I am looking at to buy my first home at the $100K to $120K range. I will not have the 20% down so I will have to pay PMI. About how much will my total payment (tax, insurance, pmi, and payement) be a month? Taxes are about 1000 a year and insurance is not to high (like in FL or other coastal parts) - I'm in Oklahoma.
2007-03-07 04:28:41 · 5 answers · asked by sooners83 4 in Business & Finance ➔ Renting & Real Estate
Good news is, more than likely you wil not have to worry about paying PMI unless you take 1 loan at 100% LTV. The best way to take a loan if you are a fthb, is too break it up into an 80/20. Breaking it up into two loans avoids PMI and will also lower your payment depending upon rate. When purchasing a home at 100% it is vey credit sensitive. Almost all of the subprime companies have changed their guidlines when qulaifying for 100%. If you have a least a 680 fico score you should have no problem.
With a purchase price of $120,000 you would be looking at a payment of around $671 for the first mortgage (rate 7.5%) depending upon credit and a payment of around $237 for the second mortgage (rate 11.5%) These will not be completly accurate becasue everybody's situation is different.
The total payment with taxes and insurance would be about $1041. That payment is PITI, with $1000 for taxes and $600 for insurance. Again, all of this really depends upon income, documented or stated, and fico score.
Any questions go ahead and shoot me an email, I would be happy to assist you with any more questions.
2007-03-07 04:58:22 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Okay, if you qualify for a conforming product, you can easily get a 6% rate. Now, you mentioned PMI. For 100% financing, depending on the coverage required based on your Fannie Mae findings, you could be paying quite a bit for your PMI. Good news is, there is Lender Paid MI, or LPMI, where the lender bumps your rate by about three to five-eights of a percent, and they pay the MI instead of you. Saves you a fair amount of money every month. LPMI is usually based on credit score, though, so it depends on where you are there. There are also banks that will accept lower MI coverage levels in exchange for a rate bump. That will save you money if you don't qualify for LPMI. But at 6.5% and $120k with LPMI, your payment would be about $845 before you add your hazard insurance premium.
2007-03-07 05:59:52 · answer #2 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
on a 30 year mortgage a good rule of thumb is to figure your payment at 1% of the total loan amount. This will take into consideration taxes and insurances. It will give you a pretty good estimate of your payment.
100,000 loan will be around 1000 per month.
You can save a little every month by not escrowing your taxes and insurance however you will have to pay them in full when the bill comes. So if you don't budget your money well, you'll be putting insurance and taxes on credit cars which is a recipe for disaster.
2007-03-07 04:42:31 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you are going 10% down you will probably be looking at payments somewhere around 800 a month. But then you will have to add property tax and insurance. So you will end up around 1000 when all is said and done.
2007-03-07 04:51:17 · answer #4 · answered by Anonymous · 1⤊ 0⤋
i haven't seen a loan with PMI in the last 7 years. Your loan officer will either break your financing into 2 loans, or give you a slightly higher rate called "lender paid mi".
try one of these calculators to estimate your payments, http://www.choicefinance.net/calculators/
2007-03-07 06:08:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋