Hey there guys. I’m tinkering with the idea of buying a house. I don’t make a ton of money, but I have a very secure full time job. I’ve kind of put off buying a place since I thought my last relationship of 5 yrs would evolve into buying a place together but it didn’t work out, and as a result of my newfound love for the lack of drama in my life, I’ll be staying single for quite a while. As a result, biting off a mortgage on my own is quite a bit to consider. I’m working on a budget scheme now to see what I could afford (if anything) and taking all bills into effect. As a result, I’m trying to determine if I can swing this on my own or if I need to get a 2nd job to make ends meet.
I have a good line of credit, with having had several credit cards (all are paid off except 1) throughout my college years and have also had a car loan that I paid off a year and a half early – all in good standing and never been late on a payment. I’ve gone through some "mortgage calculators" I found on Google to give me an estimate of what banks would rate me at for a mortgage.
I’ve never owned a home or lived in an apartment, so I’m just trying to be as smart as possible and get as much knowledge as possible prior to going into a bank to break down the details. If I were to get a mortgage @ (throwing a number out there) 500 dollars a month, after taxes and whatever else that goes into the mortgage/owning a home, what would I expect to pay when it’s all said and done? I know there’s additional charges for tv or internet or whatever else I want, but I’m talking strictly from the "mortgage" itself and the taxes or additional costs associated with it, what would a 500 dollar mortgage end up at?
Thanks for any insight and additional information you might be able to provide.
I given you an address of a calculator to play with, below. If you borrowed $95,000 @ 5% for 30 years, you will pay $507 a month plus insurance and taxes. At the end of 30 long years, you will have paid $182, 521 total, $87,520 just in interest.
But you must have 20% down in most cases today. That is just $5000 in this case, so you would buy a $100k home.
you have options
right now with the way things are you can get a nice place at very little money
bank owned homes can go for 1/5 or less what they are worth
several of my friends have done this and if you are any good with a hammer and saw so much the better
also try HUD homes they go real cheap and a lot of these homes are in move in condition
A good rule is to buy a house with a fixed rate 15 year mortgage. Make sure the total of the mortgage payment (PITI = Principal + Interest + Taxes + Insurance) is less than 25%r your monthly take home pay.