I have been offered a 60K job in Sierra Vista, AZ. And my wife and I are having trouble figuring out how much home we can afford! Most online calculators are showing us from 120s all the way to 220s!!! We would like to stay within the in the 26%/33% or close to the rule of thumb when it comes to debt. We will be able to use a VA home loan, since I am prior military. We have approx. 10K to put down and have approx. $800.00 in school debt, cars payments, CC payments, etc. Any help on getting us a solid number would really be appreciated. Thanks in advance!
Jason
2007-02-18 11:05:39 · 4 answers · asked by jason_heffel 2 in Business & Finance ➔ Renting & Real Estate
With a VA loan you don't have to pay PMI correct? But a VA loan is not the way to go? That's interesting. Also we are thinking a 30 yr loan which is between 6.3 and 6.5 I believe. Does this help narrow it down at all?
2007-02-18 14:33:26 · update #1
So much of that is going to depend on your interest rates, property taxes, private mortgage insurance, and homeowners insurance. If you don't put down at least 20% you will have to carry private mortgage insurance (which is a load of crap because the only one it covers is the bank). 60K/year works out to 5K/month. After taxes you'll have less than 4K, so you should probably try to cap all the home expenses at about a grand. That probably means you're going to be a lot closer to 120K than 220K when shopping for a house.
For example: some friends of ours just put in a 90K offer on a house that's going to end up costing about $780 month with property taxes, PMI, homeowners insurance.
2007-02-18 11:17:40 · answer #1 · answered by Heather Y 7 · 0⤊ 0⤋
VA loans are about the worst loans on the market. You are better off going conventional if at all possible (You can do this if you have 10% down-you will have to pay PMI (private mortgage insurance) but its MUCH cheaper than the VA loan. FHA loans are also expensive-they tack insurance onto the loan and you end up paying interest on the insurance.
The house payment is going to differ depending on whether you go with a fixed or adjustable and how much you borrow etc. I think you should go to a mortgage company and ask them for Good Faith Estimates. the important thing is to not buy more than you can afford. remember the more you buy and the more you borrow the more money the real estate agent and loan officer are making.
Good luck.
2007-02-18 11:17:15 · answer #2 · answered by estudiando español 3 · 0⤊ 0⤋
It is impossible to be exact without more information, But here is an general guess. Your mortgage payment will be around $650 for every 100K you borrow. Taxes and insurance push this up to around $800. Since you make 5k per month your 33% payment would leave you 1666$. This is about 200k.
VA loans are great loans in that they give good interest rates, and often come with down payment assistance. The bad thing about them is that they are much more strict than other loans. You will generally qualify to purchase less than withother lenders.
If you went through another lender with interest only payments, you would probalbly qualify for 350K . Just ask your mortgage broker and he should be able to give you the ins and outs of each of the loans.
2007-02-18 11:22:26 · answer #3 · answered by Ron B 3 · 0⤊ 0⤋
http://www.dotheloan.com/RequiredIncomeCalc
this website will help you. If you need any help, just email me.
2007-02-18 14:15:33 · answer #4 · answered by celia s 1 · 0⤊ 0⤋