The most common mortgage term is 30 years. 15-year mortgages are also popular; if the buyer can afford the higher monthly payments, the loan will be paid off in half the time and much less interest will be paid over the life of the loan.
The interest rate initially shown on the form may or may not be realistic; check with a lender regarding the prevailing interest rate.
Down payments are usually 5%, 10%, or 20%, although some types of loans allow smaller down payments or even none at all. If the down payment is less than 20% you may have to pay for Private Mortgage Insurance (PMI) which will add to the monthly payment calculated here.
Property taxes are based on the appraised value of the home (not necessarily the same as the selling price) and include county tax and municipal tax, if applicable. Thus, the yearly amount will vary depending on the home value and the city or town in which the home is located. The amount initially shown on the form ($1741) is approximately correct for a $125,000 home located in the Chattanooga city limits, using 2002 tax rate information. Other towns in Hamilton County have lower municipal tax rates, and homes outside city/town limits pay only the county property tax. For example, the estimated 2003 taxes on the same $125,000 home in Signal Mountain are approximately $1472, while residents of unincorporated Hamilton County would pay approximately $957. Tax rates in other counties in Tennessee and Georgia are different; you may wish to contact the office of the tax assessor for the county of interest.
Insurance costs vary considerably depending on the insurance company, the location and value of the home, and the type of coverage selected. The amount initially shown on the form should be taken only as a very rough estimate.