First time home buyer/Mortgage question?
Wednesday, April 28th, 2010 at
2:22 am
My fiance and I are looking to purchase our first home in the beginning of 2010. I make roughly 40,000/yr and he makes roughly 60,000. Is a house around 500,000 affordable for us without a large down payment? How much would our monthly mortgage roughly be? Would we get approved with fair credit and without a large down payment (around 20-40K)?
Tagged with: buyer • credit • downpayment • fiance • first time home • first time home buyer • house • mortgage
Filed under: First Time Home Mortgage
if you could get a FHA loan the minimum required down is a 3.5% out of $140K that would be $4900. On a $140,000 loan the monthly payments would be with a 7% (worst case scenerio) fix interest rate would be is $931.42. You have to add taxes to that $931.42 monthly payment which vary froms state to state. In CA it is about 2% which would be aroud $230 extra a month. So you guys are probably seeing a total of about $1200 a month. That is totally duable with both your incomes. Ask yourself if one of you guys loses their work can the other one make the payment? Good luck.
Also you may have to get Private Mortgage Insurance (PMI).
PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.