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Ken Said:

Payment Calculators?

We Answered:

Property taxes differ from state to state and county to county. Same for insurance. Try to find a website for a local Real Estate Agent and take a look at some listings in your area. The listings should give you an idea of what property taxes are like in your area. Check with your local insurance agent for insurance rates. As you may or may not know, most mortgages will include in the monthly payment an amount for the taxes and insurance. Your monthly payment will consist of taxes, insurance, principle & interest. The principle is the amount that is applied to the amount you borrowed. The intererst portion is based on what kind of interest rate you got for your loan. Talking to a mortgage broker or bank is essential before looking at properties.

Salvador Said:

Can I afford a house?

We Answered:

When purchasing a house (or condo), a roommate would not matter to the mortgage company. Your income and ability to repay the loan, alone, would be taken into account. Loans are difficult to come by these days, so an excellent credit history and job stability is important. Your pending raise would not matter to them, either, as it has not yet occured, is not guaranteed and you should not count on it either (with the current economy).

In addition to your mortgage, there are property taxes, insurance coverage and maintenance. In a condo setting, you are likely to have to pay a mandatory homeowner's association fee as well, and that goes for most neighborhoods. General maintenance includes lawn care, cleaning, etc. but there are also frozen pipes, broken appliances, water damage from a leaking toilet, etc. that you are responsible for as the homeowner. Utility bills are another expense.

If I were you, to find out if you can REALLY afford a home mortgage, I would put the $750 a month into a special savings account you open for this purpose only. Start doing this now. It will let you see if you can afford that payment, and when you go to apply for your loan you can show financial records that you have been making these "payments" (make them on time, each month, as if you were making an actual mortgage payment). I realize that you are probably now paying rent somewhere, BUT you can count the additonal expense as that which you would likely incur with insurance, fees, and maintenance. Cut back as necessary. This type of "test" will also assist you in saving up for the down payment.

You need to see if you can do it on your own, completely, because not only would it not matter to the mortgage company if you had a roommate, but you can not count on a roommate. MOST people go into it thinking it will work out, but often it does not. Someone- in this case, you- would be left with responsibilities that can effect you for a lifetime if you are unable to meet them, while that person moves on without any lasting effects.

Harold Said:

Can somebody give me a clue on my mortgage payments?

We Answered:

I get 739.40 for principal and interest. That would make the taxes and insurance about 274.72. Does that sound about right?

I don't know why you would be using 6.5 as the rate if it is 6.75.

You are right. It would cost too much to refinance at this point even if you could. It would be years before you would actually be saving money.

I would focus on paying down the 2nd. The rate on the 1st is not that bad. If you add abut $80/month to the payments on the 2nd, you will pay it off in 15 years. If you could pay $500/month on it, you could pay it off in less than 10 years.

I hope this helps.

Jenny Said:

Do home affordability calculators realize how much homes cost in westchester ny?

We Answered:

Don't use a computer program to see how much a loan officer will qualify you for.

Talk to a local and experienced loan officer. Not someone over the internet- not someone out of town that your local bank sends you to- but a local experienced loan officer.