Questions on mortgage?

Question

hi there me a my fiencee are in the process of purchesing our first home. We just started our seach today and we are meeting with the bank next week. My question is do you think he will think he will laugh at us when we say we want a 900 month mortgage. Does this sound too low or is it normal?

Answer 1

It depends on what your interest rate and the loan amount. also where you live. and where you want to live. their is so many types of loan out their that you would be surprised. Also your credit score is very important. that determines your rate. also how much are you putting down and don't forget closings cost.
Ask all the following question on how much they are going to charge you and always ask for your score it will give you and idea of what rate you might get. be care full on the prepay and MI that adds up to your payment. Hope that helps. Have any more question you are welcome to ask. I was in the business of mortgage for a while. An could answer some of your question.

Answer 2

Your request sounds reasonable. However it depends on the cost of homes in the area you live, the cost of living there etc. The best advice I can give you is to get PRE-APPROVED by a Equal Housing Lender such as a Bank or Credit Union for the best rates available. Do NOT sign any contracts tell the Home Mortgage Consultant thay you merely want to get Pre-Approved for a Mortgage Loan. This will give you the piece of mind of knowing how much of a home you can both afford and for what cost (Monthly Mortgage Ammount?). Home ownership is the American dream and you are making a good decision with a real estate investment. GOOD LUCK! :-)

Answer 3

Standard mortgages are 10/15/20/30/50 years. That's 120, 180, 240, 360, and 600 months. I don't think anyone will lend you for 900 months (75 years).

If you need lower payments, you can do an interest only loan, but you'll basically be renting the property from the bank (or praying for the property to increase in value enough to sell for a profit).

Answer 4

No that is perfectly fine. You can tell them that and they will give you a lobe accordingly. The amount you tell them, will allow them to tell you what they can afford to give you... By the way congratulations on getting out of renting to make someone else rich! My hubby and I just bought a condo 2 weeks ago.. so I think I can help you. Look into the buy down program. It was the best for us. It means that you pay for the interest for I think 3 years and get them to pay for the closing costs, then you will have lower payments to make yearly for the rest of the contracted 30 yrs commitment. But you don't want to live in this property for the rest of your life becasue you will pay double if you stay.. sell it when you think you will make money on it and then get a better loan.. This loan is the best for us at the present time. When we sell- the more money you have to put down- the better your loan will be and the less the bank will take advantage of you. But if you are working paycheck to pay check like us, it is the best option going at the moment.. Ask the bank also if there are any programs going like the HUD or anything that you might be interested in.. Just be aware though.. HUD sounds cool.. but they stick you into neibourhoods that are not so good. If you can deal with gun shots at night (according to a fellow teacher) then it is OK.. personally that doesn't work for me.. It's not worth my life just to try to turn around a bad neighborhood with "professionals" around. Anyhow, hope this helps.. Email me anytime if you have questions more than this.. and my husband can lead yo to the right answer better than I can as he dealt with the bank more than I have..

Answer 5

How much do you make a month? What is your NET and GROSS pay?

Also, what are your debts?

How's your credit?

Those are all going to play an important part.

Also, what is your down payment? What do you have for closing costs?

$900 is do-able. We're at $900/month for a $170K mortgage, but we also make about $50K/year and had $10K for closing costs.

Don't go in expecting people to tell you what you want to hear. We didn't expect to be able to afford more than $150, but we could have gone up to $200K!

Also, don't let yourself get too far ahead. Your lender wants to make money. You will be given a top of your range. Don't do it unless you can afford to max out. If you can afford a $900/month + $100/month for insurance + $200/month for taxes + utilities + groceries + extras + debts, then great. Do NOT get ahead of yourself. Foreclosure is an option that is far too real.

Answer 6

It depends on where your looking. Some places you can get a home with payments that low. The bottom line is lets figure out where you want to be in say 5 years. This isnt your dream home I am sure however you can use it as a stepping stone. Congrats on your engagement if you need help I am available and LIc. in 50 states.

Answer 7

Most mortgages are 36-48 year mortgages, since most people don't live or work much longer than that after buying a house. A 900-month mortgage would be a 75-year mortgage. Not totally impossible, but expect a big laugh.

Answer 8

900 months works out to 75 years. I think 30 years is more normal. You should educate yourself on the different types of mortgages available. If you Google the words "mortgage calulators" you will be able to enter your salary and downpayment, and estimate what you can afford.

Answer 9

No...everybody's needs are different. Houses are very expensive and you may need to start out with a small starter home, which would get you a monthly mortgage in the ballpark you are looking at.
good luck.

Answer 10

It all depends on where you live. In Hawaii, that would be too low.

That's roughly a 90K mortgage depending on the program you use.

Call a mortgage broker like Countrywide, they have over 255 loan programs.