I need some info about a first time home owner loan!!! pls help?

Question

need to know where a down payment is required, interest rate, and monthly payment. would appreciate any insight. thanks in advance!!

Answer 1

First things first. Make certain you can afford the mortgage on your home. Go to an online mortgage calculator and enter the price of the home you want. Enter the down payment (typically a minimum of $10,000 for every $100,000). This will give you the approximate payment for the principle balance on the loan ONLY!

Now, here are the monthly expences you HAVE to add to this payment that the calculator doesn't show:

1) about $150 a month for property insurance (mandatory)

2) about $200 for PMI (private mortgage insurance) if you put less than 20% as a down payment - this is insurance for the lender that protects them if you default on your loan.

3) Property taxes (mine is $400 a month based on a 160,000 property value in TX)

Your final expense is going to be closing costs. This is the result of title fees, realtor fees, loan origination fees and other lender related fees. (always ask the lender for a breakdown of fees they charge to avoid any fees that are not necessary)

A approximate closing cost amount for $100,000 is $3,000. This will be needed at closing along with your down payment.

If you have gone through these calculations and still feel you can afford a combined monthly payment of about $1600 then go for it.

3 ways to save money:

1)Ask your lender for an 80/20 loan. This is 2 mortgages, one for 80% and another shorter loan for 20%. This will keep you from having to pay PMI (private mortgage insurance). PMI is of no benefit to you, only your lender.

2) Shop around for a loan. Get the best interest rate you can find for your credit rating!! This will mean hundreds of dollars a month in savings. Also, when you shop around and have your credit rating pulled, do it all in a very short period of time (like one week), this way the rating damage will be minimal. It will be seen as one instance, rather than 5-7! (there is always a dip in your credit score after someone has pulled it, the more often it's pulled, the lower it goes.)

3)Consider a duplex or other multi-unit home for your first home. You can rent out the other side, contributing to a large portion of your mortgage! When you are financially ready for your second home, you will have the ability to rent out your half to apply toward your new home's mortgage... it really is the best advice I have as a homeowner, real estate investor and previous Realtor.

When in doubt, or if something doesn't seem right, ask ask ask!!!

Answer 2

As far as I know a down payment is never a requirement. Interest rates change daily so you wont know for sure until you are locked in although you can ask your lender for an average. Monthly payment depends on a lot of things, the total price the interest rate, the amount of home owners insurance the yearly property taxes and the chance that you may have to pay flood insurance. Try to find a real estate site with a mortgage calculator that includes a place for all of those things. Ask an insurance agent for averages for home owners insurance and flood insurance if its needed so you can give yourself a better idea of what kind of a payment you will be looking at, and remember if you dont have a down payment you have to pay mortgage insurance until 20% of your home is paid off, where I live that insurance is around sixty dollars a month added onto your mortgage payment.

For more help ask your real estate agent and lender, they can run some numbers for you anf give you a good idea of what you will pay, they can also give you important details like if your home is in an area that requires flood insurance.

Good luck I know it sounds like a lot but it isnt so bad once you get the hang of it.

Answer 3

Ok here's the thing. If you do not have atleast 10% to put down, it's probably best to do 100% financing with a seller's concession (covers closing fees).

Interest rates are at an all time low so it's best that you act now if you plan to own a home. If you have atleast 5 percent of the purchase price, you have the option to buy down the rate. If you're interest rate is 6% and you want it to be 5%, you'd basically have to pay 2% of the price of the home to get that rate down. So as a loan officer, I always advise my clients to spend there money wisely, and not to deplete their savings if they don't have atleast 10% (should be 20%) for a down payment or 5% if it's an FHA loan.

For more details please visit my website. You can also call me for a free consultation. My contact details are on my website.

Answer 4

You need to put a small binder down initially ($200-500).

The down payment varies between 3-5% that is due in a bank check at closing.

The interest charged depends on you credit standing and length of mortgage.

For $ 150K mortgage @ 6% the pymt would be $ 899
@ 6.5% it would be $ 948.10. added onto the mortgage amount would bethings like property taxes & Insurance.

Answer 5

Why don"t you approach a private lender?I got mine loan from a certain agency and i had really bad credit.Their interest rate of 0.2% is simply great..Why don"t you try there?
You can contact them with their email,[e-mail]

Answer 6

do a search for the housing finance agency in your state. they'll have all the info you need on any first-time buyer grants and subsidies you might qualify for, and can refer you to quality lenders that will assist you further.

Answer 7

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