Please indulge this beginner's question. I am still trying to wrap my peanut brain around this.
Example:
I take out a 30yr conventional loan for $150k (which in Pittsburgh PA, can give a nice starter home). 20% down payment right off of the bat is $30k. (Unless an FHA is doable but would mean a higher monthly payment, correct?)
With that said, what else would be tacked every month and before close that I should be aware of? The last thing I would want to do is go into a situation thinking I could afford a certain mortgage when I do not include other monthly additions, such as homeowners insurance, for example.
So can anyone enlighten a complete dummy please? Thank you.
Other Than Monthly Mortgage Payments
Started by
Gudziel
, May 01 2012 10:14 AM
15 replies to this topic
#1
Posted 01 May 2012 - 10:14 AM
#2
Posted 01 May 2012 - 10:17 AM
A bigger down payment would make your principal and interest payment lower. In addition to P&I you will also have homeowner's insurance, real estate taxes, and if you don't put 20% down, mortgage insurance (PMI).
Right now I have a loan for $89k at 5.5% and I pay $500ish for P&I but my total payment with all of the above added in is about $900. I also live in Texas where real estate taxes are fairly reasonable.
A good mortgage broker will be able to run some estimates for you based on different scenarios.
Right now I have a loan for $89k at 5.5% and I pay $500ish for P&I but my total payment with all of the above added in is about $900. I also live in Texas where real estate taxes are fairly reasonable.
A good mortgage broker will be able to run some estimates for you based on different scenarios.
#3
Posted 01 May 2012 - 10:37 AM
Taxes in the Burgh are some of the highest around in the state. Have you been watching the news about the new assessments going around? Some are getting 50% increases in their tax bills.
Safe to bet a minimum of $300 a month(expect more after research) for real estate taxes at that price point. Insurance should not be more than $50 a month.
Safe to bet a minimum of $300 a month(expect more after research) for real estate taxes at that price point. Insurance should not be more than $50 a month.
Edited by jst300z, 01 May 2012 - 10:37 AM.
#4
Posted 01 May 2012 - 10:47 AM
Taxes in the Burgh are some of the highest around in the state. Have you been watching the news about the new assessments going around? Some are getting 50% increases in their tax bills.
Safe to bet a minimum of $300 a month(expect more after research) for real estate taxes at that price point. Insurance should not be more than $50 a month.
I did see some of that mentioned a few months ago about rising assessments in the city/borough. I'm about 25min outside of the city and edge of Washington/Allegheny County. So if need be, I'll look around in the neighboring county. lol See if that is better.
Thank you for the info. Completely forgot about that news story!
Anything else though outside of real estate taxes and insurance? is there a way to find out before going in on a house?
#5
Posted 01 May 2012 - 11:22 AM
Start working with a lender before you are looking at houses. A good mortgage broker will be able to run some estimates for you based on different scenarios.
#6
Posted 01 May 2012 - 11:28 AM
that's a very good idea. I'll need to do that when the time comes. I know that when I'm fully ready to apply the market will most likely be different than it is now. Probably for the better as a whole, but not for me as housing prices probably will increase. lol 
#7
Posted 01 May 2012 - 12:48 PM
Not a monthly expense but you should plan for house upkeep in your monthly budget as well. Never know when something will go wrong/break.
#8
Posted 02 May 2012 - 09:48 AM
i think trulia or zillow list last years taxes paid..try there
FHA has very high new MIP to the point where it doesnt even pay for a recent mortgage to get refied to save a percent or so. but the good news is it comes off after 5 years or 78% LTV. so if you need a low down payment and can live with the higher MIP it may be a good option for you
also with homeowners when you have all car/house etc with one company they give discounts and ask for discounts for things like alunmi associations etc..i saved 20% on liberty mutual this way
so you will have
mortgage
homeowners
taxes
MIP under 20%
also some homes have HOA fees if you are into living in one of those kinds of areas and enjoy being told how high your grass can be
FHA has very high new MIP to the point where it doesnt even pay for a recent mortgage to get refied to save a percent or so. but the good news is it comes off after 5 years or 78% LTV. so if you need a low down payment and can live with the higher MIP it may be a good option for you
also with homeowners when you have all car/house etc with one company they give discounts and ask for discounts for things like alunmi associations etc..i saved 20% on liberty mutual this way
so you will have
mortgage
homeowners
taxes
MIP under 20%
also some homes have HOA fees if you are into living in one of those kinds of areas and enjoy being told how high your grass can be
#9
Posted 02 May 2012 - 11:58 AM
. but the good news is it comes off after 5 years or 78% LTV.
Is that correct? Or is it the later of the 2? In other words, the MIP comes off when LTV is 78% or 5 years, whichever comes later. It doesn't come off after 5 years regardless of LTV
#10
Posted 02 May 2012 - 12:45 PM
but the good news is it comes off after 5 years or 78% LTV.....
....whichever comes LAST
#11
Posted 04 May 2012 - 10:17 AM
A bigger down payment would make your principal and interest payment lower. In addition to P&I you will also have homeowner's insurance, real estate taxes, and if you don't put 20% down, mortgage insurance (PMI).
Right now I have a loan for $89k at 5.5% and I pay $500ish for P&I but my total payment with all of the above added in is about $900. I also live in Texas where real estate taxes are fairly reasonable.
A good mortgage broker will be able to run some estimates for you based on different scenarios.
Wow.My property taxes on 68k home in TN is 607 a year (and I pay city and county taxes). 443 pays P&I (no PMI with VA loan)and insurance. Sad to think I couldn't afford a 89k house in Texas.
#12
Posted 05 May 2012 - 01:09 PM
A bigger down payment would make your principal and interest payment lower. In addition to P&I you will also have homeowner's insurance, real estate taxes, and if you don't put 20% down, mortgage insurance (PMI).
Right now I have a loan for $89k at 5.5% and I pay $500ish for P&I but my total payment with all of the above added in is about $900. I also live in Texas where real estate taxes are fairly reasonable.
A good mortgage broker will be able to run some estimates for you based on different scenarios.
Wow.My property taxes on 68k home in TN is 607 a year (and I pay city and county taxes). 443 pays P&I (no PMI with VA loan)and insurance. Sad to think I couldn't afford a 89k house in Texas.
My taxes are roughly $3k a year and insurance another $1200. My tax rate is one of the lower in the area too so it could be worse.
#13
Brian B The Loan Professor
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Posted 05 May 2012 - 08:28 PM
Taxes in TX are some of the highest but the house to dollar is a bargain comapred to many places in the country - They also have one of the best education systems in the country (paid by those high taxes) - the taxes may be a negative but there are some real positives to consider
#14
Chris in OK
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Posted 14 May 2012 - 06:38 AM
I guess I'm fortunate that the tax rate for this county is my 0.44% of the property value. Some of these tax rates I read about are insane!
#15
Posted 14 May 2012 - 08:47 AM
PA has legislation pending to abolish the property tax so we are all crossing our fingers! of course non homeowners wont like the addl burden on them but too bad
#16
Posted 14 May 2012 - 09:12 PM
LOL..try living in NH..my taxes on a 150,000 home were 7,000.00 the first few years. I had electric heat, which made my bill 800.00 per month in the winter. I had the house converted to oil, saving me a ton (heating bill went from 800.00 monthly to 1000.00 yearly). Come re-assessment time, WACK taxes upped to 10,000.00 per year....Florida never looked so inviting!
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