Mortgage Calculators, Interest Rates and Tax Rates

Need to know "how much" your payment will be? Use our "ultimate" mortgage calculators for use while shopping for real estate mortgages. You can use these for other types of loans, too (just divide the months by 12 and zero out the tax and insurance). Remember to only use these as a guide as they do not take the place of official "good faith" estimates.

Use the two mortgage calculators to compare two separate offers from lenders (for example, one with points and one without points).

The charts on the right of the calculators shows the national average of residential real estate interest rates currently being offered as well as representative annual real estate taxes from the Northern Virginia area expressed in dollars per $100. To calculate yearly tax, divide the asking price by 100, then multiply by the tax rate from the table. For example, a $500,000 home in Alexandria, would calculate this way ($500,000/100) * $0.845 would be $4,225. Don't forget that assessed value (not the asking price) is used for real estate tax rates! If you don't know the assessed value you can call or email us and we'll look it up for you; or use the asking price for a general idea. You are encouraged to use these assumptions in the calculators.

Remember, lots of things can affect assumptions. Try out several different scenarios and have fun!

More Rate Information is Shown Below!

A Word About Credit Reports and FICO Scores

A good, clean credit report and credit score is vital for obtaining a mortgage. Here are some resources that allow you to check out how you stand in today's credit world.

The Fair and Accurate Credit Transactions Act, (FACTA) was passed to help consumers with their credit and help prevent identity theft. It requires all three major credit reporting agencies (Experian, Equifax, and TransUnion) to provide every consumer with one free credit report per year. The credit reporting services have implemented FACTA at www.annualcreditreport.com to give consumers one free credit report per year.

FICO scores are a relative measure of your credit score using an algorithm developed by a company called Fair Isaac Corporation. The FICO score takes into consideration several factors, including punctuality of payments, amount of debt, debt composition, length of credit history, types of credit used, and amount of credit obtained recently. There is only one true FICO score and it is not reported directly by the three credit reporting services. The services make their own adjustments to the raw FICO score. A true FICO score may be obtained from Fair Isaac Corporation at www.myfico.com. This is a pay service, but check the site for specials.

Some Tips for Getting the Best Home Mortgage

• Check your credit to be sure it is accurate. Dispute any inaccuracies by visiting the credit reporting agencies on the web.
• Keep your credit situation stable until settlement -- this is very important because approval letters are only valid if your credit situation doesn't change!
  • Don't make a major purchase before your home purchase! That new car, draperies, furniture, etc. should wait until after settlement.
  • Stay at your current job. Switching jobs can affect your credit score ... wait until after settlement, if at all possible.
  • Do not apply for new credit before settlement, even if you are not planning to use it. This will reduce your FICO score.
• Pay your bills on time. Not doing so severely reduces your FICO score.
• Have a down payment. The days of "zero financing" are essentially over. 5% is a good down payment, but the more the better.
• Shop lenders and read the fine print!