional principal each month. We already pay some additional principal but I want to compare it to my mortgage company’s bi-weekly payment plan.

John answers:

Best is to do it yourself in Excel

bi-weekly payment plan is a rip — you’d get same result by making an added 1/2 payment each six months and no promises of more. This preserves flexibility — if you get squeezed, you can put off the added payment. In a time of “rolling unemployment” preserving financial flexibility is essential.

David asks…

how we calculate the monthly payment when we give the insurance in mortgage calculator?

if user want to take a lon for buying house.Actually the house cose is 10,0000 and the user have amount(down payment) 2,00000 So,He wants to take a loan 8,00000 from bank,and he had some amount as insurance(For Ex.5000) .Now my question is user pay monthly some amount to bank .For that monthly payment how we use the insurance that means insurance is calculated with which value Loan amount or else.Please Give me the brief description.Thanks in advance

John answers:

If you want to put down twice what the house is worth, you don’t need a mortgage.

When you go to buy the house, you can ask the prior owner what THEY were paying for insurance.

Your lender will calculate how much you need to pay in for the escrow account, IF you end up having escrow. Otherwise, it just becomes part of your monthly budget.

Chris asks…

How hard would it be for a 19 year old to get a mortgage loan?

I’m 17, will be 18 in June, but my fiance of 2 years is 19, will be 20 in the fall. Recently I found out I was pregnant. We’re looking into renting, but I can’t help but notice all the home auctions and short sales due to the economy. Using loan calculators, I figured out that if we could buy, we would be saving about 400 dollars a month. (900 a month for rent vs. 500 a month for mortgage). It would definitely be worth putting our money into an investment also. What is the chance that a 19 year old could get approved? The homes we’re looking at are actually around 70k but we wouldn’t go over 90,000. All the homes are either an auction due to being foreclosed on or a short sale. He has one credit card, with no where near the limit on it and makes the payments before he even gets the bill. He hasn’t had the card for that long though.He’s had a checking account since he was 16 and has overdrawn twice, but only by a few dollars. He has a pretty decent part time job, and is getting another full time to go along with it. I graduate in about 4 weeks, at which time I’ll be getting a full time job, though I don’t think I can be a co applicant due to my age.
Well, he hasn’t had his job for 2 years, only 1 1/2. That’s the part time job though, he’s pretty much guaranteed a full time job to go along with that. I’m not emancipated, but we are going to be married soon, so does that qualify me to sign? We do have enough money for a down payment and closing costs. He has about 20k in matured savings bonds, and I have about 5k saved up in the bank.

John answers:

There are many first time home buyers programs available in your city or county. You should check with your city’s or county’s Housing Department. They will have all the information you need as well as a list of lenders that are authorized to do the loan programs for the city.

A part time job will not suffice, you or your boyfriend will have to have full time employment for at least two years.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

Make sure your mortgage broker explain all your options so you may make an intelligent decision.

What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

So select the best option for you and your financial situation.

You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

I hope this has been of some use to you, good luck


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