Amortization Schedule

      FYI: Buying & Selling

 

When buying a home, rarely will a person have the cash to cover the full purchase price of the home. The portion of the price that is paid in cash is called the down payment. The balance of the price involves some form of loan. The seller may accept part of the price with future payments or allow an existing loan to be assumed. Most often, however, the buyer will have to get a new loan from some type of financial institution--a bank, savings and loan, or mortgage broker. Analysis of a buyer's ability to borrow money for a purchase is referred to as qualifying. This ability to obtain new financing depends on many things: value of collateral, size of down payment, buyer's credit and buyer's income and debts. Feel free to use the qualifying worksheet for a conventional loan supplied here to give yourself an idea of what will be required. CONVENTIONAL QUALIFIER Purchaser's Monthly Income                  $______________ Co-Purchaser's Monthly Income            $______________ Other Income                                        $______________ Total Income                                         $______________ Income Ratio Total income x 28% is (maximum house payment)  $__________ Debt Ratio Total income x 36% is (maximum house payment  + monthly debt                                                       $__________ Debts                                   Monthly Payment ____________________     $_______________ ____________________     $_______________ ____________________     $_______________ ____________________     $_______________ ____________________     $_______________ ____________________     $_______________ ____________________     $_______________ Total monthly Debts:          $_______________ Subtract Total Monthly Debts                                  $__________ Equals Maximum house payment if lower than 28%  $__________ Buyer qualifies if this amount is more than their proposed house payment. To establish maximum amount purchaser can borrow, please continue: Enter Maximum House Payment               $_____________ Minus estimated monthly property taxes    $_____________ Minus estimated monthly hazard insurance $_____________ Minus estimated monthly PMI insurance    $_____________ Equals buyer's maximum P &I                   $_____________ For estimation purposes only. Final figures will be made by your lender.