Home Loan Repayment Calculator [mortgageloan-processor.blogspot.com]
Question by hookahhead43228: First time home buyer... Best Loan? My fiancee and I are deciding to buy a home basically because we pay 975 a month for a 1 bedroom apartment in Virginia. We are sick of spending that much money on something we will never own and feel like we are thrwoing it away and could be investing in something like a home. The only thing is that realty is really expensive in VA and we are not in the position to move out of the state. I go to school here for nursing and he just relocated here for his job (not military). I work only part time and make just a little over 700 a week after taxes and he makes a little over 2300 a week after taxes. We are looking at homes in the nicer parts of Norfolk, which is VERY limited!!!! We we interested in buying a home last year and got pre-qualified and was told we we pre qualified for somewhere in the 180,000 range. But then I was working full time makeing about 1200 a week and he was making 2300. For some reason he seems to think that we still qualify for 180,000 range and has been looking all over for homes in that range, but I don't think we do. I have done the mortgage calculators and it says we qualify for like 150,000... but that will get you nothing now a days. We lost contact with the person who we got pre qualified with last year, and we met her through a friend that we lost contact with, so we are on our own and don't know what the hell to do first!!!! He seems to think that if we buy a home for 180,000 that our mortgage payment will only be around 900-1000 a month (30 yrs.) but I think he is sadly mistaken and any time I try to tell him this is causes a HUGE fight. There is no way that we are gouing to get a home for 180,000 and only pay 1000 a month for a mortgage... maybe I am wrong? He thinks that the first time home buyers program will cover all closing costs and things like that, and also is planning to only put down like 5,000... and still only pay 1000 a month on a 180,000 mortgage note!!!! What loan should I get that would have the best rate and one that will not require me to put a bunch of money down??? Who should I go through? Sorry all!!! I meant a 700 a month and 2300 a month! Best answer for First time home buyer... Best Loan?:
Answer by ranger_co_1_75
FHA has some good first time home owner programs with reduced down payments and lower interest rates.
Answer by Evil Independent
Contact a lender and get pre-qualified again. FHA loans are designed for first time home buyers and should be lots of money available with this bail out in banking. Interest rate will have the largest impact on your mortgage payment and I don't know what the current rates are, but I tend to agree with you that a mortgage of $ 180,000 will cost over $ 1,000 per month.
Answer by A D
Sounds like you and your fiance should explore an FHA loan. If you have a solid bank that you do business with or a credit union, that would be a place to start looking for financing. If you have the real estate agent who will act as your buyer's agent, that person should be able to give you some suggestions of lenders who can help you. I strongly recommend that you get a licensed real estate agent to represent you in this transaction. The agent commission will probably be at no cost to you since the listing agent usually agrees to share the commission with a buyer's agent. Since you are both first time home buyers, I think you should make sure you have someone who has a fiduciary responsibility to you and your interests. Buying property is not hard, but there are many details and steps to the process. Let someone help you. I did a quick calculation based on the new FHA requirement of 3.5% down payment. For a $ 180,000 sales price with 3.5% down payment at 5% interest for 30 yrs, I estimate the monthly PI (Principal & Interest) payment for the loan to be about $ 934. In addition, you will have to pay MIP (mortgage insurance), property taxes and homeowner's insurance monthly into an escrow account, so your final monthly payment will definitely exceed $ 1,000. If you buy a condo, there will also be HOA monthly fees. How much? Ask your real estate agent or lender, that person will know what is typical for your area. I estimate closing costs to you of about $ 11,000, but if you complete the sale by July 2009, you will be able to get the $ 7,500 first time buyer incentive when you file your taxes. But, that will not happen at closing. Your agent may be able to negotiate for the seller to help you with closing costs. It really just depends on your market area. I hope that helps. Good luck
Answer by One Step Ahead
Bank owned houses are a real good ideal if you are willing to put some elbow grease into the house. You can get a house for $ $ thousand less than a showcase house. We bought a $ 165,000 house in September that was vacant for over a year, and we added $ 15,000 in improvements. The value has already gone up compare to the other houses in the neighborhood. Check out the houses in the neighborhood that you want to live in that are for sale. Compare prices with ready to move in vs need some TLC. We qualified up to $ 250,000, and we are very proud of this home. The people and the neighborhood are so glad we bought the place and made it look like the rest of the houses--nice landscape in front and back yard. We had more time than money, and we must have looked at least fifty houses before we could agree on the same house.
Answer by glenn
You seem to have a much better idea of real life than he does. However you both need to learn a lot before you buy. Ask friends or family that have bought homes in the area recently who they used to get a mortgage and if they were happy with the way things were done. Go visit the loan officer (in person) that they recommend. Ask what kind of programs are available for first time home buyers- ask what you can qualify for. Ask what your total payment will be including your payments for property tax and homeowners insurance. Only buy a place that you can comfortably make the payments on and leave some money for additional expenses like repairs or mowing lawns or stuff you want to furnish the home with. Buying a home right now could the the greatest thing you ever did. In many parts of the country the prices are very low and the interest rates are extremely low. But you want to enjoy living there and that means you don't want to get in over your head. Also you only want to buy if you intend to stay in this area at least three to five years- because of the cost of buying and selling real estate.
Answer by golferwhoworks
first of all with the drop in income and if you are not working at the same place even part time your income may not qualify in this at all. Second is you are correct that a loan that size will likely cost around $ 1400 a month with taxes and insurances included. Third their are programs but FHA does require starting the first of the year 3.5% down payment and that can be gifted from a family member. Lat thing is NEVER EVER buy a home with some one until you are wed. This can cause huge problems if you split up. I see it every day on this forum. Now you may never split up I hope you don't but it does happen. You guys are not ready to buy a home yet as you have no long term savings in place Sorry I am a mortgage banker in TN & KY
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If you are currently paying on a home mortgage or you are considering buying a new home and are trying to figure out your mortgage costs, you should consider using a home loan repayment calculator. These calculators are available for free online and they are simply to allow you as a prospective home owner or a current home owner to make wise decisions regarding your mortgage. The calculators are very easy to use and are provided at no cost by many large online financial services blogs and websites. Once you learn how to use these calculators you will have another tool in your arsenal of tools that will aid you on your road to financial freedom.
A home loan repayment calculator is very simple to use. You will need to have some basic information before you begin to use one of these calculators: your principle balance, your home mortgage interest rate, your mortgage term, and the date of your mortgage.
The monthly mortgage payment that is generated by your home loan repayment calculator does no include any escrow payments you are required to pay such as home owner's insurance or property taxes. This escrow payment will be added to your monthly payment and should be considered before signing on to make the mortgage payment and purchase your home. One of the great options you have with a home loan repayment calculator is to make forecasts and play with various scenarios while looking at your home loan documents. This means that you can calculate how much time it will take to prepay your mortgage if you make extra monthly payments to help pay down your principle balance before the scheduled repayment date. Recommend Home Loan Repayment Calculator Articles
