Formula Charts
Using the table that follows this one, there are specific numbers that are “factors” where one can input into the formulas noted below to calculate the details on a loan.
PAYMENT FORMULAS
LOAN AMOUNT
X
FACTOR
(Chart for rate/years)
=
Principle & Interest (P&I)
LOAN AMOUNT
X
1.4% ÷ 12 months
=
Monthly Hazard Insurance
LOAN AMOUNT
X
.8% ÷ 12 months
=
Monthly Flood Insurance
LOAN AMOUNT
X
.0052 ÷ 12 months
=
Monthly PMI (conv. 80 - 90% LTV)
LOAN AMOUNT
X
.0078 ÷ 12 months
=
Monthly PMI (conv. 90 - 95% LTV)
LOAN AMOUNT
X
.85% ÷ 12 months
=
Monthly MIP (FHA)
PROPERTY TAX FORUMLA
SALE PRICE - $75,000 (Homestead Exemption)
X
1.7 ÷ 12 months
=
Orleans Property Tax
SALE PRICE - $75,000 (Homestead Exemption)
X
1.3 ÷ 12 months
=
All Other Parishes Property Tax
CONVENTIONAL QUALIFYING
Gross Monthly Income
X
28%
=
Max. P.I.T.I. (housing expense income)
Gross Monthly Income
X
43%
=
Monthly Debts + Max. P.I.T.I.
Gross Monthly Income
X
43% - monthly debts
=
Max. P.I.T.I.
FHA QUALIFYING
Gross Monthly Income
X
31%
=
Max. P.I.T.I. (housing expense income)
Gross Monthly Income
X
43%
=
Monthly Debts + Max. P.I.T.I.
Gross Monthly Income
X
43% - monthly debts
=
Max. P.I.T.I.
TO FIND MAXIMUM LOAN AMOUNT
P.I.T.I.
X
60%
Rate Factor
=
Maximum Loan Amount
(Conventional or FHA without MIP)
Examples:
÷
1,000 (estimated monthly payment)
X
58%
÷00537 the factor for 5% at 30 yrs
=
108,800 Maximum Base Loan x 101.75%=109,897 Ln Amt with MIP x.00537 = 590 principal and interest that is very close to 600 target
1,500 (estimated monthly payment)
X
62%
= 930 (projected P&I)
.00537 (Factor for 30 year loan at 5%)
= 173,184 (maximum loan amount) for Conv.
*Removes ins and tax from PITI=Monthly Principle and Interest
Payment Factors (Per $1,000)
To calculate the total monthly house payment, first divide the loan amount by $1,000 then multiply the resulting total by the P&I payment factor. For example, if you are planning to finance $120,000 with a 20-year mortgage term, take the following steps:
$120,000 ÷ 1,000 - $120.00
20-year loan @ 6.00% x 7.16 = P & I
7.16 P & I factor x $120.00 - $859.20
Total monthly payment for principal and interest would be approximately $859.20.
Interest Rate
15-Year Term ($/month per $1000)
20-Year Term
($/month per $1000)
30-Year Term
($/month per $1000)
2.00%
6.44
5.06
3.70
2.125%
6.49
5.12
3.76
2.250%
6.55
5.18
3.82
2.375%
6.61
5.24
3.95
2.625%
6.73
5.36
4.02
2.750%
6.79
5.42
4.08
2.875%
6.84
5.48
4.15
3.000%
6.90
5.54
4.22
3.125%
6.97
5.61
4.28
3.250%
7.03
5.67
4.35
3.375%
7.09
5.74
4.42
3.500%
7.15
5.80
4.49
3.625%
7.21
5.86
4.56
3.750%
7.27
5.93
4.63
3.875%
7.33
5.99
4.70
4.000%
7.40
6.06
4.77
4.125%
7.46
6.12
4.85
4.250%
7.52
6.19
4.92
4.375%
7.59
6.26
4.99
4.500%
7.65
6.33
5.07
4.625%
7.71
6.39
5.14
4.750%
7.78
6.46
5.22
4.875%
7.84
6.53
5.29
5.000%
7.91
6.60
5.37
5.125%
7.97
6.67
5.44
5.250%
8.04
6.74
5.52
5.375%
8.10
6.81
5.60
5.500%
8.17
6.88
5.68
5.625%
8.24
6.95
5.76
5.750%
8.30
7.02
5.85
5.875%
8.37
7.09
5.92
6.000%
8.44
7.16
6.00
6.125%
8.51
7.24
6.08
6.250%
8.57
7.31
6.16
6.375%
8.64
7.38
6.24
6.500%
8.71
7,46
6.32
6.625%
8.78
7.53
6.40
6.750%
8.85
7.60
6.49
6.857%
8.92
7.68
6.57
7.000%
8.99
7.75
6.65
7.125%
9.06
7.83
6.74
7.250%
9.13
7.90
6.82
7.375%
9.20
7.98
6.91
7.500%
9.27
8.06
6.99
7.625%
9.34
8.13
7.08
7.750%
9.41
8.21
7.16
7.875%
9.48
8.29
7.25
8.000%
9.56
8.36
7.34
8.125%
9.63
8.44
7.42
8.250%
9.7
8.52
7.51
8.375%
9.77
8.60
7.60
8.500%
9.85
8.68
7.69
8.625%
9.92
8.76
7.78
8.750%
9.99
8.84
7.87
8.875%
10.07
8.92
7.96
9.00%
10.14
9.00
8.05
9.125%
10.22
9.08
8.14
9.250%
10.29
9.16
8.23
9.375%
10.37
9.24
8.32
9.500%
10.45
9.32
8.41
9.625%
10.52
9.40
8.50
9.750%
10.59
9.49
8.59
9.875%
10.67
9.57
8.68
10.000%
10.75
9.65
8.78
10.125%
10.82
9.73
8.87
10.250%
10.90
9.82
8.96
10.375%
10.98
9.98
9.15
10.625%
11.13
10.07
9.24
10.750%
11.21
10.15
9.33
10.875%
11.29
10.24
9.43
11.000%
11.37
10.32
9.52
11.125%
11.44
10.41
9.62
11.250%
11.52
10.49
9.71
11.375%
11.60
10.58
9.81
11.500%
11.68
10.66
9.90
11.625%
11.76
10.75
10.00
11.750%
11.84
10.84
10.09
11.875%
11.92
10.92
10.19
12.000%
12.00
11.01
10.29
12.125%
12.08
11.10
10.38
12.250%
12.16
11.19
10.48
12.375%
12.24
11.27
10.58
12.500%
12.33
11.36
10.67
12.625%
12.41
11.45
10.77
12.750%
12.49
11.54
10.87
12.875%
12.57
11.63
10.96
13.000%
12.65
11.72
11.06
13.125%
12.73
11.80
11.16
13.250%
12.82
11.89
11.26
13.375%
12.90
11.98
11.36
13.500%
12.98
12.07
11.45