How to use the Calculator

Using this Calculator should be considered only as a guide to obtaining a loan. If this guide states that you do not qualify, don't be alarmed. Let us review the numbers and circumstances with you. We have available a variety of loan programs that allow us to work within standard loan qualification limitations. Please call us at (703) 750-3300 or at (800) 999-1924 if you have any problem or question while using this calculator.

Qualifying

The Loan Calculator qualifies you on the proposed loan, not your current loan. If more than one person will be signing for the loan, sum up the income, savings, and monthly debts of all borrowers. You need to add up your income on an annual basis. Use the simple calculator provided if you need to figure based on hourly, salary, bonuses, etc... Hourly - multiply hourly times 40 (full-time), then multiply by 52 (weeks in a year). For self-employed borrowers, you will most likely need to average your last two years income based on your tax returns.

1. Fill in your income (gross pre-tax income, not take-home pay) and total monthly debts. Do not use commas. The calculator will interpret 10,000 as $10.

2. Enter your annual income. Use the simple calculator provided to calculate based on hourly, salary, contract, dividends, etc...

3. Monthly debt payments include payments for revolving debts only, such as student loans, car loans, mandatory child support, and credit card payments. This does not include car insurance, electric and phone bills, food, etc.. However, do not count a credit card payment if you simply pay off your balance each month without owing interest. Do not count payments that continue for less than 10 months. Your current housing expenses (rent or mortgage payment) should not be included as debt.

Proposed Loan.

For the interest rate, you may either accept the default value or type in your own value. However, the calculator will not produce reliable results if you use a rate on a 15-year loan or on a one-year ARM. Programs like a one-year ARM and six-month ARM usually qualify at 2% over the start rate.

1. The Loan Calculator will automatically calculate qualifying ratios, graph or chart principal and interest over the term of the loan, and display and chart the total savings in interest, as compared to the current loan.

2. The Proposed Loan section also charts, graphs, and calculates savings for prepayments. Prepayments can be calculated in both monthly and lump-sum, with starting and ending dates for the prepay. For example, you may begin prepaying $10 a month on the first month, and end the $10 a month on the 50th month. The display should then read 1/50 in the begin/end section.

The default interest rate is used to illustrate proper input format. This is not an offer to lend.

Existing Loan.

You may chose to enter existing Loan information which will compare savings of principal and interest both on a graph as well as numerical display. The monthly savings is also calculated.

Prequalifying.

The Front End ratio is a calculation of the proposed PITI (principal, interest, taxes, and insurance) divided by monthly income. Make sure to input Taxes and Insurance in the Existing Loan~ section as a yearly factor for accurate ratios. The Back End ratio is a borrowers total monthly obligations divided by monthly income. Do not include debt which will be paid off in the loan or have less than 10 months of pay remaining. Qualifying ratios vary per lender, and compensating factors such as cash reserves, loan-to-value, and underwriter opinions may allow higher ratios than specified. The ratios are NOT preset - you may adjust them to your lenders guidelines.

Graphing and Charting.

The Loan Calculator has the ability to graph or chart your principal and interest payments for both the existing and proposed loans. The graph is shown in terms of time and money. The chart is a pie chart displaying the amount of interest, principal, and prepayment that equals to the sum of all payments made over the term of the proposed loan.

Amortization Table.

The amortization table is displayed below The Loan Calculator in a window that is printable from your browser. Options include monthly and annual tables. The Amortization Graph selection graphs the proportion of principal and interest applied to the payment each month.

Preferences.

The Loan Calculator is fully user-defined and customizable. You may calculate monthly payments or choose to select a bi-weekly payment plan. Options also include settings for maximum and minimum loan amounts.