I have heard that house mortgages are a lot cheaper in smaller cities... is that true? and it so, how much do?

Question

you pay a month and how much is your house worth? Also, where are you located? thanks :).

Answer 1

I think you're really asking about housing prices. Interest rates vary by state, not city, and the rate/cost tradeoffs are all within a quarter percent or so, mostly to reflect how restrictive of lenders a given state is, and how expensive it is to operate there (regulatory costs, mostly).

There is no magic wand on mortgages. On the other hand, if the property only costs you $50k, not $500k, that's where your savings comes in. On the other hand, the reasons why some cities are that expensive is because those cities are where all the high paying jobs are, and where everyone wants to live. There's some cities in the midwest where minimum wage earners can buy a modern house in excellent condition. Or cities like Detroit, where something like 30% of all properties are abandoned because the auto industry has been in decline these last thirty years. The catch is: Can you be happy there? Can you get a job that pays enough?

Check realtor.com for asking prices on housing in any area that appeals to you.

Oh, and NEVER BUY A HOUSE OR CHOOSE A LOAN BASED UPON PAYMENT. Here's why:

http://www.danmelson.com/2007/03/option-arm-and-pick-a-pay-nega.html

Answer 2

Mortgages are not always cheaper in smaller cities...but it does help some. If you are looking for a house with a low monthly payment ( provided your credit is OK ) then I would check out HUD homes / Foreclosures. You can get them at 80% of asking cost...and a lot of times that is already well below the going cost on houses in that area. Go to http://www.hud.gov it will take you to their main page. Once there look on left hand side of page at BUYING HOMES. Once there you can check on homes in different states. Once you get into that state...it usually has a list of cities...just check on each cities you want to look at. It will show you homes in your area..all you need to do them is drive by it to see if the neighborhood is OK...and the house is not in too bad a condition. Then...contact a realty agent to start the buy.

I bought my HUD homes 5 yrs ago. I got a nice 2 bedroom brick home in Ft Worth, TX for $45,000....put in another $3,000 to put in new carpet..new paint...and upgrades on cabinet doors. It now appraises at $85,000 and my house payments are around $500 a month. Less than the one bedroom apartment I was renting...and I have a large yard to have cook outs and parties.

Answer 3

Your question is kinda oddly worded, but I think I understand what you mean. Houses are cheaper (not mortgages), usually, in more rural areas because typically there is less demand that would inflate the price.
If you're referring to the cost of the mortgage itself, then that usually means what kind of interest rate you got, closing costs, fees, etc. That doesn't vary as much from place to place as much as the price of a home does. There are always people willing to lend money, so you can shop around for good rates.

Answer 4

Mortgages will be cheaper in areas that represent less risk for the lender. If a town is losing population (read "Small Town in North Dakota or Kansas") it is going to be harder to sell a house so the lender's risk is higher. If you are on the beach they are easier to sell so risk is lower.

Answer 5

I look down from my spaceship and I see Tennessee and Georgia are two places where you can find big houses, low cost. Off course, there are reason why? Do your homework hansen before you move there.