How Much Can You Afford and what is the ‘affordability factor?

February 22, 2008 at 8:46 pm 2 comments


Use the following to chart to determine your monthly principal and interest payments at various interest rates for either a 15 or 30-year term.

Interest Rate Factors Per $1,000
Interest
Rates
Term
15 Years
Term
30 Years
Interest
Rate
Term15 Years Term
30 Years
4 7.40 4.77 8 9.56 7.34
4 ¼ 7.52 4.92 8 ¼ 9.70 7.51
4 ½ 7.65 5.07 8 ½ 9.85 7.69
4 ¾ 7.78 5.22 8 ¾ 9.99 7.87
5 7.91 5.37 9 10.14 8.05
5 ¼ 8.04 5.52 9 ¼ 10.29 8.23
5 ½ 8.17 5.68 9 ½ 10.44 8.41
5 ¾ 8.30 5.84 9 ¾ 10.59 8.59
6 8.44 6.00 10 10.75 8.77
6 ¼ 8.57 6.16 10 ¼ 10.90 8.96
6 ½ 8.71 6.32 10 ½ 11.05 9.15
6 ¾ 8.85 6.48 10 ¾ 11.21 9.33
7 8.99 6.65 11 11.36 9.52
7 ¼ 9.13 6.82 11 ¼ 11.52 9.71
7 ½ 9.27 6.99 11 ½ 11.68 9.90
7 ¾ 9.41 7.16 11 ¾ 11.84 10.09

1. Find the appropriate interest rate from the chart above.
2. Look across the column to the appropriate term to determine your interest rate factor.
3. Multiply the interest rate factor by your loan amount in $1,000s.

An Example

Interest Rate = 6 ½Desired term = 15 yearsInterest rate factor per $1,000 = 8.71Mortgage = $200,000Monthly Principal & Interest = $1,742 (8.71 x 200)

Add your monthly insurance premium and your property tax to your principal and interest to determine your total monthly payment.

This information is provided as a guide. It is strongly recommend that you contact your mortgage specialist for a thorough personalized mortgage assessment.

 

 

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2013-2015. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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Entry filed under: Austin, Smart Buyers, Smart Real Estate. Tags: , , , , , .

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2 Comments Add your own

  • 1. Mike Harmon  |  February 22, 2008 at 8:52 pm

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Mike Harmon

    Reply
  • 2. Joe Di  |  March 21, 2008 at 11:44 pm

    Oh! Great job!
    Very interesting and helpful post.
    I add your interesting blog in my iGoogle page!
    We’ll expect many new interesting posts from you 😉

    Reply

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© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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