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limommer
LIF Adult
Member since 2/10 1073 total posts
Name:
Meredith
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What price range should I be looking in with a down payment of...
$150,000? I really don't want to spend it all. But what price range should we be looking in to live with breathing room?
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Posted 4/26/11 7:20 PM  |
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ThePs1023
LIF Toddler
Member since 8/10 377 total posts
Name:
Rachel
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Re: What price range should I be looking in with a down payment of...
if you put 20% down on a 600k house you'd need 120k before closing costs. Closing costs could be another 20k.
HTH!
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| Posted 4/26/11 7:28 PM |
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julesrbf
Baby Girl
Member since 6/09 3882 total posts
Name:
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Re: What price range should I be looking in with a down payment of...
You should probably not base your price range on your down payment amount, but rather what your income is and how much of a mortgage you qualify for. From there, then you can figure out how much per month you are comfortable paying - doesn't necessarily have to be the full amount of what you qualify for.
HTH! Good luck! 
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| Posted 4/26/11 7:43 PM |
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Melmel821
Love being a mom!
Member since 5/08 2776 total posts
Name:
Melanie
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Re: What price range should I be looking in with a down payment of...
You should figure out what a comfortable monthly payment would be that would allow breathing room. They recommend 25-30% including taxes, insurance and mortgage principle.
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| Posted 4/26/11 7:54 PM |
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Re: What price range should I be looking in with a down payment of...
I agree with previous posters who advised you to look at the monthly payment number, not the overall price of a house.
Unless you are paying all cash for a house, the price is really irrelevant. What matters is what you can afford to pay each month.
I recommend talking to a lender or mortgage broker to find out what you qualify for in terms of a mortgage. They will look at your debt to income ratio, credit score, cash reserves, etc. Once you have a preapproval for a mortgage as your "ceiling," you can talk to the mortgage professional about what interest rate you qualify for, and what your monthly payment will be at various price points. Don't forget to factor in taxes, and other expenses such as homeowner's insurance.
If you know how much you can afford in terms of a monthly payment, you can work backward to figure out how mucy you can afford to pay for a house!
Let me know if you need recommendations for mortgage people!
Message edited 4/26/2011 8:06:55 PM.
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| Posted 4/26/11 8:01 PM |
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Re: What price range should I be looking in with a down payment of...
Agree w the above, also look at the monthly take home/income..the formula I was to,d is your "affordability" is your income multiplied by 3 (if combined income is 150k, them 150*3 means you shouldn't buy a home that costs more than 450K).
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| Posted 4/26/11 10:13 PM |
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bobby769
LIF Infant
Member since 7/10 253 total posts
Name:
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Re: What price range should I be looking in with a down payment of...
It all depends on your income and household budget. It's best to make a budget by starting w/ your current expenses.
Electric, heat, cell bill, auto insurance, groceries, etc...
Keep your credit score in mind.
Pull your credit report if you haven't done so yet.
My fico is a good site for your report.
You can get a rough idea on what interest rate you can expect to pay. Take a look at the chart on the right of the above site.
A very rough estimate of your monthly payment is about $100 for every 100k you borrow times the interest rate.
So if you borrow 100k at 6%, your monthly mortgage and interest payment would be about $600 per month.
You also have to pay taxes and home owners insurance.
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| Posted 4/26/11 10:39 PM |
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piggy007
Mommy of 2!!
Member since 11/08 1742 total posts
Name:
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Re: What price range should I be looking in with a down payment of...
Posted by BatGirl9910
Agree w the above, also look at the monthly take home/income..the formula I was to,d is your "affordability" is your income multiplied by 3 (if combined income is 150k, them 150*3 means you shouldn't buy a home that costs more than 450K).
I agree with this. You don't want to struggle because of your home. It's not worth the stress imo.
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| Posted 4/27/11 9:16 AM |
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rojerono
Happiest.
Member since 8/06 13803 total posts
Name:
Jeannie
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Re: What price range should I be looking in with a down payment of...
Posted by julesrbf
You should probably not base your price range on your down payment amount, but rather what your income is and how much of a mortgage you qualify for. From there, then you can figure out how much per month you are comfortable paying - doesn't necessarily have to be the full amount of what you qualify for.
HTH! Good luck!
Totally agree. We had 100+ to put down and my bank was ready to hand us ridiculous amounts of money. If I had taken even half of what they offered as a mortgage I'd be homeless right now. We settled on a house in the high 300's/low 400's because with interest rate and insurance plus other expenses it was what we could afford.
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| Posted 4/27/11 3:31 PM |
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