Hi. This is my first post but I am a long-time reader. My question is: If I'm approved for a $180,000 home mortgage loan over 30 years at 8.9% interest. What would my monthly payments be, roughly? Thanks
Monthly Principal & Interest: $1,435.39 Monthly Real Estate Taxes: $174.17 Monthly Hazard Insurance: $82.33 Monthly Mortgage Insurance: $117.00 Total Mortgage Payment: $1,808.89 Down Payment Amount: $10,000.00 Loan To Value Ratio: 94.74%
Just plugged your numbers in at a mortgage calculator site (about.com). There is more to it like down payment, etc. but some of the 'real' experts on here can give you more info.
visit www.bankrate.com and click on the "calculators" link. Click on "mortages" to take you to a simple interest calculator and amortization schedule.
Wow! Thanks for the quick responses! I had no idea it would be that high. I have not started the process yet. I just got my FICO score to 670+ and I'm "looking" but not biting (no hard pulls). Thanks again
BTW---that interest rate is PRETTY HIGH! right now rates are prime (lowest in 40 years!!!). they are fluxuating around 5.67% currently... 680 or above will get the prime rate (they take your middle score)... if you have 640-680 you should get a rate SLIGHTLY higher... in these times, if you have anything above 640, you should be able to get something under 6.5%! you may even be able to get 5.5 or so, depending on the bank! so...shop around.... i hear CHASE has great rates... check out bankrate.com for daily mortgage rate charts...they show the lowest rates and compare to others... good luck!!!!!!!!----atiYana!
I thought I would ask this question using a high interest rate to see what my payments would be roughly. Then I would know what I could afford. But it backfired badly!! I can't afford anywhere near $1,800 a month even if the interest rates were 5.5%. Unless of course, that makes a big diffrence in decreasing my monthly payments. Can u tell I'm very new at this?
SoPark Unfortunately, this type of question is very similar to why is the sky blue. Before I or any mortgage person could give you any sort of realistic response, they would need a lot more information. In a later post, you stated that your FICO was 670ish. That should actually put you in prime rate territory. But, that is just a part of the equation. How much would you be putting down on a property and where would this property be located. Also, what type of payment if affordable for you. These are just beginning questions. A good mortgage person would also want to understand what your goals are and what type of investment strategy you have so that they can be sure that your mortgage would assist rather than hinder your efforts. Hope this helps. fla-tan
Re: Re: Question about home mortgage loan SoPark A $180,000 mortgage at 5.875% fixed rate for 30 years, the principal and interest payment would be $1,050.00 plus things like taxes and insurance. Taxes and insurance rates will vary widely from area to area. So you can see, there is a major difference in the payment with that different an interest rate.
Re: Re: Re: Question about home mortgage loan Thank you fla-tan. So I guess I'm looking at buying in the $125-160,000 range with a fixed rate interest at right around 5% or lower. I'm learning a lot from this board!
Re: Re: Re: Question about home mortgage loan SPD As fla tan can tell you it is also possible to get pre-qualified for a mortgage before you go house shopping. Mortgage brokers will do this for you and it is a good reality check on how much you can afford. Sellers also like to deal with a buyer that has been pre-qualified as it makes the whole escrow easier and smoother for all parties. good luck pb
Re: Re: Re: Re: Question about home mortgage loan Thanks pb but I'm way ahead of you. I planned to do just that and my agent is waiting for me to finish "looking." She told me not to use mortgage brokers because they shop u around to outside lenders. She said go directly to the lender. She has good contacts with reputable lenders in Georgia.
Re: Re: Re: Re: Question about home mortgage loan Never over buy a home you can't reasonably afford. Many mortgage brokers will be able to get you approved for much higher amounts which could over strecth your ability to live comfortably. Make an honest assesment of your finances and settle on a home that is nice but may not be the mansion you've always wanted. My brother in law fell for the more is better principal and bought a home he just can't afford right now. You see he bought this home when overtime at his work was good and he was making a ton of money and was easily able to pay for the mortgage back then. When the overtime stopped he was barely able to make the mortgage let alone pay his other bills. He had relied so heavily on that overtime that he didn't know what to do. Even a second job couldn't have bailed him out! His credit went to high 700's to now he even can't get a crappy credit card. He ended up filing for BK and now is back to renting. My advice is to think long and hard about what you can realisticly afford. Tac
Re: Re: Re: Re: Question about home mortgage loan Thanks tac Atlanta is a horrible market to buy a home right now. Everything "downtown" or "intown" is inflated. I have seen renovated homes going for $200,000 in neighborhoods where the mean income is about $12,000/year. That means the developers are buying the homes of poor black families that have lived there for generations - renovating them, and selling them at a 100% profit. It's ridiculous.
Re: Re: Re: Re: Question about home mortgage loan tac Very good post and I agree. I am shopping for a vacation home and I don't feel comfortable getting a house for as hi as I am pre-approved for. Very tempting to go hi dollar, but what fun is a mortgage you really can't afford. Thanks pb
Re: Re: Re: Re: Question about home mortgage loan Another idea is to prequalify for a mortgage just based upon 1 spouse's income. That way, if one loses their job, you can still afford your mortgage payments.
