I need A site that will tell me how large a mortage I can afford without appling for a mortage?

Question

If I put in my down payment and approxiamately how much of a monthly payment I want, It will tell me what price range of home to look for.

Answer 1

Here is the rule lenders use to qualify you for a home: take 29% of your gross income and you have the potential house payment. Then take the same gross income times 39% and you have the potential total household debt allowed including the house payment, credit cards, child care, boat, student loans, spouse/child support, basically any debt that will not be paid in full in under 10 months.

To get the estimated price range house take $7.50 times each $1000.00 you will borrow and you'll get an estimated house payment to work with. Example: $7.50 X $100,000 = $750.00 payment, then add taxes and insurance. There will also be MIP (mortgage insurance premium) if FHA financed, so add about $40.00 monthly on a $100K loan to get a closer picture of the payment you may be looking at. This is not an exact payment, just a ball park.

Any bank will gladly provide you this and pre-qualify you at no cost until you are ready for pre-approval at which time you will incur some costs. By law all lenders are required to provide you with a "good faith estimate" (also referred to as a HUD1) upon making application for credit showing the estimated costs to apply and get the loan and the payment. Closing costs usually run about 3% of the loan amount, and prepaids include the appraisal, credit report, flood cert and first years home owner insurance. When you write the offer to buy, ask the seller to pay the closing and prepaid costs. Also pre-approval tells the seller you are ready to do a deal subject to the appraisal of the home and you reaching agreement. Offer a copy of the pre-approval upon acceptance of the offer. They will view you as serious.

Ask the lender to give you a crash course in financing and how it works. I do that with all my clients who buy homes with me. And on-line lenders (my experience) charge more fees than local lenders,. Be sure to ask up front if they have in-house underwriting. Beware if not as they will usually be more stringent on credit because they package it for an outside lender to approve. There are more potential for delays and declines as there are more people in the loan process. I call that "out-house" nder writing for a reason- it stinks!

A great real estate broker will best help you with the process and explain how loan work as well as the entire process. I can recommenmd brokers in your area if interested, just let me know how to have them contact you for an interview with you. I deal only with the top tier brokers, and so should you.

Answer 2

actually... a good rule of thumb is $100 for every $1,000 of home cost. So... if you have $750 a month for a mortgage payment you can generally afford a $75,000 home as long as you put about 10% down plus closing cost. This rule is pretty close and can certainly help you begin your search. There are many things that make up a mortgage that can scew this rule one way or the other.

1) Property Taxes - Some are very high, some are none
2) Insurance - Some places are cheap, some are outragous.
3) Credit Score - the worse your credit the higher the interest rate
4) PMI - Generally if you put down less than 20% you will have to pay this insurance premium that protects the banks investment should you default on the loan. This can be high or low depending upon amount down, credit score and total loan value.

But.. $100 for every $1,000 is still a good rule to use!

Good luck and I hope it helps!

Answer 3

Even Better, I tell you how to go through the math here:

http://www.danmelson.com/posts/1147464929.shtml

Qualification amounts are subject to rate changes, and assumptions about what type of loan you'll accept. Here's an article about the games that get played:

http://www.danmelson.com/posts/1147463725.shtml

Now wouldn't you really rather be able to do this yourself?

P.S. If you're looking for an online pre-qual, they're going to want to run your credit. Once they have you social, they can and usually will find you.

Answer 4

You should try LendingTree.Com. They have mortgage calculators on the website for everything! You can calculate how much you can afford, interest rates, down payments and everything else!

Answer 5

Try this website...it's got all kinds of mortgage calculators.


http://www.mortgage-calc.com/

Answer 6

Try www.bankrate.com