I’ve looked at a trillion online calculators and they ALL give answers that are just all over the map.
Here’s my situation: If anyone can help ease my mind with some REAL insight, I’d be SO appreciative.
I make k a year. My credit score is at least 720. This is what I scored about two months ago PRIOR to paying off my credit cards and a personal loan I had. Never missed a payment, never was late on one either.
My debt to income ratio is 11 percent.
I have k for a down payment and an extra k for closing costs. When the time comes to buy a house (which will be this summer, God willing), I MAY have k to put down instead of the .)
I live in CT. Property tax, on the high end will probably be ,500/a year. Insurance per year I’m guessing will be ,000……<—it’s probably less than that, I don’t know how much house insurance really costs when it comes down to it.
I have k in a pension plan and k in my 401(k).
What are the chances I will get approved for a 0 or 0k mortgage? Is this possible? Or am I stretching it? Note I am the ONLY buyer/owner of this house.
Thanks guys!
I just applied for a mortgage months ago and got approved for a house 3 times my annual income. I think you can expect 150K or better. You certainly appear more than able to accomodate that given you’ve paid off a lot of debt and have a solid savings in place. You are in a good position to get approved. Remember this. Just because you get approved doesn’t mean you’re prequalified…a realtor wants to know if you’re prequalified so you know a real number (house price) that you can afford given your debt load. I hope this helps and hats off to you for paying off debt and saving for the future.
Well, use one of the calculators to figure out what your payment will be. Don’t forget insurance.
Then put that much away for the next few months. If you can do it, then you should be okay. Don’t forget that you will have a few extra maintenance costs like yard care, a washer and dryer, and higher utility bills.
The only way to know if you can swing it is to give it a trial run. If you can live without that $2,000 or so each month, then you will be okay. Have you had $2,000 (minus your current rent) left over at the end of of the last 6 months or so?
Notice that I am not talking about what you will qualify for, I am talking about what you can afford. Trying to buy a house equal to almost 4 times your income seems pretty high to me, but I live in Texas where houses are cheap.
You sound like you are prepared and have what you need to take to the table. Personally, I would also try to have 6 month’s in an emergency fund. Perhaps instead of putting that extra $5K down you should keep it on hand.
I am not sure you will be able to do the deal with so litlte down though. Typically you want 10% (20% if you want to avoid PMI. That means you should have a minimum of $17 or 18K to put down and preferably twice that.
Good Luck!
No. The only ones who can give you more than a ballpark guess is a banker or mortgage broker who will review all your personal financial details and help you get pre-approved for a loan. Only then will you know for certain.
If you want a 170 to 180k house, you better save up another 15 to 20k. I would say a conservative estimate would be a mortgage of 150k. You can buy a house that is more than 150k, but you are going to have to come up with the extra money. You don’t want to be house poor. Too many people are in that situation right now.
Mortgage loan is a term used for the loans secured by a property. Mortgage loans refer to a loan secured by residential property, often for the purpose of securing real estate. Mortgage loans are priced lower than other loan structures because the value of the property risk for the lender.
http://www.worldbestloans.com/Mortgage%20Loan.htm
A fixed rate mortgage loan has its own benefit. If the borrower is budget conscious, he will remain at peace because the monthly mortgage amount will not change.Fixed rate mortgage loan is a loan where the interest rate remains the same through the term of the loan. Fixed rate mortgage loans are the most traditional form of loan.