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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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What's the math on this?
530K house, 12K taxes, first time homebuyers 3.5% down, 4% for closing costs? add insurance?
What's your best guess on the mortgage payment considering closing fees are rolled in.
I'm thinking somewhere along the lines of $3800/mo with insurance.
What kind of income would you need to get approved?
This is not for me..just someone I think is NUTS! LOL
Message edited 3/27/2013 3:23:39 PM.
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Posted 3/27/13 3:23 PM  |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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What's the math on this?
A whole hell of a lot! Well into 6 figures I imagine!
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| Posted 3/27/13 3:35 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: What's the math on this?
Based off of one of those mortgage calculators on the internet they say it is about 2800 a month for a 3% interest rate. It would depend upon whether they had any other debts (student loans, car payments, credit cards), but a conservative amount in my mind for 2800 would be 150,000 income. If their interest rate is higher, then I think they would need more. If their monthly payment is what you say 3,800 then I think they would need about 250,000 income. because at that income they might have AMT payments as well.
Message edited 3/27/2013 3:43:17 PM.
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| Posted 3/27/13 3:41 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: What's the math on this?
mortgage amount = $511,500
511K @~4% interest ~$2500/month
taxes $1000/month
insurance $100-200/month
PMI $200 (?total guess about this - no clue)
$3800-3900
If PITI+other debt is 36% of monthly income = $130K salary.
They could do a 40 year loan and would lower about $300/month so 36% of PITI is ~$115K
this is my rough math - I'm sure brokers have better algorithms.
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| Posted 3/27/13 3:41 PM |
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Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
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Re: What's the math on this?
$3,700 - $4,000 depending on insurance and interest rate. I used 3.5% interest which is what I have, and $1,500 per year insurance.
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| Posted 3/27/13 3:57 PM |
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JackiePags
They're the love of my life
Member since 8/10 1299 total posts
Name:
Jackie
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Re: What's the math on this?
Posted by Pomegranate5
$3,700 - $4,000 depending on insurance and interest rate. I used 3.5% interest which is what I have, and $1,500 per year insurance.
This is what I would guess at too...
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| Posted 3/27/13 4:58 PM |
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AKD
LIF Adult
Member since 1/12 2637 total posts
Name:
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Re: What's the math on this?
Posted by JackiePags
Posted by Pomegranate5
$3,700 - $4,000 depending on insurance and interest rate. I used 3.5% interest which is what I have, and $1,500 per year insurance.
This is what I would guess at too...
It's in this range...Add in PMI also because it's less than 20% down + insurance, etc., looking at around that amount.
For income, I'd think you'd need above 100K?
Message edited 3/27/2013 5:01:36 PM.
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| Posted 3/27/13 5:00 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: What's the math on this?
Yep pretty much what I figured.
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| Posted 3/27/13 5:16 PM |
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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Re: What's the math on this?
I would think they would need to make a few hundred k to be live comfortably with that type of payment regardless of what the online calculators say.
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| Posted 3/28/13 7:45 AM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: What's the math on this?
Posted by BeachGal
I would think they would need to make a few hundred k to be live comfortably with that type of payment regardless of what the online calculators say.
They would def not need to make a few hundred K to afford 2800-3500 mortage. It depends on Debt.
I can afford my Mortgage on my own salary and I have debt and its on the low end of that. I do nto make hundreds of K.
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| Posted 3/28/13 8:55 AM |
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What's the math on this?
Depends on the interest rate, but I think you're looking at about $3800 to $4100 all in. PMI on an FHA is likely to be between $400-$500, closer to $400.
As for salary, it depends on debt, both for debt to income and just for the practicalities of paying the mortgage. But I would guess at least $150,000 and up.
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| Posted 3/28/13 9:39 AM |
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Re: What's the math on this?
I think there are so many factors that come into play that the best thing to do is always to contact a mortgage professional that can counsel the buyer on their particular financial circumstances and whether they can qualify for a house in that range. And if they can, they need to find out the monthly payment information.
But I have never had an FHA buyer buy a house in the $500K plus range. The loan limit in Nassau and Suffolk is like $729K, so they can get an FHA loan in that amount. But the pmi would be costly, since it's dependent on the loan amount. And as of April 1, pmi is going up and as of early June, the length of time a borrower must keep the pmi is going to be changing (beyond the 5 year minimum with 25% equity). So pmi would be a heavy factor to determine monthly payment. Interest rate would also be a big factor, but again, dependent on the specific qualifications of the borrowers.
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| Posted 3/28/13 11:35 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What's the math on this?
with a 20% down payment they would need to make over $100K for a conventional- and no other debt-
the PMI/MIP on this loan would make it way too expensive - $400ish
I have a client with a similar loan FHA and her payment is $3800 a month- under the old MIP ( I didn't sell them the house- but I listed it and sold it b/c of this payment)
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| Posted 3/28/13 11:41 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: What's the math on this?
apparently she got pre approved for a loan for $530K and she earns $60K. Something ain't right. Unless she really didn't get a pre-approval and she is just delusional.
Are there brokers out there that still do this irresponsible lending?
Message edited 3/28/2013 1:04:58 PM.
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| Posted 3/28/13 12:55 PM |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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Re: What's the math on this?
Posted by Blu-ize
apparently she got pre approved for a loan for $530K and she earns $60K. Something ain't right. Unless she really didn't get a pre-approval and she is just delusional.
Are there brokers out there that still do this irresponsible lending?
Yeah, she's smoking the rock.
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| Posted 3/28/13 1:19 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What's the math on this?
Posted by Blu-ize
apparently she got pre approved for a loan for $530K and she earns $60K. Something ain't right. Unless she really didn't get a pre-approval and she is just delusional.
Are there brokers out there that still do this irresponsible lending?
she could have lied....it happens all the time- that loan wouldn't make thru underwriting and one of my lenders would not issue that pre-approval
I know I personally priced out a mortgage for a $500K condo with 20% down and my lender told me I needed to show $115K in income - with my car being paid off and no other debt
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| Posted 3/28/13 1:33 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: What's the math on this?
I know she's delusional and it's not my biz but I sit 2 feet away from her and hear it all day. I'm shaking my head silently.
It's her financial funeral.
She is doing a program for first time homebuyers and putting 3.5% down. Her boyfriend is not yet divorced, unemployed and has 3 kids. He wants it all in her name so the wife won't have a stake.
What could possibly go wrong?
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| Posted 3/28/13 3:11 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What's the math on this?
hmmmm....what could go wrong.....lol
there is no way she would get that loan ever - the payment is more then she takes home per month
3.5% down is a FHA loan- but still- it's not free money-
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| Posted 3/28/13 3:22 PM |
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peanutbutter2
Carpe diem!
Member since 11/10 5287 total posts
Name:
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Re: What's the math on this?
Posted by Blu-ize
apparently she got pre approved for a loan for $530K and she earns $60K. Something ain't right. Unless she really didn't get a pre-approval and she is just delusional.
Are there brokers out there that still do this irresponsible lending?
There's no way that's possible, and, pending some sort of miracle, I highly doubt that she would be able to afford those types of payments on 60K.
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| Posted 3/28/13 4:47 PM |
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MrsG823
Just call me Mommy.
Member since 1/11 5570 total posts
Name:
S
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Re: What's the math on this?
Posted by Blu-ize
apparently she got pre approved for a loan for $530K and she earns $60K. Something ain't right. Unless she really didn't get a pre-approval and she is just delusional.
Are there brokers out there that still do this irresponsible lending?
I do not know of any broker that is going to give your friend pre-approval UNLESS she has a co-buyer or co-signer that has a much higher income. I am in the middle of trying to buy a house with a FHA mortgage that is in the same price range and even with low debt to income ratios 60K is not going to be enough income to get the mortgage (or pay the mortgage for that matter). DH and I have a higher income and put down 5% and we still needed to have a co-signer because of DH's credit score. Also, FHA mortgages come with two different types of costly insurance...there is upfront mortgage insurance and MPI. This increases the monthly payments a lot...the upfront mortgage insurance on the house I am trying to buy is over 8K. Based on my experience the monthly payment is going to be around $3,800.
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| Posted 3/28/13 6:59 PM |
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Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
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Re: What's the math on this?
Not possible. She is lying - either to you or to her mortgage broker. Based on the facts you've provided this will never become a reality.
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| Posted 3/29/13 12:01 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: What's the math on this?
Ok, well at least I'm not delusional.
LOL.
Good luck to her.
Now she's considering a house for $450. Much better. She thinks that once her boyfriend is divorced he can then be part of the mortgage process. She can only hope that he is working at that time. But paying child support for 3 kids..oy!
Ah, this is my daily life sitting next to the clueless.
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| Posted 3/29/13 12:10 PM |
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evrythng4areason
And then there were 4
Member since 1/10 5224 total posts
Name:
Kayla
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What's the math on this?
i think even 450k on a 60k salary will be rough..unless she has absolutely zero other debt...
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| Posted 3/29/13 2:07 PM |
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