We've been in our existing home ten years, and have built up some equity.
2006-11-07 10:36:49 · 6 answers · asked by movielovingirl 3 in Home & Garden ➔ Other - Home & Garden
Simple....
The worst case scenario, is to plan on your mortgage payment to be 1% of the house's price. For example, $500,000, worst case scenario, with $0 down about $5000 a month just for the mortgage. Since you say you have equity built up in your house, go to http://www.zillow.com/ and look up your house, and see what you MAY get for your house, then figure out how much you owe on your house and taa daa the difference = equity. Of course you probably already knew that. Now that you know how much you have to work with for a dwon payment, now you can look at the houses you probably want to look at and not the ones you can afford. So, lets say you find a house thats 500K, and you put 100K down, now your actual price tag is 400K, and now, in a worse case scenario, your new mortgage is $4000. But, if you guys have good credit, theres no reason you cant it to between 2500 and 3500 based on a 400K mortgage.
2006-11-07 10:46:38 · answer #1 · answered by jeff the drunk 6 · 1⤊ 0⤋
The rule of thumb for a mortgage used to be a selling price of about two and a half times your yearly salary.
If you figure out how much money will be left after you sell your house subtract that number from the price of a house you are looking at. Then think of the rest of the price as what you need to pay for in the mortgage. Look on the Internet for a Mortgage Amount Calculator and see how what you would pay each month.
Don't forget closing costs, utilities, insurance, house repairs, and new furniture needed.
2006-11-07 18:48:57 · answer #2 · answered by Rich Z 7 · 0⤊ 0⤋
Go to a bank. I assume you are going to finance your new home with a mortgage. Before a real estate agent will sign a contract with you, they're going to want to see a "Statement of Pre-Approved Mortgage Lending Amount" from your bank or loaning institution. This will tell you your buying power.
2006-11-07 18:44:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I think I heard somewhere that you shouldn't spend more than 20% of your income on payments. A real estate agent could definitely help.
2006-11-07 18:41:18 · answer #4 · answered by Jennifer G 2 · 0⤊ 0⤋
based on credit scores and money in bank account and equity
2006-11-07 18:39:34 · answer #5 · answered by veronica s 1 · 0⤊ 0⤋
i would suggest you get your current house appraised and then find out how much you can sell it for and then find out if you need and can get some extra money from a loan and then go to a realitor and they will help you find somthing in your price range
2006-11-07 18:40:21 · answer #6 · answered by eblack1017 2 · 0⤊ 0⤋