Members hangwire Posted February 19, 2009 Members Share Posted February 19, 2009 I have found a bunch that take info for a mortgage quote, but I am looking fir something that will take what I pay and figure taxes and insuance and show what price range of house cost I would be at.... Anyone can give me a link? Link to comment Share on other sites More sharing options...
Members bowlingshirt Posted February 19, 2009 Members Share Posted February 19, 2009 This is a quick way to do it. As for the escrow payments (taxes and insurance), you can always ballpark a figure by adding an extra 1.5% to whatever interest rate you are using.http://www.drcalculator.com/mortgage/ Link to comment Share on other sites More sharing options...
Members uitar9 Posted February 19, 2009 Members Share Posted February 19, 2009 Based on my Canadian experiance banks will take you to 40-42% of your annual gross salary (combined with spouse of choice) to your total debt payments, including your new mortgage payment (add back the rent you won't have to pay) depending on location, maximum mortgage of 75-80%, (non guaranteed) of the purchase price so at say 80% mortgage of the house you are looking at, plug that into the many mortgage calculators you can find on-line, to figure the payment and than put that into your 40-42% calculation If it takes you over, you either need to find a smaller house, or a higher downpayment Link to comment Share on other sites More sharing options...
Members hangwire Posted February 19, 2009 Author Members Share Posted February 19, 2009 I could not access on my phone, and I can't check at work, so I'll get back to this later tonig or tomorrow at home.... And percentage guy is probably helpful, but I am not going to figure that with my limited knowledge Just looking to see... " I pay X which means X monly house payment for a mortgage, tax, and insurance would = a Y value house" when looking at listings. Link to comment Share on other sites More sharing options...
Members rdm Posted February 19, 2009 Members Share Posted February 19, 2009 Rent has nothing to do with what house price you can afford. Here's what you need to do to pre-qual yourself: - Find a home - Figure out purchase price minus any down payment funds at reasonable interest rate for your P&I payment - Figure out local tax rate and insurance plus any HOA, SID/LID fees - Add up all monthly debts + new house payment plus taxes/insurance - Subtract that from the amount of $$$ you bring home every month - Make sure that total is not great that 45-49% of your monthly income That's a really rough way of figuring out where you stand. Obviously if the percentage of your debt to income is too high you need to be looking at a cheaper home or reduce your monthly debts Link to comment Share on other sites More sharing options...
Members bowlingshirt Posted February 19, 2009 Members Share Posted February 19, 2009 Rent has nothing to do with what house price you can afford. Yeah, the lenders like to tell you that you can afford alot more house than you really can, so they make more money, and you go broke paying your mortgage. The OP has the right idea...he knows what he can afford a month for housing...he's just trying to figure out what that translates into for a home purchase. Link to comment Share on other sites More sharing options...
Members matterday Posted February 19, 2009 Members Share Posted February 19, 2009 How much do you plan on putting down and what is your credit like? Too many variables in buying a home. Link to comment Share on other sites More sharing options...
Members rdm Posted February 19, 2009 Members Share Posted February 19, 2009 Yeah, the lenders like to tell you that you can afford alot more house than you really can, so they make more money, and you go broke paying your mortgage.The OP has the right idea...he knows what he can afford a month for housing...he's just trying to figure out what that translates into for a home purchase. I agree. I used to be a loan officer. The issue though is that they usually don't put you through the ringer when renting a condo, as far as DTI ratios, etc. I know some people that were turned down for loans that were for a smaller monthly payment than the rent they were paying. We're in a credit crunch...and with so many lenders putting people under a microscope right now, I wouldn't use your rent to figure out what you can afford for a mtg payment. Link to comment Share on other sites More sharing options...
Members hangwire Posted February 19, 2009 Author Members Share Posted February 19, 2009 But I need to know what price range it equates to to even loo at a home... What is the sence of looking at 140k homes if my money budget only willget me 100k max? Link to comment Share on other sites More sharing options...
Members rdm Posted February 19, 2009 Members Share Posted February 19, 2009 But I need to know what price range it equates to to even loo at a home... What is the sence of looking at 140k homes if my money budget only willget me 100k max? That's why you need to sit down with a loan officer and actually get qualified so you will know EXACTLY what interest rate you will qualify for. Loan amount is only half the equation. You might not qualify for a $140k loan if your interest rate is going to be 13%. Link to comment Share on other sites More sharing options...
Members rdm Posted February 19, 2009 Members Share Posted February 19, 2009 And don't go to a broker. Use a direct lender or a bank. Link to comment Share on other sites More sharing options...
Members fractal Posted February 20, 2009 Members Share Posted February 20, 2009 But I need to know what price range it equates to to even loo at a home... What is the sence of looking at 140k homes if my money budget only willget me 100k max?140K homes?!??!?!?!?!?:cry::cry::cry: Link to comment Share on other sites More sharing options...
Members Hiwatt Bob Posted February 20, 2009 Members Share Posted February 20, 2009 i have no idea who/what will get approved for loans these days--but my advice would be to keep your mortgage payment (which is essentially interest/principal + property tax + homeowners ins.) at 30% or below your monthly income (assuming you don't have substantial other debts). even if a bank would approve me for 45%--i wouldn't even consider it, it's just too risky. unless you've got a substantial cash cushion to bail you out if you lose a job, go on medical leave, etc--it really is risky to go that high. other factors to consider--your mortgage payment will be mostly interest to begin with. mortgage interest payments are tax deductible--so there is a big tax advantage to figure into the equation, as opposed to rent where there is no such deduction. Link to comment Share on other sites More sharing options...
Members MegaTom Posted February 20, 2009 Members Share Posted February 20, 2009 But I need to know what price range it equates to to even loo at a home... What is the sence of looking at 140k homes if my money budget only willget me 100k max? There are people that get paid to figure this out for you. They're called loan officers and they can be found at just about any bank or credit union. If you are serious about buying a house, they are the people that you want to start talking to. There is no way to figure out what you can afford until someone looks at your income, credit history, current debts, amount you can afford pay as a down payment, and all of the other variables that affect what your interest rate, and therefor monthly payment, would be. Link to comment Share on other sites More sharing options...
Members hangwire Posted February 20, 2009 Author Members Share Posted February 20, 2009 140K homes?!??!?!?!?!? :cry: :cry: :cry: move away from Caliin Janesville, wi where a GM plant just closed... you can get a 5 bedroom, 3 bath home for 85K because there are no buyers with no good paying jobs in that area any longer Link to comment Share on other sites More sharing options...
Members amp_surgeon Posted February 20, 2009 Members Share Posted February 20, 2009 I'd wait until I was pretty sure that the housing market had bottomed out. Another very important thing to consider - your mortgage interest will be 100% deductible, presuming you live in the home. You can offset your tax withholding to compensate for this. There's a calculator on the IRS website for figuring out how many dependents to claim on your W4, based on your deductible expenses. I claim 11 dependents, but only actually have myself and my daughter. I come close to breaking even every April, mainly because of the amount of mortgage interest I pay. Link to comment Share on other sites More sharing options...
Members bowlingshirt Posted February 20, 2009 Members Share Posted February 20, 2009 I claim 11 dependents, but only actually have myself and my daughter. Wait...how does this work I need to turn my one daughter into 11 dependents, too. Link to comment Share on other sites More sharing options...
Members GCDEF Posted February 20, 2009 Members Share Posted February 20, 2009 But I need to know what price range it equates to to even loo at a home... What is the sence of looking at 140k homes if my money budget only willget me 100k max? There are plenty of mortgage calculators out there. You can put in a principal amount, interest amount and number of years to pay, and it will give you the monthly payment. You could start by playing around with one of them, but remember you'll need to add homeowner's insurance and property taxes on top of it, which will probably be around another 20 - 30%. If you're in an apartment now, you'll be responsible for all your own utilities and repairs. Best advice I can offer is don't go anywhere near what the lenders tell you you can afford. Leave yourself a lot of wiggle room for the things that can go wrong. Owning a home is expensive. Link to comment Share on other sites More sharing options...
Members amp_surgeon Posted February 20, 2009 Members Share Posted February 20, 2009 Wait...how does this work I need to turn my one daughter into 11 dependents, too. There are only a couple of ways you can specify how your employer is supposed to adjust your withholding on your W4 to match your deductions. One way is to specify the number of dependents. The other way is to specify a fixed dollar amount which your employer will deduct. The second method is pretty much only useful if your income is pretty much fixed.Anyway, the objective is to come as close as possible to breaking even - neither owing nor being owed any money when you file your return. Owing money can stress your budget. Being owed money is like giving the government an interest free loan. The W4 calculator on the IRS website will help you figure out what to put on the W4 to reach that objective. It will take into account pretty much all of your deductions and exemptions.Note that this isn't much good unless you itemize your deductions. Anyone who pays mortgage interest and doesn't itemize is completely nuts. Link to comment Share on other sites More sharing options...
Members bowlingshirt Posted February 20, 2009 Members Share Posted February 20, 2009 There are only a couple of ways you can specify how your employer is supposed to adjust your withholding on your W4 to match your deductions. One way is to specify the number of dependents. The other way is to specify a fixed dollar amount which your employer will deduct. The second method is pretty much only useful if your income is pretty much fixed. Anyway, the objective is to come as close as possible to breaking even - neither owing nor being owed any money when you file your return. Owing money can stress your budget. Being owed money is like giving the government an interest free loan. The W4 calculator on the IRS website will help you figure out what to put on the W4 to reach that objective. It will take into account pretty much all of your deductions and exemptions. Note that this isn't much good unless you itemize your deductions. Anyone who pays mortgage interest and doesn't itemize is completely nuts. OK thanks Link to comment Share on other sites More sharing options...
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