2009
12.30
12.30
Jake M asked:
I want to purchase a home for 359,000, The mortgage calculator says my payment will be around 1780 a month on a 50 year loan with 0 down and 7 percent interest rate, is this accurate. Or is this even possible. I’m a first time home buyer and am not too familiar with all of this. My credit isnt the best but its decent. I make around 33,000 a year. Please let me know if this can happen. i would like some advise before i get to serious and get a real estate agent and come to find out i cant afford anything.
Virginia
I want to purchase a home for 359,000, The mortgage calculator says my payment will be around 1780 a month on a 50 year loan with 0 down and 7 percent interest rate, is this accurate. Or is this even possible. I’m a first time home buyer and am not too familiar with all of this. My credit isnt the best but its decent. I make around 33,000 a year. Please let me know if this can happen. i would like some advise before i get to serious and get a real estate agent and come to find out i cant afford anything.
Virginia
Clifford
Not possible! 50 year, zero down, 7% with damaged credit? Not even last year when they were giving money away like chicklets. Save your money for a down payment and fix your credit. Plain and simple. don’t believe anything else … you are not ready to own a house yet.
Ohh, and besides, $33,000 per year cannot possibly qualify for (nor afford even if by some creative program you could qualify) a $1780 payment.
The industry needs a bit of tough love these days.
Marc
Stay away from loans. Its a blood sucker for humans. You will become a slave for 50 years
Harold
Forget all that, just contact a bank. They can tell you rates and numbers without you even telling a name.
Suzanne
Gregg has given you a straight answer.
Even if you were to pay interest only on that loan you would be looking at a payment of $2160 if you got a 100% product in one loan. With mid-grade credit, you would likely be looking at an interest rate near 9%. I haven’t seen this product in about 3 weeks though, and after last week’s shakedown, I doubt it still exists.
Even if you have no other debt, you wouldn’t be able to cover the payment on the loan with your income alone. After withholding, you’ll be left with very very little beyond your payment each month.
Be well, seek wise counsel from a good local mortgage specialist with a long history and good references.
Tina
50 year mortgages typically have higher payments than interest only.
Your math is wrong on the 50 as well. Even if you had these numbers, your payment would be $2160. Interest only at that rate would be $2094.
here’s some other things that don’t make sense here.
Let’s say you have a $2094 payment, taxes are probably at least $3000 a year and insurance at least $1000. That’s another $333 the bank adds to your payment so you have enough to pay for your Home Owner’s Insurance and property taxes. This puts you at $2400 a month. Your yearly payments alone on your house obligation is $28,800. I’m assuming you get taxes taken out on $33,000. At that income level it’s about 25%. You only have $24,750 for everything the entire year.
Unless you are buying this house with a spouse or with some other person in mind that will be making payments with you or taking care of you, you can really only afford $928 a month. This has to include taxes and insurance as well. this would put you around a $140,000 mortgage.
If you are truly interested in a buying a place you need to be prequalified before you do anything else. You can call me or email me casey.x.casperson or visit my website caseycasperson.com. I’m a chase loan officer and licensed nationwide. I can provide you a letter for prequalification as well as a total cost analysis that will show you the best way to make this work for you.
William
For accurate numbers – check out a mortgage calculator at or call a GOOD broker. Your income does not qualify you for this type of home amount, and do not forget to add in the monthly escrow costs for taxes and insurance. Also, usually with home ownership is maintenance costs, sometimes can run very high for roof, a/c etc… as well as monthly and annual costs associated with ownership.