What is the Mortgage for a 550,000 home?

Question

I have never lived in a home before and I am just curious

Answer 1

Too many variables to give you an accurate answer. Depends upon how much you put down and the interest rate. The interest rate will depend largely on your credit score and to a much lesser extent where you live in the US.

If you put down 20% and have "A+" credit (731 or better FICO) you may be able to get a 6.625% 30-year fixed rate. The down payment would be $110,000 and the P&I payment on a $440,000 mortgage would be $2,817.37. You'd also normally have to add property taxes and homeowner's insurance to that.

Answer 2

The payment? That is what I am assuming you mean. Generally you will pay (on an 8% rate) $4,036. You can use the online calculators for mortgages at http://www.bankrate.com/brm/calculators/mortgages.asp. This payment will be pretty close UNLESS, you get an option arm. You see it advertised by Quicken Loans as a Secure Advantage Loan. Different names, same animal. Anyway, it's not a good loan for most people, but individuals who have drastically fluctuating incomes may find it beneficial.

Here's the way it works (just so you don't get sold on the low payment) They will tell you that you will pay 1%-3% interest rate on this 550K and that will make your payments a low $1,820. Sounds great doesn't it! Unfortunatly, your rate will actually be 8% to 9%, or whatever you qualify for. BUT, you will pay that 1820 on the 1-3% for a few years. AFTER the first 3 to 5 years, it will completely amortize on the remainder of the term. So NOW you will not have that nice payment, but a wopping $5,700 because you are paying your true rate on a shorter term (by 3 to 5 years), PLUS instead of just having a 550K mortgage, you will have a 600K mortgage, because your low payments at the artificially low rates was not enough to cover the interest on your true rate of 8%.

I hope this saves some families.

Answer 3

That question cannot be answered without some more information, such as, what's the current mortgage rate for your area?
And also, whether or not you're required to make a down payment on it, -and if so, what percentage would need to be put down.

Answer 4

It all depends upon the rate that you qualify for. Rate is based upon tons of information including; how much you put down on a purchase, income, monthly debt, the state you're located, and the day to day real estate market.

If you would like more information on programs that may be avaiable to you, find out on:

http://www.internetmortgagepro.com

Answer 5

It depends on the loan.
A 30 year fix at 6.5% is $3476.37

Answer 6

With good credit - 3500/month principal and interest, 3000/month Interest only

Answer 7

thx for the answers, greatly appreciated!