Realtors??Can anyone calculate monthly payment for Alabama housing?

Question

I want to purchase a house later this year or beginning of next year. My credit score will probably be around 580 by then. How much do you think I would pay a month for at least a 80,000 house? Help?

Including insurance.

Answer 1

Realtors are not a Mortgage Broker or a Bank. They can give you an estimate, but there are many factors to consider by a Lender. Job time (2 years), 2 years W's, 1 month pay stub's, your Debit to income ratio. These are what lenders look at. If you do not have credit - than alternative credit can be added, to qualify you.

As far as a mortgage calculator (type) mortgage calculator in yahoo and it will take you to many many sites. (or you can check out my site, for calculator's and other helpful information.


What you need to consider is the following if you are looking to purchase.

Lenders look at the middle score to qualify a person - With a 580 or higher you can get a 100 percent loan. If your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. This is a estimate only - ok -


If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok)

Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are a lot of factors involved.

With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....


Go to these websites

http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

ALSO -
When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

NOW TO ANSWER YOUR QUESTION. A 80,000 LOAN (1 LOAN AND NOT A 80/20) WOULD BE 587.01 A MONTH BASED ON A 8 PERCENT RATE. THE RATE WOULD BE HIGHER, OK. TAXES AND INSURANCE ADD ANOTHER 100.00 TO YOUR PAYMENT - THAT IS A GOOD ESTIMATE THAT I DO ON MY CLIENTS. SO YOUR PAYMENT WOULD BE 687.01 A MONTH.


Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.

Answer 2

That will depend upon the interest rates in effect at the time. Nor is a 580 score going to get the best rates, even if you have a substantial down payment.

My guess is that you'll be looking at high 7s- call it 7.75 - for the first 80 percent, somewhere around 10.5 for the rest.

$459 (rounding up) on $64,000
$146 on $16000
$605 for the loans. Not an insurance person, and nowhere near Alabama. Will guess $80/month for insurance
Have no idea about property taxes.

Answer 3

You can call a mortgage broker to find out. They will be able to tell you around what interest rate you will be able to get.(Be prepared for a high interest loan) And they will also be able to help you with finding out if it is even possible to get financing at all. Tell the broker you would like more information and a rough idea but that you DO NOT want your credit ran just yet.

If I had to take a guess I would say around $700 per month.But again it just depends on the interest rate you can get. With your score you will probably only qualify for a sub-prime loan(higher interest because of risk)

Good Luck!

Answer 4

I am not a realtor but, if you go to say; prudential.com, homes for sale in Alabama, most of the time they have a window were you can calculate how much your payment will be. they even have percentage rates. Pretty cool. you don't have to fill anything out so they wont bug you. Use any major realtor company.
Good Luck

Answer 5

your looking at a monthly payment between 500 and 580.