I really really want to understand the house mortgage thing. say i bought a house for $200,000 and i paid down

Question

payment of $20,000. Since i took this $180,000 loan from bank and my credit score is good, how much i have to pay per month if i want to pay my loan in 20 yrs . how much minimum i have to pay in these condition. Thanks in advance

Answer 1

With decent credit and income and a low debt to income ratio; $180K financed for 20 years with say 6.5% interest rate, your payment amount for principal and interest would be $1342.03 and to that you would have to add home owners insurance (which depends on the area where the house is) and property taxs (city, state,local)
Also you would need to consider if this is in a Home Owners Association and what that will cost you per month or quarter.
Also call the electric company and get an estimate of what that bill will be as well as sewer, water, trash, cable, phone, and anything else that will become a monthly expense while living there.
And then consider how much it will cost you to drive to/from work everyday.
All of this SHOULD give you a ballpark to know what the REAL cost of owning the house is.
But you are not done yet. Also look into the population in your area. Are people moving in or out? Are jobs being added or taken away? These are factors that will also give you and idea of IF you buy the house and live in it for 5 years( most people move every 7 years) what the possible resell amount for the house will be. This is the part that most buyers NEVER think about and you will NEVER know the true benifit or cost of "buying" until the house is sold and you look at ALL your costs of "owning: from a AFTER tax, AFTER sold point of view.

Answer 2

Do not go by the figure put out by the first respondent. Yahoo's calculator estimates property taxes, which vary wildly from state to state. Use the calculator for the other figures, and ascertain on your own what the annual property taxes will be on the house you intend to purchase. Divide that by twelve and add the result to your calculated monthly payment.

Answer 3

If you got good credit, your bank can finance you with a good interest rate. Using the calculator in http://www.realestate.yahoo.com/calculators/
I get the following numbers.

For 180000 loan for 20 year mortgage,
5% rate you pay $1187.90 per month &$10510 total interest
6% rate $1289.60 per month and $129500 total inerest
7% rate $1395.54 per month and $154929 total interest
You can get numbers for any other rate, by using the web site above.

Answer 4

initiate figuring out to purchase! assurance expenditures can selection very much counting on your deductible, assurance on different platforms, and so forth. maximum books i've got study on money administration propose you get a very extreme deductible then placed that quantity in an funding account the place you could income interest. That way in case you DO have a tragedy on your place you're purely paying the costs of pulling out your money, no longer the finished deductible. in case you do no longer, seem in any respect that $$ you made. (in case you do not have the $5000 after making the down value on your place nevertheless bypass with the extreme deductible and set money aside each and each month for the deductible funding account). Your taxes would be based on the previous year's taxes and divided by employing 12 (in case you escrow the loan corporation will take one million/12th out each and each month and pay the taxes whilst they are due, in case you do no longer escrow you ought to nevertheless be placing that quantity aside each and each month!)... you could call your interior reach (county or city counting on what state you survive you are going to be able to could desire to call the two) tax place of work to be sure the cost of taxes on the cost selection of residences you opt for to purchase. additionally ask them whilst the final evaluation became and the way in many instances they be sure taxes. this could help you to be responsive to how lots you would be paying originally and whilst it may bypass up.

Answer 5

Total monthly payment (including taxes, insurance, and PMI) $1,692.93 Thats using the national avg. rate of 6.2% if you have good good credit like you say u do, if not the rate will be higher