A housing issue?

Question

My husband and I are having to get a house, and we don't have enough money to put down on the house. So we plan on getting 100% financing can someone tell me what this will do to us. What kind of mortgage should we expect it's a $175,000 house and I was wondering how much monthly the mortgage payment should be if we get a 30 year mortgage. We should be paying 20% down but we don't have $30,000 to pay. We both have excellent credit. Also how much does utilities run on a house, it's two floors and we have electricity and gas, then of course water, sewage and trash to pay. Someone please give us an idea of what kind of situation we will be in.

Answer 1

I can actually tell you exactly what to expect! I feel so useful now!

We just purchased a house at 6% for 30 years with 0 down and the house is worth around $175,000. We pay $1440 each month in mortgage and insurance and such.

There are a LOT of programs out there for first time buyers that offer 100% financing. Just prepare to put down $1000 or so of ernest money when you make an offer, and MAKE SURE to include in the contract that the sellers pay for closing costs.

We pay $23.00 in the summer each month for gas, around $60 each month for sewage/water/trash and recycling, and the electric can vary. We budget around $200-$300 though, depending on how much we need to use it. When it is over 100 degrees outside, we can expect a $300 one though.

And if they have ANY pets, make sure to include that the pets are to leave the house BEFORE your walk-through. Our sellers had a dog and after we did our final walk-through, guess what? The dog peed on the floor and there was nothing we could do about it.

Answer 2

The someone needs to be a local mortgage broker or REALTOR! not the people who are guessing here and not taking into consideration the wide variety of tax rates and insurance rates and square footage and R value of the insulation! that have to be calculated into the formula. I agree ask the last owner for the utility bills or call the companies yourself and ask for a copy of the last years bills so that you can plan at the same time they may have programs that help-like an averaging program so that you can always pay the exact same amount. The square footage of your house will make a difference too! Mine is 3833 and I have a workshop out back in the summer my power bills can go over $500. Get what's real and save your self the worry. Even getting the bills from the power companies may not be real enough. What if you are great at always turning off the lights and keeping the thermostat set to 78 and they set it at 65 all summer and grew their own garden inside all year long with sunlamps?

Answer 3

In Texas a rule of thumb on a 30 year mortgage right now would be that if you include the principle and interest and escrow for the property taxes and insurance in the house payment then it will be about 1% of what you owe. SO that would be about $1750 a month in your case if your insurance and taxes are about what they are here in Texas.

Gosh we have hot summers and high electric rates so our house that is one story and about 2400 sq ft that was built in 1968 with an old AC runs up an August electric bill of about $255. In the winter the electric goes down to about $50 and the gas goes up to about $150. Our water, sewage and trash run about $50 a month. I don't think any of this will probably mean anything to you though.

The best thing would be to ask the seller to share their last years bills with you.

Answer 4

It is a complicated question.

1. 100% finance means no down payment. Usually, more down payment equals low risk. So the lender may charge you a higher interest rate (use APR to compare, this includes all the cost associating with the loan). Other than interest rate, there is also additional insurance because the if is less than 20% down. Meaning your total loan cost will be higher then a 80% finance.

2. Go to www.ditech.com to find out your monthly P&I (principle, interest). Roughly, if it is a 7% loan (today) you pay 7% times 175000 = $12250 per year or $1020 per month. But there are other fees!!

3. The above only covers interest. With some principal (they call it amortization), you are looking at about $1200 to $1300 per month.

4. There are other fees such as property tax = $150 per month. May be other Mortgage insurance of $100 to $150. May be home owner fees. There are closing cost of a few thousands (one time).

5. So....estimate $1500 to $1700 per month with closing cost of $5000.

This will you a rough idea. If you want to be safe, add $200 per month to the numbers above. Ultility can be $200 per month including sewage. Your interests are income tax deductible. So you may save some money on your income tax depends on your tax bracket.

As people always say, check with your accounts and get a loan officer to give you a quote (no charge for that, but they may stalk you for awhile to get your business).

Hope this helps.

Ex-loan officer

Answer 5

I live in kinda the same kind of house. I have a pool in the back yard so my water bills ran from 150-200 dollars. If you dont have a pool then its going to be around 75.00. The mortgage will be around 1,200 dollars. Thats pretty good price with good credit. But the utility that out-wieghs everything is the electric bill. I remember my bill one time was 500 dollars A big house needs alot of lights and lights cost money. So with good credit you are looking to spend about......2,000 a month total.......maybe 2,200. Thats pretty good on a 175K house.

Answer 6

Well to add to your mortgage fees which are dependent upon your interest rate is your taxes which can be heavy again depends on where you live school taxes etc. Utilities depend on type of heat and are variable dependent upon how you use them. Too many variables without enough information or specifics . 100% loans are getting very scarce stay away from any variable rate loan unless you want to end up joining the multitudes in foreclosure, because rates are rising and worth is declining.

Answer 7

there are all kinds of mortgage plans available with down payments as low as 3% - zero down will be tough to get anymore with the subprime mess - talk to a mortgage broker

Answer 8

Very bad idea. Sacrifice, live with family, get a cheap apartment. You cannot afford to get a house now and will pay for it in the long-run.

Answer 9

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