I want to buy a house with a $500/month payment, what is the highest price house I can buy?

Question

I don't know how house payments are measured. Is a 30 year mortgage my only option? With taxes and insurance added, I would like to pay around $500 a month. What would that make my price range so I can start looking?

Answer 1

A $50,000, 30 year mortgage at 6% would run around $300 for principal and interest. Taxes vary a lot depending on where you live, but taxes and insurance would probably eat up most of the rest of the $500 a month you're shooting for.

Whatever you have for a down payment would add to that $50,000 to get the price of the house you could afford. But remember closing costs and prepays, which can end up a few thousand dollars to pay at closing.

A 30 year mortgage is probably your best bet. If you could find a mortgage for 40 years, at the same amount borrowed and interest rate, your payment would only go down about $25 a month.

Good luck.

Answer 2

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RE :I want to buy a house with a $500/month payment, what is the highest price house I can buy?
I don't know how house payments are measured. Is a 30 year mortgage my only option? With taxes and insurance added, I would like to pay around $500 a month. What would that make my price range so I can start looking?
2 following 22 answers

Answer 3

You can't calculate that unless you know how much you're putting for a downpayment and what interest rate you're borrowing at. Taxes & insurance, depends on the individual neighbourhood you're looking at etc.
I think 30 year is the longest term you can get, there are ones for fewer years but your rate/month will be higher. Over all you will end up paying more in interest with a 30 year but you'll pay less a month. The bank websites usually have a mortgage calculator that you can play with to figure out how much your monthly payments will be. Keep in mind that the rates they have posted on those sites are usually higher than what you can get if you shop around.

Answer 4

Mortgages can be as little as 10 years and as much as 50 years if the price warrants it. More importantly, how much do you have to put down on a home, how is your credit rating, do you have savings to show for at least the last 6 months, and what part of the country do you live in?

A very, very general answer would be a $90,000 home with a 30 year mortgage at 6% would give you a monthlypayment of $540. Six percent interest requires fairly good credit and a $90,000 home might be found in the southeast or midwest of the country. Keep saving if you live on either coast.

Answer 5

If you look up some foreclosed homes you will see that they are government repossessions and you can buy them for $1. After that you will end up paying anywhere from $350 to $500 per month for about 15 to 20 years before the house is paid off. Most foreclosures already have 10 to 15 years equity in them. So you end up paying for only 10 to 20 years for a house that is already got payments in it for the most part. It is cheaper and in the long run if you buy it and live in it for one year and one day you can sell it for it's real total worth. Good deal, huh?

Answer 6

House is the best investment on earth, but yes, don't get stretched financially to get there. One solution is to buy one that needs work and then find a person who is skilled but low cost to fix it up. You should be able to buy that at a bargain price. I have a guy who fixed up my disaster house for 1/3 the rate most places charge because he just loves that work and doesn't care about the money; they are out there. This way you can keep your payment down

Answer 7

you didn't say what kind of down payment you have. that's what matters the most. Most people put down 20%of the cost. for a 500.00 dollar a month mortgage you would have to have a lot of money to put down or be buying a house for about 20,000. Keep saving. you can co to some bank site and even some rel estates sites and they have calculator there. you put in the house price and the money down amount and how many years and it tells you the amount of the monthly payment

Answer 8

You need to find a mortgage calculator (online). Then you can mess around with different numbers, such as down payment amount, the interest rate on your loan, and the length of the loan. Those will all greatly affect how much your monthly payments will be.

I haven't tried the calculator below, but there are tons.

Answer 9

Depends on where you live. We just purchased a home
that has 1,600 sq. feet for only 65,000. Has a basement, main floor and 3 bedrooms up stairs with a 2nd. BR. Lotta house for so little.and a 21/2 car garage. Send me a email if you are in my area perhaps I can get help for you. We got our home with no money down and a no closing cost. Those you can have added into your mortgage.

Answer 10

Probably about 100,000 plus add about $200 a month for tax and insurance. There are many options but a 30 yr will usually give you the lowest payments.