We are purchasing a house. We have a realtor and everything. We tried to get a house in this particular town close to were we live now. Anyway, since it was foreclosed on we were going to get the house and everything for $40,000 and the payments were going to be $160 a month I am rounding it too $200. Now in the same town we just signed a house for $57,000 that is actually smaller but doesn’t need as much work on it. Our Realtor works for people who can not afford so much and work with you to get what is called a HUD home for a VERY cheap price, monthly. When I asked what the payments would be close to, she then said about $700 a month. That is the price of a new house built from the ground up in the same town and we know that because we tried to get a house built 3 months ago and couldn’t afford it. I am very very confused and cant understand how for $27,000 more that would make our payments go up by a little more than $500 a month, In the same town, on a smaller property, with less sq ft and less property values on this side of town. Can anyone brake this down for me?
Additional Details
I have used Mortgage calculator and here is what I know, the home value in 42,000 we are getting 57,000 with a property tax of 2.0 for the absolute highest in ALL the town (as an estimate) and put 6.5 interest rate in (which it is actually closer to 5.5) i don’t know what pmi is but even with the mortgage calculator it says we should only be paying $479.03 and not $700 a month. That is reason for my question in the first place. I don’t understand how $27,000 more dollars value wise make the payments $220 more than it equals out to be
The prices were period the end paying $161 a month or I rounded it up to $200 just because we aren’t sure 100% what it would actually be. Period the end this new house that we just signed is going to be $710 a month. Paying for everything that needs to be paid for. If you can’t tell I have no clue how to understand all this "stuff" and lingo. It makes no sense how it could be sooo much more when doing the math it would be close to $480 a month period the end and not $710 period the end.
what people are not understanding my husband did this. We have an apartment and can not afford to be here. we can not save ANY MONEY and in fact can not afford where we are due to a new baby. When we went into this our realtor assured us that we can get a house for less money. Which it is but put that aside I feel like we are getting played because we are paying on a 30 year loan so that should be about $480 a month and not $710 am month which sounds like it be more like a 15 year loan. I am wondering if property taxes can just go up from one house being 2.% to this house haveing to be 7.% for this nes $710 estimate on monthly payments!?
Your real estate agent is not a lender. Instead of getting worked up and posting over and over, you call a few banks and find out what you qualify for and what your payments will be.
Your real estate agent is not a lender. Instead of getting worked up and posting over and over, you call a few banks and find out what you qualify for and what your payments will be.
References :
PMI is insurance paid to the lender since you are not putting down 20% cash. Then there is home owners insurance. Ask the realtor do write it all down for you. then you will have the added cost of sewer, water, heat, trash and so on. Apparently you cannot afford this house.
References :
You should not have signed anything if you don’t understand it.
STOP EVERYTHING now and make the folk in charge explain it to you until you do understand it.
You are correct. But I think your math is wrong: $57,000 – $40,000 = $17,000. Not $27,000.
Based on the information you list, a $57,000 loan should have a monthly payment about $145 higher than a $40,000 loan.
If it is a 15 year mortgage rather than a 30 year mortgage, the monthly payment would be about $280 higher.
References :
You should stop all this for a year and take some time to build up money and stabilize your financial situation. Then during that year start reading some books on real estate so that you understand the basics on purchasing a home. You are truely going to harm yourself by walking into such a large purchase so clueless. You never, ever purchase something based on payments, that is just ludacris. Look to see what the value of the home or whatever you are buying is before you make a purchase. You might also think that you are being smart and that your realtor is being a nice guy in helping you buy a very cheap home. Most likely you are buying much more than you are prepared for. A home that is priced very low and is on the market long enough for someone to drag their feet and find financing for it makes this a house that many investors have passed over already because it is either priced to high, to hard of a repair, or a combination of both. Please step back and take some time to learn some more on this and to better you finances which will only help your situation, then you can make an informed decision. good luck
References :
Previous poster is correct, you should not be asking your real estate agent what your payments will be nor should she be telling you what your payments might be. You need to speak with your lender and they can give you different payment options on different mortgage programs, taking into consideration the property taxes on this house, the homeowners insurance and the mortgage insurance. I also wanted to add that $700 seems on the high side for that purchase price and $200 seems to be ridiculously too low for the first purchase price. If you’d like to get accurate payment information, feel free to email me and I can take a mini phone or email application from you.
References :
Mortgage banker for 15 years, real estate paralegal prior to that. Lend in 49 states, specializing in government loans (FHA, VA, USDA) and first time home buyers.