|
|
| *Ostroff, Fair and Company>>>Renting & Real Estate |
What will my mortgage be if....? |
We buy a $450,000; I have a credit score of 700 and my husband of 750; we have a combined income of 60k; and we are buying the house in the suburbs of NYC (wantagh, in nassau county, Long Island). With all this in mind, approximately what will be our mortgage? Without a massive down payment it's not going to happen in this lifetime. To qualify you'd need about $200,000 down payment, maybe more if your debit-to-income ratio is out of whack. That depends on a few things. Do you have a bankruptcy? Are you putting any money down or are you looking for the highest amount you can get? Do you have any other bills that you are paying along with the mortgage? Do you have housing history whether it is rental or a previous mortgage the last 12 months? Is this your first home? I would talk with someone at a mortgage company or bank. You are not obligated to take the loan if you don't like the terms of it. Depends on the interest rate. Search for mortgage calculators, and it'll give you an idea. They take into account where you live, so taxes and insurance are also figured in. A $450K home is a bit much if you make a combined $60 per year. 10% down; you're still stuck with a $405,000 home. At 6%, you're looking at about $2,500 a month for your monthly payment alone. How much are property taxes in that area? In big cities in Texas, it's about 3% of appraised value of the home. Remember, even if you buy the house for $405K, it's still appraised at the very least $450K. Appraisals are always higher, so let's say it's appraised at $500K - at 3%, you're looking at another $1250 per month for taxes. You still need insurance---about another $100 a month at the least. so in total - $2500+$1250+$100=$3,850 per month for housing alone. You two make $5,000 per month gross, maybe $4,000 take home. Really, how are you going to eat? And the only thing that credit score is good for is to give you a lower interest rate. You're still out of your league with this expensive home. Unless you are putting down an ENORMOUS amount of money, there is absolutely No Way you can afford the monthly payment, which includes the mortgage amount, taxes and insurance. Just what dream-world do you live in, anyway? My realtor taught me that you can come up with an estimate of your total monthly payments by taking 10% of the total cost financed and using that number as your minimum payment. For example, in your case, buying a $450K house would make your monthly payments (everything included except utilities) approximately $4,500.00. Again, this is a very rough estimate. It seems like the both of you have great credit, but you never know what could happen. You might want to start working with a lender to get some options for financing. Also, first time home buyers can get several different types of down payment assisstance and government grants so be sure to look into that. Good luck and congratulations on this big step in your life! Assuming that you will buy the propertfy 100%, and find a lender that will do an 80/20. Here is an example at 6.5% interest rate in the 1st and 9% in the sencond: 1st loan amt = $360,000 @ 6.5% = $2,275 (fully amortization) $360,000 @ 6.5% = $1,950 (Interest only) 2nd loan amt = $90,000 @ 9% = $724 2,275+724 = $2,999 + property taxes + home onwer ins. Now, if you go 100% with one loan, this will be your mthly payments at 6.5%: $2,844 + property taxes + home onwer ins. + (Mortgage Ins), if not inlcuded in the rate. But I will recommend to talk to your lender or broker and find out with them... Hope this helped = ) Loan Processor |
| Tags |
| Canada Taxes Australia Taxes Small Business Renting & Real Estate Personal Finance Investing |
Finance Categories--Copyright/IP Policy--Contact Webmaster |