Understanding Your Results

Purpose: This calculator provides an estimated monthly payment and closing costs based on the information you entered and common assumptions for FHA purchase loans. For accurate, personalized quotes based on your full profile and goals, explore our ClearPath™ application process, designed to give you flexible options and complete transparency.

Interest Rate: The default rate used is an example, it's not an advertisement for available rates. Your actual interest rate depends on market conditions, your credit score, down payment, loan term, and other factors upon qualification. Visit our Mortgage Factors Explained Insights article to learn more about what impacts your rate or request a quote.

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Points: Points are upfront fees paid at closing, typically used to lower your interest rate. Learn all about Origination Points in our Understanding Mortgage Points article. 

Taxes and Insurance: Property taxes and homeowners insurance are estimated based on the state, property usage and home price. Second homes and investment properties carry higher property tax rates as they don’t qualify for the homestead exemption. These are averages and can vary significantly by specific location, property, and coverage choices. 

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USDA Upfront Guarantee Fee: USDA requires an Upfront Guarantee Fee (currently 1% of the base loan amount). This fee is typically financed into your Total Loan Amount and is included in this estimate.

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USDA Annual Guarantee Fee: USDA also has an ongoing Annual Fee (currently 0.35% of the average annual outstanding principal balance), which is paid in monthly installments and included in your payment breakdown. This fee functions similarly to mortgage insurance.

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Closing Day of Month: This determines how much prepaid interest you'll owe at closing based on your loan scenario. Prepaid interest covers the daily interest from your closing date through the end of that month, since your first mortgage payment isn’t due until the second month after closing. Prepaid Interest = Daily Interest × Number of Days Remaining in Month After Closing.

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Housing Expense Ratio: Equals total monthly payment / income. Also known as the Front-End Ratio. Ratios highlighted in red (e.g., > 32%) may indicate challenges in qualifying for the USDA loan program. The total Front-End Ratio allowed for USDA loans can vary based on your overall credit profile but is generally around 29-32%. 

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Debt-to-Income (DTI) Ratio: Equals total monthly payment + monthly liabilities / income. Also known as the Back-End Ratio. Ratios highlighted in red (e.g., > 44%) may indicate challenges in qualifying for the USDA loan program. The total Back-End Ratio allowed for USDA loans can vary based on your overall credit profile but is generally around 41-44%.

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Estimated Closing Costs: These figures are estimates provided for educational and informational purposes only and do not necessarily reflect the actual offerings, rates, or terms available through Murray Mortgage Solutions. While we try to make our calculators as accurate as possible, actual costs may vary. 

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