The home is 2Bed/2Bath, about 2500sf, build 1980's. Recent updates on roof and bathrooms. 2 car garage.It is sell by owner for 150k but negotiable. I want to propose 125k for the home for low fixed interst rate, but I don't konw how much the mortgage payment will be for 15 years,20 years or 30 years term?
2006-09-05 04:21:43 · 10 answers · asked by LYLL R 1 in Business & Finance ➔ Renting & Real Estate
Most real estate sells for 92-97% of asking price, depending upon the region of the country. Therefore, if the property is correctly priced, expect the owner to only accept an offer between $138K and $145K, without owner financing.
Mortgage companies determine your maximum available loan amount by the following equation:
Total Gross annual income X .28 = A
A x .80 =B
B Becomes the total annual payment for mortgage, taxes and insurance they will grant. Take this number, subtract the annual tax and insurance cost, then divide by 12. that will give you the monthly payment of the maximum mortgage. Then check an on-line amortization schedule and put in that number and the prevailing rate in your area and you will have the total $ amount.
For example you make $50k A year.
$50,000 x .8 = $40,000
$40,000 x .28 = $11,200
Annual taxes = $1200 and annual insurance = $500 total is $1700
11,200 - 1700 = $9500 annual, $792 monthly
$792 a month = 125,000 mortgage at 6.5% for 30 years.
2006-09-05 05:05:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on your credit, but the mortgage would be about 800 for a 30 yr fixed. BUT, there is a lot more in the monthly payment...insurance, taxes, etc. that could easily tack on an extra 500
2006-09-05 11:25:14 · answer #2 · answered by just browsin 6 · 0⤊ 0⤋
The monthly payment depends upon your credit score. If you pay your bills on time and you have very little debt you should be a good credit risk. If the owner agrees to 125K then you can check your payment at http://www.bankrate.com/ and go to mortgage calculators.
2006-09-05 11:30:39 · answer #3 · answered by Steve R 6 · 0⤊ 0⤋
Loan Amount-125000
Interest Rate - 6.25%
Loan term - 30yrs
Loan Payments - 769.65
Factor in your taxes (anywhere from 1000-1700 + divided by 12) and Insurance ( 300- 800 divided by 12) and you have your monthly payment.
2006-09-05 11:32:58 · answer #4 · answered by Tinnaaa 2 · 0⤊ 0⤋
Once you calculate that out, don't forget to factor in insurance.
I would also place in the contract that you can negate the offer if your home inspector finds problems with the home. A home inspector may cost you a couple hundred, but it can save you thousands if he spots a structural defect you don't know about.
2006-09-05 11:41:45 · answer #5 · answered by kids and cats 5 · 0⤊ 0⤋
It really depends on your credit and the lending institution you are going to use how much you but down, what the taxes are going to be annually. I would use a mortage caluator or call you banking institution and ask them they will be more than happy to help you.
2006-09-05 11:30:28 · answer #6 · answered by Anonymous · 0⤊ 0⤋
There are a bunch of mortgage calculators out there- here's one below.
2006-09-05 11:25:38 · answer #7 · answered by QandAGuy 3 · 0⤊ 0⤋
Go to realtor.com and use their calculator to get an estimate. Remember your individual credit, income and demographic in general can change that amount.
2006-09-05 11:25:55 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Do a web search for "mortgage calculator."
2006-09-05 11:24:02 · answer #9 · answered by Ray 2 · 0⤊ 0⤋
read tips on real estate and mortgages on this site
2006-09-05 11:30:50 · answer #10 · answered by Anonymous · 0⤊ 0⤋