I am 31 and single with no children. right now i am renting an apartment which cost about 600 bucks a month. i am tierd of paying rent and would love to own a home. The thing is that is my credit is not real good. I am paying off my debt though on time. I was thinking about buying a little house, fixing it up and than in about 5 years selling it. There is a house in my town that the asking price is $115,000. They said the est amount to pay each month is around $750.00 I would have a co-signer. Since my credit is not so good, do you think the payments would be higher? thanks
2007-10-21 11:59:19 · 6 answers · asked by carriec 7 in Business & Finance ➔ Renting & Real Estate
You should try to get an FHA loan. Those loans are a lot more lenient with credit scores, and they provide a lower interest rate than conventional mortgages. They are also more lenient with income to debt ratios than a conventional loan.
2007-10-21 15:13:45 · answer #1 · answered by Olivia 3 · 0⤊ 0⤋
You won't know until you look into it. Depends entirely on the loan you get, the interest rate, and the amount of taxes and insurance you have to pay into escrow.
Remember that part of the monthly payment will build up your equity in the house. Now is a good time to buy because prices have declined. Get a good adviser to help you. Don't jump into it and find out later than you made a mistake. You should have the house inspected by an expert. Don't be afraid to make a lower offer.
2007-10-21 19:09:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your interest rate will be a tad bit higher. Realize though that there are many expenses involved with a house besides paying a mortgage. I recently lived in an apartment after being a homeowner for 18 years. I loved it!
2007-10-21 19:16:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Depends on the taxes and insurance. You know you can buy a home fix it up and every two years sell it. All of the profit realized from the sale is tax free after two years!
2007-10-21 19:52:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I doubt payments would be higher, but it depends on the tax and insurance rates in your area. You can always play around calculating taxes and insurance plus mortgage payments at the site below... Look under the mortgage calculators section.
2007-10-21 20:20:24 · answer #5 · answered by rukidden99 3 · 0⤊ 0⤋
You only know after you request a pre-qualification letter ( free )
From a couple of lenders ( your bank , credit union etc ) .
We have NO way of knowing .
Ask the people who know , your bank .
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2007-10-21 19:04:54 · answer #6 · answered by kate 7 · 0⤊ 0⤋