we live in a smaller town of about 4500 so houses are not so outrageous here. we are looking in the price range of $60-80K. we have a good credit score, no car payments, small credit card payment, and regular bills. my husband makes around $1700 a month. What do you think?
also, our mortgage will be around $600+- a month but that's still not something i'm sure about. i use their calculators on the website, are they totally off?
2007-03-21 19:48:31 · 7 answers · asked by clclc 2 in Business & Finance ➔ Renting & Real Estate
my bad, our population is 64000
2007-03-21 19:49:53 · update #1
From the info you’ve given so far, I would definitely say that you most likely will have a lot of options to consider when financing a home. And a home in the 60k-80k range looks about right.
Don’t be afraid to use online mortgage calculators. They are a great place to start figuring out what you can afford, before contacting mortgage companies. Keep in mind that many calculators will only return your monthly mortgage amount. In reality, you’ll also have to add property tax, home owner’s insurance, and possibly private mortgage insurance (PMI). PMI is added if you don’t have the traditional 20% down when you apply for you mortgage. These expenses can add hundreds a month to your mortgage, so plan carefully.
And of course, you have to plan ahead for many homeowner related expenses such as utilities, repairs, etc. Make sure you add these to your monthly budget.
Also, have a good idea how long you are expecting to live in your home. This can help you decide whether a fixed rate or an adjustable rate mortgage may be best for you. If you plan on moving in less than 10 years, an adjustable rate mortgage may save you money. If you know this is the home you will stay in forever, most likely you should get a fixed-rate mortgage. But talk to a trusted mortgage professional. They will be able to give you a full financial analysis and let you know what loan suits your situation best.
Good luck with your hew home!
2007-03-23 01:58:47 · answer #1 · answered by Quicken Loans 5 · 0⤊ 0⤋
How much extra do you have a month? The actual household income matters less than how much you have left over after expenses; some people make a HUGE amount of money but live it up so much they still can't afford a house.
There are a variety of factors in play for how much your monthly payments will actually total. Mortgages usually run 30 to 40 years; obviously, the monthly payments for the same house with the same down payment will be lower for a 40 year mortgage than a 30 or 35 since the cost is being distributed over a longer period of time. The larger the down payment you make, the lower your payments will be too, since the mortgage will be covering a smaller amount of money. Having enough money saved for a down payment is a good first step to getting a place. If you want your monthlies to stay low, put down the largest down you can responsibly afford and refinance your mortgage to the longest time period you can wrangle. If you aren't sure what you can do, try to find out the price range for houses you'd be looking at and go see a loan officer for a consultation. Based on your income, assets, and credit score, they'll be able to give you a more solid estimate.
Good luck, and I hope this helps.
2007-03-22 03:01:51 · answer #2 · answered by melis 3 · 0⤊ 0⤋
The population is not nearly as important as the location. You might find a house in a rural location for that price; on the coasts, that would not even be a down payment. The mortgage calculators work just fine for the classical fully-amortizing mortgage; the mathematics is not complicated (if you are a computer). But there are many other mortgage products available; go to www.mlcc.com (the real estate lending arm of Merrill Lynch) to get an idea of what there is. What to do: Prepare a balance sheet (what you own, and what you owe) and an income statement (where it comes from, and where it goes), and take these to your friendly local banker. He will be able to tell you what you may be able to do. With that information, go to a realty web site (www.realtor.com is as good as any) and start shopping. When you have some possibles, go to www.zillow.com to check property values. Then you can go to a realtor, or work a deal yourself.
2007-03-22 02:59:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
the calculators are right only if you know the exact rate you qualify for. if you get a loan for 80k at a rate of 9% on a 30 year term the payment would be $643.70 and you said you have a good credit score, I'm sure you can get something better than that.
2007-03-22 03:18:47 · answer #4 · answered by josephcodner 2 · 0⤊ 0⤋
There is a method to finding this out... Like our mtg should be 1/3 of your income or something. So, that would put ou right around the right place! I say go house shopping, and stick within your budget! Not the high end, either. Been there, done that and it was very bad.
Good luck!
Andrea
www.mysoybox.org
2007-03-22 02:56:12 · answer #5 · answered by Andrea B 2 · 0⤊ 0⤋
If you are in Australia I would say not. Best to contact bank.
2007-03-22 02:54:01 · answer #6 · answered by holly 7 · 0⤊ 0⤋
u can get a good house, u should try to find out, dont stop
2007-03-22 02:52:39 · answer #7 · answered by mak 3 · 0⤊ 0⤋