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MORTGAGE PAYMENT QUESTION??

MORTGAGE PAYMENT QUESTION??

Old Oct 4th 2007, 1:17 am
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Question MORTGAGE PAYMENT QUESTION??

Hi, we have recently moved to New Jersey and are in the process of renting a place, initially for 6 months, before jumping in and buying. The house we are contemplating leasing is going to cost us $4,000 a month.

However, if we were to bite the bullet and just buy instead how much (ball park figure obviously) would we be able to borrow on a repayment of $4,000 a month??

Thanks in advance

PP
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Old Oct 4th 2007, 11:24 am
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by pickledpossum View Post
Hi, we have recently moved to New Jersey and are in the process of renting a place, initially for 6 months, before jumping in and buying. The house we are contemplating leasing is going to cost us $4,000 a month.

However, if we were to bite the bullet and just buy instead how much (ball park figure obviously) would we be able to borrow on a repayment of $4,000 a month??

Thanks in advance

PP
All depends on the type of morgage you get. Got to CNN money or yahoo money they have a load of calculators where you can type in the price of house, interst rate etc. etc. that may help you out!

$4,000 a month!!!! That's a lot for a morgage, but that is even crazier as a rent payment!!!
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Old Oct 4th 2007, 11:32 am
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by pickledpossum View Post
Hi, we have recently moved to New Jersey and are in the process of renting a place, initially for 6 months, before jumping in and buying. The house we are contemplating leasing is going to cost us $4,000 a month.

However, if we were to bite the bullet and just buy instead how much (ball park figure obviously) would we be able to borrow on a repayment of $4,000 a month??

Thanks in advance

PP
Don't forget to factor in the property taxes...
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Old Oct 4th 2007, 11:58 am
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Elvira View Post
Don't forget to factor in the property taxes...
And utilities if you're not paying them now, also insurance and local and county taxes.
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Old Oct 4th 2007, 1:40 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Elvira View Post
Don't forget to factor in the property taxes...
That could be a big one in NJ, and could easily reduce the amount from $4000 to $3000 (maybe even less depending on the area). There are plenty of mortgage calculators out on the web I seem to remember that should give a good idea of the amount that could be borrowed.
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Old Oct 4th 2007, 1:41 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by paddingtongreen View Post
And utilities if you're not paying them now, also insurance and local and county taxes.
...and the fact that if anything needs fixing you have to pay for it if you own the place rather than rent.
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Old Oct 4th 2007, 2:04 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by pickledpossum View Post
Hi, we have recently moved to New Jersey and are in the process of renting a place, initially for 6 months, before jumping in and buying. The house we are contemplating leasing is going to cost us $4,000 a month.

However, if we were to bite the bullet and just buy instead how much (ball park figure obviously) would we be able to borrow on a repayment of $4,000 a month??

Thanks in advance

PP
On a 6% 30 year fixed mortgage, I'd say around $700,000. But thats not including mortgage insurance you'd incur if you finance more than 80%, or property taxes, repair fund, utilities........

And from Rolands recent postings about houses in NJ, you'll need a second mortgage to pay your property taxes!
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Old Oct 4th 2007, 3:51 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by pickledpossum View Post
Hi, we have recently moved to New Jersey and are in the process of renting a place, initially for 6 months, before jumping in and buying. The house we are contemplating leasing is going to cost us $4,000 a month.

However, if we were to bite the bullet and just buy instead how much (ball park figure obviously) would we be able to borrow on a repayment of $4,000 a month??

Thanks in advance

PP
Talk to a local realtor and explain them situation to them. They will also be able to give you the name of a loan officer that will explain things to you.
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Old Oct 4th 2007, 4:04 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Dan725 View Post
On a 6% 30 year fixed mortgage, I'd say around $700,000. But thats not including mortgage insurance you'd incur if you finance more than 80%, or property taxes, repair fund, utilities........

And from Rolands recent postings about houses in NJ, you'll need a second mortgage to pay your property taxes!
Out of interest what are the chances of gettings 6% (or whatever is good at the moment - think it is above 6%) on a 100% mortgage with very little credit history - surely this is the sort of deal which would be considered sub-prime.
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Old Oct 4th 2007, 4:32 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Longy View Post
Out of interest what are the chances of gettings 6% (or whatever is good at the moment - think it is above 6%) on a 100% mortgage with very little credit history - surely this is the sort of deal which would be considered sub-prime.
I think you've answered your question yourself!
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Old Oct 4th 2007, 4:43 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Longy View Post
Out of interest what are the chances of gettings 6% (or whatever is good at the moment - think it is above 6%) on a 100% mortgage with very little credit history - surely this is the sort of deal which would be considered sub-prime.
They won't give a 100% mortgage, but check into FHA, they have been pushed out of the picture recently because of price escalation and the limits on what they were allowed to lend. Those limits are being increased to meet today's prices.

You don't have to be a citizen.

http://www.fha.gov/index.cfm

Last edited by paddingtongreen; Oct 4th 2007 at 4:46 pm.
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Old Oct 4th 2007, 5:14 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by Glen Ellyn Service Crew View Post
A
$4,000 a month!!!! That's a lot for a morgage, but that is even crazier as a rent payment!!!
$4K mortgage payment...that's pretty good going...won't get much in my neck of the woods, but that's not much help to you....but check your state and county website as chances are they'll have something that'll be able to say what sort of taxes you'll have to pay right down to how much tax you pay a year on your car etc.....but make sure you've got enough cash for those utility deposits if you don't have any credit history.
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Old Oct 4th 2007, 5:32 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

Originally Posted by paddingtongreen View Post
They won't give a 100% mortgage, but check into FHA, they have been pushed out of the picture recently because of price escalation and the limits on what they were allowed to lend. Those limits are being increased to meet today's prices.

You don't have to be a citizen.

http://www.fha.gov/index.cfm
The question wasn't for my situation as such although I am thinking of buying a place, I am just more interested in how the banks view what is prime and sub-prime.
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Old Oct 4th 2007, 5:54 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

I would guess around 650k (Interest only).

Loan: $561K
Downpayment: 25%
Interest Rate: 5.875 %

Monthly breakdown (First 5 years interest only):

Interest: $2,744.60
Escrow (Tax and/or Insurance): $679.25
Monthly Payment Amount: $3,423.85

Last edited by tonyghiggins; Oct 4th 2007 at 6:32 pm.
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Old Oct 4th 2007, 6:10 pm
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Default Re: MORTGAGE PAYMENT QUESTION??

This should give you an idea:

Purchase Price = $550k
20% down payment
Interest Rate: 5.85%
Type: Repayment mortgage
Added bonus: ludicrous property taxes

Monthly payment breakdown:
Principal = $520
Interest = $2,400
Property taxes = $1,250 (no, really...)
Total= $4,170

If you're already in the USA it may be too late, but spend a little (think it's $400) joining the AIG International Services thing and it'll pay dividends with the mortgage (through Wells Fargo) and your car insurance. I have a better mortgage deal than most of of the people I know.

Had to pay a chunk of property taxes up front into the escrow account and the payment above is effectively in advance so there's enough in the pot when it's time to pay up.
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