Buying a new home.?

Question

Can anyone teach me how to figure what your payments on a home would be? It doesn't have to be specific numbers but I would like to get an idea while I am shopping around.

I want to do the math. By myself. I know how now but I anyone will post it on here you will get the right answer points. MATH NOT CALCULATOR

Answer 1

Just go to a yahoo search , and type in Mortgage Calculator

Also do the math for a 15 year fixed and a 30 year fixed , you will be surprised , 15 years on 90 grand is around 140 -160 grand , 30 years is near 250 grand ,

Once you find the calculator , do the math , do a 15 year fixed , and go no more than 20 - 25 % of your annual bring home pay ( NET) ,of course the lender will try to get you to do a 30 year variable with 35 % of your Gross , but the Agents do not care about you , they want all they can get , the more they get out of you the more they get , an agent is not your friend , if they were , and they cared there would not be so many in forclosure today , ....If you have the ability to come up with the cash do that you will save tons money , I just bought one it was selling for 130 grand , I offered them 65 grand cash and they took it , the more cash work you can do the better off you will be , and do not hold anything in escrow such as insurance and taxes , depending on where you buy , will determine the insurance rates , that is NOT calculated in with the mortgage , and do not let them pick your insurance ..pay for it own your own , if you do it through them you will pay more ,and it only protects them ,and their money , That is one reason for staying under 25% of your Net income , because there are other things that go into buying a home , If you listen to the agent and go 35% of your Gross income , by the time you add in Insurance , Taxes , and repairs , you will have over half your income devoted to the house , and even if you buy new , the house will start settling with in 5 years and will need repair , plus regular maintenance , and with in 15 years you will need over 10 grand for a new roof , even though you get a 25 years warranty on the shingles it does not cover high winds over 60mph , nor does it cover accelerated wear ,and tear from the elements.. and with the cheap materials , and half @ssed construction of many new homes there wioll be plenty more work needed in the first 15 years , and it does not stop....go no mopre than 25 % of you income and save 10% just for home maintenance you can save some of that and put the money as you get it in to 5 or 10 year cd's to make a little extra off your money . Good Luck , and Don't get Stuck . The morgage calculator I use is on Trumps real estate site . ( Donald Trump that is )

See what I mean , I just read MG thing , she said on a 150 something house her payments are 1200 for two years then 1000 from then on for thirty years , she is paying over 300 grand for a house that is worth maybe 100 - 125 grand , if they done it 15 year fixed she could have saved over a hundred grand " with perfect credit " You do not have to be smart to have credit , but it is wise to be smart with the credit , which they are not

Answer 2

Mike, it would be really diffucult to give you a blanket idea without knowing exactly what you qualify for. A couple of percentage points in the rate can make a huge difference in your monthly nut. Not to mention you need to take into account what your monthly property taxes and homeowners insurance will be.

Here is what I suggest. Start by setting up a budget that will allow you to live a decent existance but exclude any housing expenses. What ever you have left, deduct 20% and that would be a good gage of what you can comfortably afford monthly.

That seems like a long way around what others may tell you - (thak 35% of your gross as a housing payment) - I prefer my method because it takes into account your lifestyle before you factor housing.

One you have your payment use this formula. Every $9 you have towards a payment will get you $1,000 worth of house. This number will factor in your mortgage payment, taxes, insurances and utilities.

The formula is far from accurate but it will give you a good idea of the amount of house you should be looking at. Once you've found your comfort zone, contact a reputable mortgage banker and let him tell you what you qualify for.

With there tools in hand, find a Realtor and go shopping. Please remember, we would all love to live in a big, beautiful house, but we all can't afford one. One of the driving forces behind the credit crunch in the mortgage industry currently started with people buying way to much house.

Good Luck!

Answer 3

Your total payment will be the PITI (principal, interest, taxes and insurance) with, potentially, some adders for PMI (private mortgage insurance).

Look online for a good amortization program. That will tell you what the principal and interest (the PI of PITI) are for given combination of loan amount and interest rate.

You will be amazed at how small changes in the interest rate can really affect the payment.

That won't be all for your mortgage payment though. You have to figure in taxes and insurance (the TI of PITI). real estate taxes can vary from area to area. I have personally experienced anything from 0.5% of the value of the house to 4% of the value of the house per year. This can make a huge difference in monthly payment. The same goes for homeowners insurance.

If you are putting less than 20% down you will have either PMI or a second mortgage to cover the difference between your downpayment and 20% of the cost of the home. Either one of these can be significant.

Sorry it's so complicated, but it is what it is.

Answer 4

We just recently bought a new home a couple months ago, and when I was shopping around, I usually check all of our local agencies. On there sites, some of them had a mortgage calculator that figure your payments with interest. I just added a couple hundred for the taxes and insurance. That gave me a pretty good estimate on what I was going to be looking at to pay out.

Good Luck! Happy House hunting!

Answer 5

Go to www.realtor.com and click on calculators. It's under tools in the left hand column. The next screen will give you different calculators to choose from. There is one called mortgage calculator. Click on go to calculator. Then put in your information and it will tell you how much the monthly payment will be. The payment they give only covers principal and interest. If you have to pay PMI then it will be a little higher and if your mortgage includes taxes & insurance it will be a little higher. For taxes & insurance, figure approximately what those will be for a year and divide by 12 and add it to the amount the mortgage calculator came up with.

Answer 6

Look at http://www.mortgage-calc.com/

Find a mortgage calculator. Don't forget to add in Property Taxes and Home Owner's insurance. Figure a couple thousand dollars for closing costs as well.

Answer 7

I would contact a real estate agent or a mortgage broker at your bank and get pre approved, they will give you a good idea how much the loan will cost you a month. but just for a rough estimate we just bought a home for 152,000. we are first time home owners with excellent credit. we have a fixed rate 30yr for 6.25% our payment is 1200.00 or so a month. after 2 years it will drop -200.00 after the private mortgage insurance (PMI)is gone,(first time home owners). But I'd say check with the bank.