Is there a way to figure out how much rent someone would have to pay on a certain loan amount ???
2006-09-04 09:14:20 · 15 answers · asked by mommy_2_little_man 2 in Business & Finance ➔ Renting & Real Estate
How can anyone afford a home that is $700 a month? What work do you all do?
2006-09-04 09:20:57 · update #1
WELL YOU ARE LOOKING AT BETWEEN 700.00 AND 850.00 DOLLARS. BUT IT REALLY DEPENDS ON YOUR CREDIT
2006-09-04 09:17:29 · answer #1 · answered by bellebeauty920 1 · 0⤊ 0⤋
I see a lot of good answers already so perhaps all I'm adding is the links to a couple of online loan calculators... I like Yahoo!Finances better, but I put two to try to be objective. Just fill in the blanks for loans and click the calculate button. You'll see your monthly payment.
The interest rate is the most important thing you can know. The principal, or total you borrow is the second most important. The down payment is the third most important. Here's some reasons why:
- For example, if you can earn more in a mutual fund account (8.5%) than you are charged for the loan (6.25%), take as long term as possible because you are earning 2.25% of interest on the money you didn't take out of the fund to pay down the loan. Otherwise you want to pay down the loan as soon as possible; take the shortest term you can afford with a margin of safety.
- The bigger the principal is the more the bank has at risk in one place. It is safer to sell two separate loans for $50K each than one for $100K. That may affect your interest rate offering as much as your stability of employment etc.
- The down payment is important and isn't obvious from the borrowers view. You'll get a better rate buying a $150K house with $50K down than you will buying a $100K house and $0K down. Seems that with each principal the same the loan interest should be too, but if the bank repo’s the $150K house they'll easily sell it for the remaining principal, but the other one may sell slow.
In general the less risky the loan, the lower the rate.
Also, the selling price of the house isn't the amount to be financed... You gotta’ add in everybody's cut. Realtors commission, lawyers money for opening/closing, first years property taxes, sales tax, and any other loose end that the bank's realtors and lawyers incur but refuse to pay for.
Hope this helps you chisel down the loan. ;-)
2006-09-04 10:07:20 · answer #2 · answered by wnymathguy 2 · 1⤊ 0⤋
There are vast differences in monthly payments, depending on the term of the loan, the down payment, the interest rate, and other factors. I could see the mortgage payment for a $100k house ranging anywhere from $400 to $1500 a month, depending on these factors. A typical payment would probably be about $700.
2006-09-04 09:17:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.
Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.
If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.
For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.
Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.
And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.
2006-09-04 18:49:32 · answer #4 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
If you have an actual listing, call the real estate agent who listed the property. They'll be able to give you a fixed amount because if someone else is paying the mortgage and will want a certain amount to cover it. I suppose a lot of it would determine how much the mortgage holder had left to pay off the house and how much profit they'll want.
2006-09-04 09:19:11 · answer #5 · answered by fla_dan 3 · 0⤊ 0⤋
Depends on the length of your loan (20 or 30 yr loan) and the percentage rate you lock in at. They are other factors too, such as PMI, which is an insurance and the escrow. Escrow usually goes up every year so your mortgage payment will go up every year. The best person to talk to is a real estate agent.
2006-09-04 09:18:46 · answer #6 · answered by camping_girl 4 · 2⤊ 0⤋
A little bit over a year ago I bought a house for around 115,000
I pay $867 plus all the utilities...right now interests are going up you should be expecting to pay at least a grand if you are lucky..if your credit is good you might as well get a better deal
2006-09-05 04:14:05 · answer #7 · answered by mj23 4 · 0⤊ 0⤋
Where I live a $100,000 home is around $800 to $900 a month.
2006-09-04 09:18:00 · answer #8 · answered by Anonymous · 0⤊ 0⤋
How are we able to pay $700. per month. By saving money.
2006-09-04 12:09:41 · answer #9 · answered by hirebookkeeper 6 · 0⤊ 0⤋
yeah their is, they have mortgage calculators online you can check out. It depends on interest rates and a few other things, escrow, taxes, length of loan, fixed or adjustable rate.....
2006-09-04 09:21:09 · answer #10 · answered by quikone2 3 · 0⤊ 0⤋
TALK TO THE LOAN COMPANY OR CREDIT UNION , ONES THAT GIVE YOU HOME LOANS AND ASK THEM. YOU CAN EVEN BE PRE APPROVED, THAT SAVES A LOT OF TIME WHEN YOUR GETTING YOUR HOUSE.
2006-09-04 09:18:03 · answer #11 · answered by Anonymous · 0⤊ 0⤋