Mortgage Calculator: Traditional Mortgage or TruePath Mortgage
Interested in buying your first home, but can’t afford a down payment? While traditional mortgages typically require a down payment, there are other options to help you get your dream home, including the TruePath mortgage through TCHFH Lending, Inc.
Use our mortgage calculator below to estimate your monthly mortgage payment and how it might compare to a traditional mortgage. And you don’t need to pay a deposit at all!
TruePath Mortgage is available through TCHFH Lending, Inc., a wholly owned subsidiary of Twin Cities Habitat for Humanity. TruePath Mortgage is designed to help first-time homebuyers secure a home they love with a mortgage payment they can afford.
It is a perfect option for low- and moderate-income homebuyers in the Twin Cities seven-county metropolitan area. And that mortgage can be used on a home built by Habitat for Humanity or a home you find on the open real estate market. To access the TruePath mortgage, you must also participate in the Twin Cities Habitat for Humanity program. Homeownership Program, which offers training and support to prepare you to become a homeowner.
TruePath Mortgage Details
A TruePath mortgage has many financial benefits, including:
- 2.0% fixed interest rate, 2.0426% APR *
- 30-year term
- Monthly affordable housing payment set at 30% of household income
- No mortgage insurance
- Maximum mortgage of 96.5% of home value – down payment and affordability assistance available based on income and availability
This is NOT an offer for a rate foreclosure deal. The calculator is a tool to help you estimate your mortgage and does not guarantee the interest rate, eligibility or availability of assistance.
Try our mortgage calculator
Understanding our calculator
There are a few important things to understand about the calculator:
- This calculator does not determine the actual amount of your mortgage.
- This does not guarantee that Habitat can contribute the total amount of aid indicated.
- To qualify for a Habitat mortgage, you must meet all income and other underwriting criteria.
- Even if your affordability indicates that you can afford more, a purchase with a Habitat mortgage would be limited to our maximum loan amount.
What can you afford?
The TruePath Mortgage product is designed to keep your affordable home payment at 30% of your gross monthly income. As a general rule, you shouldn’t buy a house that requires you to have a monthly payment greater than 30% of your monthly income.
Many people will qualify for a larger loan and this can be tempting. But sticking to a monthly payment of 30% or less of your income will help pay for your other regular expenses. It will also help you prepare for unforeseen expenses.
Our calculator generates an estimate of what you could afford based on your income. The calculation is based on the following criteria:
- Interest rate (2% fixed)
- Mortgage term (30 years)
- Escrow of property tax (1.5% of the wanted the price of the house, spread over 12 months)
- Home insurance escrow (0.69% of the price of the desired accommodation, spread over 12 months)
- Contribution to the maintenance fund of $ 50 per personuh month
- Maximum monthly payment set at 30% of your income
- The calculated APR is based on the first mortgage and the estimated interest rate. Actual APR may vary.
Are you eligible?
To qualify for a TruePath mortgage, you must meet a few application conditions. Applicants must:
- Complete the Habitat Home Ownership Program: This prepares you for the responsibilities of home ownership.
- Follow income eligibility guidelines and other financial guidelines such as credit score, debt, employment, and bankruptcy.
- First-time home buyer: Cannot have owned a home in the past three years.
- Currently live in the seven-county Twin Cities metropolitan area and have lived there for at least one consecutive year.
- Buy a primary residence: The mortgage must be for a house in which you plan to live.
Find out if you qualify
Interested in taking the next step to homeownership? Complete the Habitat Homeownership Eligibility Questionnaire to find out if you qualify.
Whether you find a loan from TCHFH Lending, Inc. or another lender, take the time to understand the financial requirements and think about how much you are comfortable spending. This will put you on the right path to finding the right loan for you.
* For example, on a $ 200,000, 30-year fixed rate loan at 2.0% APR with no down payment, your monthly payment would be $ 743.51 and the APR would be 2. 0426%. The monthly payment amount does not include amounts for home insurance premiums, property taxes, or the maintenance fund, all of which must be paid in addition to the principal and interest on your mortgage.