I live in Oklahoma. My husband and I are in the process of purchasing a home. We are purchasing a house for 79k on a 30 year loan. We are receiving a 10k grant from the Cherokee Nation. I wish someone would make me understand why on earth our payments are going to be $650 a month! That seems like a lot, why is it so much? Our interest rate is about 6%. It just doesn't add up to me.
2007-05-29 08:51:24 · 8 answers · asked by Trina O 3 in Business & Finance ➔ Renting & Real Estate
$69,000 financed at 6.00% is only $413.69 per month.
You probably have mortgage insurance of about 0.5%/year (payable monthly), for another roughly $30/mo.
Property taxes, no idea what they look like in OK. Then you've got your homeowner's insurance to pay for.
If your "payment" is $650, and includes the above, that's fine. We always qualify on your total housing payment, including the above items. So hopefully that's what you're hearing, and it just wasn't explained well.
When in doubt, ask your lender. Make them show you on paper so you understand completely where the money is going.
2007-05-29 10:05:04 · answer #1 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
If you were able to get a $10k grabt form Cherokke Nation, then your loan amount will be $69k. With a 6 % interest rate, this should give you a monthly mortgage of only $413.69 principal and interest for 30 years. I guess the difference of what you are paying now incudes the home insurance and your real estate tax which they termed it as impunded.
2007-05-29 16:09:23 · answer #2 · answered by tenfour_ph 1 · 0⤊ 0⤋
The payment you are quoting probably includes the amount necessary for property tax and insurance escrows. The principal and interest on $79,000 at 6% on a 30 years fixed ratre loan is $473.64 so if 1/12 of your property tax payment and 1/12 of your fire insurance estimate total about $176 per month that's probably about right.
Ask you loan officer to explain it to you and keep asking quesitons until you understand it.
If you get the run around and need a second opinion, get the exact loan amount or a copy of the Good Faith Estimate and call me toll free at 800 971-4638 and I'll check it out for you.
2007-05-29 16:01:51 · answer #3 · answered by mazziatplay 5 · 0⤊ 1⤋
Taxes and insurance are local variables that always increase your monthly payments. Typically, your bank will escrow both of these (save them up and pay them for you) once or twice a year.
If you were considered a higher than normal risk for a loan, you may also be paying "Mortgage Insurance" -- but it's not likely with $10K down on $79K.
Your mortgage broker should have explained each of the amounts that feature in your total monthly payment. Check your paperwork, or give them a call if you're unsure.
2007-05-29 15:59:52 · answer #4 · answered by C Anderson 5 · 0⤊ 1⤋
Your monthly payment for principal and interest on a $69,000 loan at 6% for thirty years is $413.69. Expect the lender to require you to escrow 1/12 of the annual property tax and insurance on the property as part of each payment. Not knowing your property tax rate or your insurance costs, I cannot speak to that portion of your payment, but my guess is that is what the difference represents.
2007-05-29 16:01:02 · answer #5 · answered by acermill 7 · 0⤊ 1⤋
A 30 year fixed loan on $79K financed, should run about $475/month. The difference could be points, insurance, taxes, etc. In any event, you should be contacting your mortgage company and asking them the question.
2007-05-29 15:58:16 · answer #6 · answered by James V 2 · 0⤊ 1⤋
Does Oklahoma have high property taxes, or is your insurance higher than normal. These two thing play a big role in monthly payments. Check i out.
2007-05-29 15:58:33 · answer #7 · answered by JoshuaCaleb 1 · 0⤊ 1⤋
PMI insurance can add AT LEAST $100.00 a month...depending on the amount financed.
2007-05-29 16:02:03 · answer #8 · answered by Ferne 2 · 0⤊ 1⤋