i dont know if i can come up with an down payment , but after food and car payment i have about 2k to invest into a house. is this ideal to invest into a home. i figure if i start young i can save for bigger things when i am older
2006-12-21 07:39:38 · 14 answers · asked by SCott N 1 in Business & Finance ➔ Investing
Do you mean that you have 2k a month after car payment and food?
A $175,000 mortgage at 5.75% for 30 years would be about $1020 a month. Add about $100 a month for taxes and about $175 a month for utilities. And $20 a month for insurance. Maybe $100 a month for maintenance. That will be your out of pocket cost. Can you afford that? That will leave you $585 a month for everything else.
2006-12-21 07:56:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Maybe.
Go to a loan officer and get pre-qualified. You say that after your car and food you feel you have 2k to invest toward a house. The amount of payment you actually qualify for will depend on several things.
ROUGHLY - Take your total gross monthly income (before taxes, before car payment, before food) Now multiply that by about 30% (remember I said "roughly") NOW take out your car payment, student loan payments, alimony, child support, minimum due on each credit card. The result is the amount the mortgage company feels you have available for a house payment. The house payment must include Principal and Interest on the loan and one-twelfth of the annual taxes and insurance, and about 1/12 of 1% of the loan amount for PMI.
If that's enough for a house where you live, then the answer is Yes, you can purchase a home.
2006-12-21 15:55:12 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋
The key number is 36%.
Take your total income, multiply that by .36. If you make $3,000 per month then the number would be $1,080. Then subtract your credit card and car payments. Let's guess that would put you at $700 per month.
You could qualify for a house payment with a total payment (mortgage plus taxes & insurance) of under $700.
Save your money. Build up a reserve of $10,000 before you buy a house. In fact don't use the 10K for the home. Keep it as an emergency fund. -GL
2006-12-21 16:17:43 · answer #3 · answered by MR MONEY 3 · 1⤊ 0⤋
Talk to a loan officer, to figure out what you qualify for. You probably have a good shot at qualifying for a mortgage. There are programs out there for $0 money down for first time homeowners. Keep your $2000 to put in for the unexpected purchases. Good Faith $500 (min.), Closing costs, plus moving expenses, paint, carpet, cleaning etc. that you may want to put into the house before you move in.
Find a reputiable real estate agent, mortgage person & title company, by talking to people that have purchased homes in your area.
A house is usually worth the money.
Make sure that your payment won't be more than what you are already paying for rent. That is why there are a lot of people going into foreclosure right now.
Count property taxes & association (condos/townhomes) into your monthly payment as well!!!!
Good luck & have fun house hunting!
2006-12-21 15:47:34 · answer #4 · answered by Jo 6 · 0⤊ 0⤋
It is great that you are asking these questions at such a young age....
I would suggest you save for the next 5 years atleast $5000 per year....You will put yourself into a position that many people do not see ever. Now you will have $25,000 to put down on a nice home.....
With approx. $2000 a month you could buy a house around $250,000 including taxes and insurance...
It also depends where in US you are, what rate you get for the 30 year fixed loan....
This is what i did and now I own 3 houses....
I bought the 1st one at 27, and I saved for 5 years....
good luck
2006-12-21 16:36:58 · answer #5 · answered by James 3 · 0⤊ 0⤋
of course! but don't try to buy a mini-mansion starting out...and don't fall for a sucker deal i.e. an adjustable rate mortgage which means lower payments now but if interest rates rise much then your payments go up astronomically........so shop for as low a FIXED rate as you can....call up the banks and ask like you would the price of coffee.
because of the trap of 'adjustable rate mortgages', many will be losing their homes in the future.....
if you have to buy now, do it......but at some point down the road there will be some awesome deals on the market as the housing bubble busts.
and don't buy a mobile home!
2006-12-22 04:55:00 · answer #6 · answered by Sizzle Pizzle 3 · 0⤊ 0⤋
Yes. With $2000 disposable income per month, you can easily afford a house. Look in the yellow pages under mortgage brokers, and sit down with one to figure out your financial game plan and to put together a preapproval so you can grab the right house when it comes along. Good luck!
2006-12-21 15:42:26 · answer #7 · answered by Stuart 7 · 0⤊ 0⤋
There are many opportunities out there through most states for first time home buyers with great interest rates. I'd look into these before talking to a broker which will cost you lot more in fees, etc.
Also be sure to shop around and get to know about mortgages before jumping in to one.
2006-12-21 15:52:05 · answer #8 · answered by keithshere 2 · 0⤊ 0⤋
Don't bite off more than you can chew, consider that in addition to the house you'll have utilities, taxes, insurance, etc...now if you "could" find someone willing to finance it, and find a couple roomates you might be on to something! Buying a house (depending on location) can be a great investment, but if you go in unprepared it can take years to recover from it!
2006-12-21 15:46:04 · answer #9 · answered by John W 2 · 0⤊ 0⤋
of course, and these days you don't even need a down payment and can get into a home with no money down! Of course it is tact to your loan in some way, but if you go to a new home builder you get incentives and that covers your down payment which does not get tact on. There are all sorts of ways to get a home even if you didn't have that 2000.00.
2006-12-21 15:42:53 · answer #10 · answered by S.F 2 · 0⤊ 0⤋