Your Questions About Mortgage Rates Calculator

Ruth asks…

How do I calculate what my new payment would be if I refinanced my 30 yr mortgage?

Current rate is 6.375% fixed
Current Payment is $1,671.15 per month
Loan Amt: $242k

I have a BA-35 calculator, but can’t remember how to use it.

admin answers:

What is the new rate?

James asks…

First time buyer…need mortgage advice (UK)?

I’m looking to buy a property currently valued at £220,000. I have used the Halifax mortgage calculator, and provided i have a £22,000 deposit, i can get a variable rate for £1,065pm.

I have a job currently with a monthly wage of around £880pm. However, my parents would be living, and contributing to the mortgage also. I would be paying £300, with them covering the rest on the proviso that when the time comes, and they are no longer with us, i will own the house, and have a tidy investment come retirement age. I am attempting this as a favour to them.

My dad earns over double what the mortgage payment would be and my mum earns roughly £650pm. So, between us we have near enough £4,000 coming in at the end of every month.

Is it possible if i spoke to a financial advisor, i could buy the property, with them contributing to the mortgage, or even have my dad sign on as a guarantor/2nd party?


admin answers:

Assuming your credit is ok, not to much debt, and you have the downpayment and everything you and your parents can certainly afford the place with those numbers. Your dad will have to sign in on the mortgage, and maybe your mother too (at least they’ll ask that she be included but you could probably swing it without her). Since they would be on the mortgage they’d have to be on the deed too so you’d be co-owners.

Maria asks…

How much do YOU pay for your mortgage? How much were you preapproved for?

I know this is a personal question, but it seems like something that could be helpful. I hear a lot of “how much can I get with such and such conditions”, and generally people will get pointed off to some mortgage calculator. They are helpful, but putting in the same stats I have gotten some seriously different advice on what I might be able to afford on different calculators.

I am going to be setting up a meeting to get preapproved in the near future, and I know that will give me a better idea of where I stand. However, I haven’t seen any questions about how much you can get preapproved for, versus how much you should actually spend. Is it generally true that you can afford what you get approved for?

Moving on to the main question. I was hoping to stop all this theoretical bologna and get to the real meat of the subject. I wanted to get some responses from real people in real situations, fill out what you can. Thanks!

1) How much were you preapproved for (amount, interest rate, term)?
2) How much did you use from the loan?
3) How much did you put up front as a down payment?
4) How much are your monthly mortgage payments (and taxes/insurance too)?
5) How much is the annual gross income of your household?
6) How do you feel that the mortgage payments stack up against your income (are you living above/below your means? are you strapped for cash, or do you think you could’ve afforded a more expensive house? or is it just right?)?
7) Please feel free to add anything else about your situation that you feel adds to the discussion!

Again, I know this is all personal information, so I’m hoping we can keep this all respectful (no knocking on people who took a mortgage too high during the boom or anything disrespectful altogether). Please respond with as much or as little information as you’d like. I just wanted to see if I could get some people to give some real world examples of how this works out, for all of us people who are thinking about buying now and are having a hard time getting any hard and fast evidence on how the system works.

Thanks, in advance, to anyone participating!

admin answers:

This is a great question and I hope a ton of people answer because I would also find this information invaluable. My fiance and I recently went in for a mortgage consultation, they pre approved us for $300,000 with a 10% down payment. I make $54,000 a year, and my fiance makes $30,000. I don’t have the other information in front of me, but we have yet to decide how much of the loan we will actually use. We are in a very similar situation and are wondering how difficult it would be to manage the full loan amount, we will probably borrow around $260,000.

Good luck to you!

Donald asks…

i make 30$ an hour. could i get a 400,000$ mortgage and buy some properties to rent out (i have a 60,000$)?

i make 30$ an hour. about 50,000$ a year. i am single no kids. i want more income so i want to get a 400,000$ mortgage and buy 4 different investment properties.(100,000$ each) from the properties i have been looking at the average income of four apartment buildings would be about 40,000$ a year and that after everything! heat, electricity, taxes everything.

i know that the banks probably wouldn’t give me a 400,000$ loan to blow on a house just for me but where i would be increasing my annual income by approximately 40,000$ by buying apartment buildings could i get the mortgage?

and i also have a 60,000$ down payment. (15% of 400,000$) and i also know that most of my profit will be going on my mortgage payment but with the extra income i would definitely be able to make the payment.

i was looking at a mortgage calculator and a 10year mortgage of 340,000$ (400,000$ – my down payment of 60,000$) at 7% interest rate would be 3930$ a month and my rent income would be 4000$ a month so i would still have 7$ profit.

i cant see why i could not get the mortgage cause i could definitely make the payments but im not a 100% sure so any info would help.


admin answers:

The way to make this work is for you to buy a 2 or 3 or 4 flat and live in the building. Otherwise it won’t work. Frequently after 4 units, even if owner occupied, you make the higher down payment and pay the higher interest rate, but check around with lenders. You need larger down payment for investment, non-owner occupied dwellings. It’s harder to get loans, there is higher down payment and higher interest rate when not owner occupied. Banks only count 65% of rental income as there could be vacancies.
FYI: Knowitall, There are wrap mortgages that cover more than one property, but doubt he could get one as a novice real estate investor.

Mary asks…

how much do you pay for your home mortgage?

Online mortage calculators seem like they are fulll of lies. I exact same info used has be from 700 a month to over a 1000 (for a loan of about 122,000). I know taxes and interest rate will change, but about how much is your loan and what is your monthly payment? I’ve hear it is about 10% of your mortgage, but I have a really hard time trusting the people that make a living off of selling homes.

admin answers:

The assumptions will change and they can really, drastically affect the mortgage payment. You have to know if they are estimating taxes and insurance or not.

Your loan of 122,000 will have principal and interest payments of $751 (for a 30 year fixed loan at 6.25% interest).

At 4% interest (not saying you can find it, just for the difference in payment) the payment would be $582. At 9% interest that loan would be $982 per month.

Taxes. Taxes can run anywhere from 0.5% of the value per year up to 4% of the value per year. It could range from $508 per year ($60 a month) up to $4880 per year or $410 per month! Insurance, depending upon where you are, could also have a huge range from a few hundred a year to a few thousand.

Then, if you don’t put down 20%, you’ll have PMI (private mortgage insurance) which could add up to another $200 a month onto your loan payment.

It is confusing and depending on what is included in the calculation, it will look very different.

Good luck!

My loan is for $260,000. I pay $1500 a month at 5.5% interest and pay my taxes and insurance on my own (they are not included in the $1500).

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