my husband and I make about $52,000 a year have good credit, and we're not severally in debt. We are looking at home that is around $90,000. We can probably put about 5-7% down, and property taxes are around $2000/year. Should we have a problem getting a loan, and does anyone know how much a monthly payment would be including property taxes and insurance.
2007-01-26 14:57:38 · 5 answers · asked by glassflower 4 in Business & Finance ➔ Renting & Real Estate
I live in Ohio, both of our credit scores are over 700.
2007-01-26 15:13:27 · update #1
1st question: should you have a problem getting a mortgage? not if you have good credit...there are many, many lenders that will lend you more than what you can pay back.
Let's do some "rule of thumb" estimates on the information you gave:
You make $52,000/yr. The best lenders (w/ lowest rates) will let you put 30% of your income into a mortgage (assuming you don't have much for other loans..cars, credit cards, student loan, etc). So at 30% = $15,600/yr. = $1300/mo.
At the current intrest rates, with taxes, mortgage and insurance a very conservative (high) estimate of your monthly payment (w/ a 30-year fixed-rate loan), is 1%. So a $90,000 = $900/mo.
Make sure you shop around for your mortgage (including fees you'll have to pay), and tailor it to how long you plan on being in your house.
Also definately go with a 80/15/5 (1st mortgage = 80%, 2nd = 15% [at a significantly higher intrest rate than the 1st mortgage, but it's still cheaper than paying PMI], and put 5% down....you'll probably have a ton of fees when you close -- so save that 2% for it..and you can pre-pay some of the 2nd mortgage if you have any left).
2007-01-26 15:14:03 · answer #1 · answered by contemplating 5 · 0⤊ 0⤋
As a licensed mortgage loan officer in Ohio, I can confidently say "no" you won't have a problem. I help people that are much worse off than you.
Payment-wise, you'll probably be in the $700-800 a month range depending on your taxes and insurance.
2007-01-26 23:25:24 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Three very useful tools below. Also, 5% down is good, 10% is better as it gets you out of mortgage insurance which is a waste of money. For rental property I usualy do a 30 yr and 15 yr mortgage and use the 15 year to meet the 10% to avoid the MI - then you focus on buying won the 15 year. Either way you should be good with 5% but break the 10% barrier as quisk as possible or it is simply money wasted
1. http://www.bankofamerica.com/modular/financenter.cfm?calcid=home17
2. http://www.bankofamerica.com/modular/financenter.cfm?calcid=home01
3. http://www.bankofamerica.com/modular/financenter.cfm?calcid=home02
2007-01-26 23:17:14 · answer #3 · answered by Jerry 1 · 0⤊ 0⤋
I bought a 108,000 house when we were both making about 55k. We put 0% down.
It all depnds on credit and debt ratio.Do you have collection accounts on your credit report? If so, take care of them. A lender will not give you a loan without a clean credit report.
2007-01-26 23:07:31 · answer #4 · answered by Chris B 3 · 0⤊ 1⤋
no you shouldn't it depends what state you are in. state's like kansas or wyoming it is easy to get. but if you live in states like new york or california it takes alot of paperwork
2007-01-26 23:06:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋