Realtor mortgage calculator

[Standrea]

Can someone please please, please explain to me how this works?

DH and I are in the process of buying a new home. We went on the realtor mortgage calculator online, and put in all the figures, including figuring the highest interest rate (well above what we have). We even included our taxes and insurance into the figures. How come it came back on the calculator about $400-$500 less then what we were given by the bank? :eek:
That's alot of money. Alot more then we were anticipating.

Any ideas?

[jennylou]

Probably interest rates.

[SweetRed]

Does the calculator allow you to adjust the term of the mortgage? For example, if you have a 20-year mortgage, but the calculator is set to 30 years, that will obviously make a big difference.

[Standrea]

I have it set to a 30 year term (which we have) and to the interest rate that we were given. We do not have PMI, so that's not the issue, either.

[villanelle75]

It shouldn't make anywhere near that much of a difference, but did the bank include loan origination fees, closing costs, etc., in the total loan amount?

Also, are you sure you calculated your taxes correctly and added them to the monthly payments?

One more thing...are you certain your numbers are for a 30 yr fixed, as opposed to some kind of IO or hybrid loan?

[Hello Kitty]

I would make sure that the bank's figures have accurate taxes and insurance in them.

Also, if you are not putting 20% down, you likely have ain 80/10/10 or something like that. It's not financed like 90/10, though.

I'm looking at mortgages too, and I know the spreadsheet I have is off from the bank for those reasons. The biggest one is the loan structure.

[Standrea]

We have an 80/20. The reason we did this was because we are selling our house AFTER we move into the new one, so that way we will be able to put the money we earn on the old house to pay off the 20% loan.
I'm positive the taxes were added in correctly. And, insurance has been added in yet. That doesn't get done until the day before we close.

This is the calculator I used. (http://http://mortgages.interest.com/content/calculators/monthly-payment.asp) (those are not my figures in there). We even put our current mortgage in with everything and it's much lower then what we normally pay.

[Hello Kitty]

That online calculator is correct against the amortization table I use. I don't know what is in the figures your bank gave you - you could always ask. But something is obviously off.

[off2skl]

Ours was off by $300 too. Some of it may be escrow funds. I'm not sure, but our realtor said that those calculators are often off.

[Hello Kitty]

I would be really concerned if the mortgage only (no escrow, taxes, ins) amount does not tie out to that calculator. It's just math, it has to work, dangit! :p

[Standrea]

You know, maybe it is the escrow thing. Does it really add that much more on though???????

We have calls into a second and third mortgage firm right now. Just to see what kind of numbers they give us.

[SiValleySteph]

It worked fine for our mortgage, came back with the same ridiculously high monthly payment. :p

I would call up the bank and have them itemize the monthly payment.

We don't escrow, so we don't have anything added into our mortgage payment.

[Hello Kitty]

ABSOLUTELY have them itemize whatever payment they give you. The true, pure mortgage definitely should tie out to that calculator. If it doesn't, something is off - either the principal amount, the interest rate, or the term.

Taxes on our new house are $3500/year, insurance is probably another $300. Over 12 months, that's $316/month in addition to the mortgage payment. But I can very clearly take the mortgage + escrow payment the bank gave me, subtract out that $316, and get to that monthly payment given by the calculator.

[kindermom]

I found the calculator is pretty spot on as well. It was within about $50 for us.