My brother and his wife detest their home and always have. They admit getting it was a big mistake because they were being ultra- conservative. I'm sorry for them because I love my home and think people should. They probably have quite a bit of equity in their home and have found a new home they love that costs about $350K. Brother is worried to move forward on this thinking the monthly payments would be too high, even though I think he'd qualify. With my amateur calculations, I think he could afford to put $100K down on this $350K home, so there would be a mortage balance in the neighborhood of $250K. With a fixed interest rate for a 30 year loan, what would the monthly house payment be? He's frozen right now so I thought I'd offer him some estimate because he won't ask a realtor at the moment. He's a little vague, but I'm pretty sure he grosses about $5K a month. His wife's a stay-at-home mom. Thanks much.
2006-12-10 11:56:18 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
While it is difficult to estimate what the payment would be because it all depends on his credit score & profile, I can give you some interest rate & monthly payments amounts.
A realtor cannot determine the interest rate, only your mortgage lender can do that. Keep in mind there are a ton of lenders out there; mortgage brokers, banks, credit unions, and investors. Ask for referrals from people you know, ask realtors you know & trust, and talk to bankers to make sure you are well informed.
He needs to find out what his score is from getting a tri-merge credit report (his mortgage lender can pull this as part of the loan origination process) and then he will know rates he can qualify for. Check out www.bankrate.com for current mortgage rates.
At amount financed of $250k: Principal & Interest only...
@ 6.00% payment of $1,498.88
@ 6.50% payment of $1,580.17
@ 7.00% payment of $1,663.26
@ 7.50% payment of $1,748.04
@ 8.00% payment of $1,834.41
Good luck and good hunting!
2006-12-10 12:15:33 · answer #1 · answered by $$Cypher 2 · 0⤊ 0⤋
Going rates on a 30 year fixed are about 5.625% today. So he'd have a payment of $1440.
Property taxes and insurance can vary widely by region, but I'd assume another $350-400/mo. combined.
$1800-1850/mo. is about 35-38% of his $5000 monthly income. That should be fine, if he doesn't have much other debt. But if they have a car loan or two, it might start getting tight.
They could always pay off some debt and finance more on the home to hold their overall budget in line.
2006-12-10 12:10:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
According to normal calculations your housing payment should not be more than 28% of your gross income. At 5K that would make the payment max about 1400.
According to the calculator at www.mortgage-calc.com the payment on a 30 year 6% mortgage would be closer to 1500. He may be able to find financing for it, but usually you should live in a home that's no more than 2.5x your annual salary if you want to save and invest aggressively. He's already well above that mark.
2006-12-10 12:05:51 · answer #3 · answered by traciatim 3 · 0⤊ 0⤋
Where about does he live?
we bought a home for $200,000 with nothing down and we are paying $1400 a month....We have a fixed rate for the first 2 years..then we will refinance with the equity that we will have....if that makes sense...(the house is a fixer upper..it could have sold for $349,999). That is what it was appraised at for the location...
Can they rent it...? and use the rent money to pay off the mortgage they already have? Then look into the other house?
He should ask the realator....there are different types of loans out there....anything is worth a shot!
2006-12-10 12:50:46 · answer #4 · answered by sleddinginthesnow 4 · 0⤊ 0⤋
It's be approximately $1,540 before taxes, insurance and private mortg insurance. Good Luck! Say, $1,800 per month as long as this is below 25% of his gross income, he should be ok
2006-12-10 12:00:39 · answer #5 · answered by SmartAce 3 · 0⤊ 0⤋
1000 to 1500 a month or so, depending on terms and credit rating
another 400 a month for taxes
2006-12-10 12:00:17 · answer #6 · answered by kurticus1024 7 · 0⤊ 2⤋
Great point, I'm interested to know more too
2016-07-28 05:45:04 · answer #7 · answered by ? 3 · 0⤊ 0⤋
It depends..
2016-09-20 11:53:10 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Hurrah, that's what I was exploring for! Thanks to author of this question.
2016-08-23 12:35:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋