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Denise Said:

have a question about monthly mortgage payment...?

We Answered:

Okay this question is so hard to answer not knowing where you live or values. I will give some advice.

First time homebuyers normally have a 3% downpayment. this will affect your MI Premium.

If you are going FHA its 1.5% of mortgage insurance upfront. That is added to your loan. Then its .5% of your mortgage. So say its 100,000 loan. They add 1.5% to that loan and your montly payment would be around 42 dollars a month for mortgage insurance FHA. FHA is always the same reqardless of what you put down. Its 1.5% and .5% monthly divided for a year.

Now lets say its conventional. That will change at 97,95,90,85% of your down payment. You put 3% down your rate will be one thing. You put 5% down it will be another.

http://www.mgic.com/is/html/ratefinder.h…

That will tell you the rate. When calculating this if you want to play your coverage will be 35%. When it asks for that. At 100K im showing 80 dollars a month. Its more expensive then FHA per month but you dont have the upfront that makes your payment cheaper.

For Hazard Insurance I use .3% of the home value. So I would say 300 dollars a year. So 25 bucks a month (assume you are not in a flood zone)

Taxes I use .8% So 800 a year so 66.66 a month.

This is based on a $100,000 loan. If you use those figures they wont be exact but they should be close. So on my example lets say you do $100,000 loan at 5.75% rate.

Here is your breakdown.
583 principal and interest
66 Taxes
82 Mortgage insurance (assuming 3% down and not FHA)
25 hazard insurance.

Its basically always going to be around 25-30% more then your payment.

Good luck.

Herbert Said:

PLEASE! I really need some information on Airforce living, PLEASE! 10 points!?

We Answered:

I was in the Army, but it's much the same.

If you live ON POST (base in your case) then you do not pay housing, electricity and water. IF you are married, you'll get base housing. If you are single, you'd probably live in bachelor officer's quarters (BOQ). In either case, as an officer, you'd buy your own food. Pilots are officers. Note: Most enlisted people living on base are provided food in a "mess hall" or dining facility.

If you live OFF POST, then you receive a housing allowance called basic allowance for quarters (BAQ). You use that money to pay all the normal bills anyone else would -- rent or mortage, utilities, food.

In either case, you'd probably need a car. You also need to provide your uniforms as an officer, but do receive a clothing allowance of some sort.

EDIT: A minor correction. For food, you draw a different allowance called "separate rations". All officers get it and some enlisted, depending upon their job OR if they live off post.

Joel Said:

How much rent should I charge for a $25,000 house?

We Answered:

That's some cheap living ! Here in my neck of the woods outside NYC even a crappy one bedroom starts around $800..I would go for $325 and try to figure the trash and water cost to be factored in or be the responsibility of the tenant and compromise from there,,,sounds like a place I should invest in.

Walter Said:

Condo/Home Insurance - how would I even begin to shop around?

We Answered:

Random guess might be ok at this stage, but I would go visit an insurance company in person and talk about what coverage would be best in my situation before I buy a policy.

I would first talk to who ever I have car insurance with or who I have had renters insurance with. My brother has homeowners insurance thru AAA (the people that help you if your car doesn't run or gets a flat), I have insurance thru State Farm, there are dozens and dozens of good companies. You can look at Consumer Reports magazine to find out what other people think about different comapnies.

Stanley Said:

Grad student - am I a good candidate for a mortgage?

We Answered:

You can ask but you need 2 years work and tax returns to prove it, yes you are doing good but in school with no work record so they will look at it as yes it is good now, but what of the next year or so

Mary Said:

How can I lower my mortgage payment?

We Answered:

you are not going to get much lower of a rate than 6% and you will have to pay several $1000 in refi fees, so it will take tears until you even break even on those fees

You are dreaiming if you think you house is worth 20,000 more than it was 5 yrs ago - the average house nationwide has DECREASED 20-30% just since 2006.

You probably owe more than the house is worth and no bank will let you refinance more that 80% of it's value, so you probably won't be able to refi even if you have the money for teh fees

your 1200 a month payment is probably not even paying 200 a month towards the principle - my mortgage isn't much less than yours, and mine principle amount each month is well below $200 - your mortgage balance probably isn't even down to $150,000 yet and the house is probably worth less than that - maybe as low as $130-140,000. I've only owned mine 3-1/2 yrs and I figure I'm at least 20,000 into negative equity ( I bought it with zero down), but I have no plans on moving for over 10 yrs, so it doesn't matter to me right now

your property taxes are also probably included in your payment and maybe PMI insurance if you put less than 20% down payment- my pmt is just over $1200 including homeowners insur and prop taxes - I have no PMI - I was lucky and my rate is 7%, so your payment sounds about right - my mtg was about $152k, it;s down to about $146k - I pay a little extra each month

Clayton Said:

Approx how much should I set aside for TAXES if it is not coming out of my pay?

We Answered:

My question for you is:

If you don't have withholding from your paycheck, what kind of "job" do you have? No one makes 90K under the table, so I suspect you're self-employed.

If you are, you have to pay self-employment taxes above and beyond your income tax (15.3% of net business income). Along with this you will get about half of that in an income adjustment to reduce your taxable income.

Here's a tax formula you can follow:

Total income from all sources
Minus adjustments:
...employment expenses
...adjustment for self-employment tax
...student loan interest
...self-employed health insurance
...any other adjustments (bottom front of 1040)
Result is your AGI

AGI
Minus standard deduction for a married couple ($10,300)
Minus exemptions for you, hubby, and other dependants ($3,300 each)
Result is taxable income

Taxable income * 25%
Result is how much you owe

How much you owe
minus any credit you qualify for on the reverse top of 1040
minus anything you paid in during the year
plus self employment tax

Result is how much you have to pay

All you have to do is make sure that the amount you have to pay, plus perhaps a small amount for error, is deposited with your bank for taxes by January 15.

Also, I made an assumption that you'll be in the 25% tax bracket. If your taxable income will be between $74,200 and $154,800, you'll be in the 28% bracket. (Your tax will actually be a little lower than this because I didn't take the time to figure in the progressive lower brackets.)

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I find it hard to believe that you can't deduct your mortgage interest and property taxes.

If you're paying for a loan on your home, you get the deduction. Who told you that you can't have it? The only way you can really lose something like this is in a divorce settlement, and I've never seen a person get a deduction for something they don't pay for.