Loan Scenario Variables
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- Home Value: The selling price of the home
- Down Payment: The amount the buyer has saved and is willing to invest in the property upfront. The average Down Payment is around 10%, though the benchmark is 20% to relax PMI requirements. This amount may be as low as 0% to 3% depending on the type of loan and First Time Home Buyer status.
- Loan Amount: Typically, the Home Value minus the Down Payment
- Interest Rate: The annual percentage rate (APR) charged on the loan
- Loan Term: The length of the loan in years. Typically 30 years for most US residential loans
- Property Tax: Annual Property Tax payment
- PMI: Private Mortgage Insurance or Property Mortgage Insurance (Typically between 0.5% and 1.3%, though Not Required if a 20% Down Payment is made). Conventional Home Loans
- Home Insurance: Annual cost of Home Insurance
- Monthly HOA: Monthly dues for being part of a Homeowners Association
