Mortgage Help - calculating payment

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spidey07

No Lifer
Aug 4, 2000
65,469
5
76
I'm having trouble getting a good calculation on mortgages. Can anybody provide some advice or a site please?

Given the current interest rate we're thinking about moving to a much bigger house. Now I know that PMI is bad but given the rates and the fact that we're 30 and can really only increase in salary (my honey just got a fat 20K raise) here's what I'm thinking...

Take advantage of the rates and get a very nice house on a 80/15/5 loan. Right now we have too much income and taxes are killing us.

Are there any sites that can give me a good calculation on such a mortgate and take into account PMI and the 80/15/5 loan? Everything I've seen is simply P&I on a 30 year. I need to take into account the PMI and associated loan with that. I could probably calculate property taxes and home insurance.

thanks in advance for any help!

spidey
 
J

Jimbo

Platinum Member
Oct 10, 1999
2,641
0
76
Originally posted by: spidey07
I'm having trouble getting a good calculation on mortgages. Can anybody provide some advice or a site please?

Given the current interest rate we're thinking about moving to a much bigger house. Now I know that PMI is bad but given the rates and the fact that we're 30 and can really only increase in salary (my honey just got a fat 20K raise) here's what I'm thinking...

Take advantage of the rates and get a very nice house on a 80/15/5 loan. Right now we have too much income and taxes are killing us.

Are there any sites that can give me a good calculation on such a mortgate and take into account PMI and the 80/15/5 loan? Everything I've seen is simply P&I on a 30 year. I need to take into account the PMI and associated loan with that. I could probably calculate property taxes and home insurance.

thanks in advance for any help!

spidey
Click to expand...


If you are being charged PMI (Private Mortgage Insurance) on an 80/15/5 Conventional, you are being ripped off. There is NO PMI on LTVs <80%. :) (This assumes that you are not doing weird AITD stuff).

Are you sure that you did not phrase the question wrong? ;)
 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Thanks Jimbo.

I plan on putting 5-7% down, financing the other 13-15 percent as an equity loan, and 80% @ 30 years. So maybe 80/15/5 is not the right way to put it but all my buddies in the financial industry say to do this instead of pay PMI.

This will be our second house BTW.

I don't want to throw out numbers but let's assume we have a 200K house and want to puchase a 350K house.
 
J

Jimbo

Platinum Member
Oct 10, 1999
2,641
0
76
Originally posted by: spidey07
Thanks Jimbo.

I plan on putting 5-7% down, financing the other 13-15 percent as an equity loan, and 80% @ 30 years. So maybe 80/15/5 is not the right way to put it but all my buddies in the financial industry say to do this instead of pay PMI.

This will be our second house BTW.
Click to expand...

OK, got it. I own a mortgage company, so I was a little surprised. :)



 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Any thoughts on taking advantage of current rates and a 80/15/5 loan/mortgage? How about a calculator or are you fishing for business. ;)
 
J

Jimbo

Platinum Member
Oct 10, 1999
2,641
0
76
Originally posted by: spidey07
Any thoughts on taking advantage of current rates and a 80/15/5 loan/mortgage? How about a calculator or are you fishing for business. ;)
Click to expand...

Not HERE! :Q ;)

When you say second home? Do you mean a vacation residence?
 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76

No, this would be our only residence.

Goal: Take advantage of current rates, get a very nice home, reduce taxible income.

Pros - great rates, opportunities like this don't come along often as I predict rates to go up 2% by July, house we've dreamed of.
Cons - risk of housing market bubble, could lose some but not much...taking a 20K hit for 4 years is worth the risk, not enough liquidity for 20% down.

There's a whole bunch of factors saying this isn't a smart money move, but DAMN! the rates and payments are so low. We're going seriously looking tomorrow and would like to get a good price range in mind as we have to consider "can we afford it if one of us loses our job?" Given current economy I feel that is a smart constraint.
 
J

Jimbo

Platinum Member
Oct 10, 1999
2,641
0
76
Ok, now I have a better understanding of what you are doing. ;)

Why don't you go FHA?
 
vi edit

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,345
126
It goes as high as $327,750!
Click to expand...

I might be confusing it with some other first time buyer programs then. I just know that here in Iowa, the "FHA" loans only applied to houses costing up to about 90k and you had to make under a certain income which was around 75k.
 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Mortgage limits for Jefferson County, KY are too low.

Here's the scoop:
we're looking at a $280 - $300K loan

We want to see if we can mortgage 20% borrow 15% and put 5% down.

Perfect credit; low debt; very good income.


 
J

Jimbo

Platinum Member
Oct 10, 1999
2,641
0
76
Originally posted by: spidey07
Mortgage limits for Jefferson County, KY are too low.

Here's the scoop:
we're looking at a $280 - $300K loan

We want to see if we can mortgage 20% borrow 15% and put 5% down.

Perfect credit; low debt; very good income.
Click to expand...

As long as your income to debt ratios are within limits, that is a no brainier.

 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Jimbo,

Hi, this is Spidey's wife. Here's my spin on this. First of all, I love our house. The only way I will entertain this notion of moving (sorry hunny) is if we find the 'perfect' house for us for the next 8 plus years. What my concerns are centered around being about to run off on vacation whenever we like, getting the cool toys, etc.. We are definitely within the equity-debt ratio required for the banks. If fact we are about 3-4 times the amount.

What I really want to do is work through the numbers to find our what the payments will be based on 2 options.

1.) doing the 80/15/5 option where we mortgage 80%, finance 15% (home eqity, I assume) and put 5% down.
how long is the 15% portion - 5 years, 10, 15?
2.) Putting 5% down and dealing with PMI until we get 20% equity in the house.

What mortgage company do you own? How competitive are you in our market? Can we talk 'off line'?

What I want to do is limit 'Captain America' here to a price range. I don't what to look at the $400K homes if it will put us in the position of sacrificing lifestyle. We like toys. We don't like to limit the hobbies and toys. And unfortunately, when those get limit, I am the one who should have limited the scope. (Silly, but he won't deny it either. hehe)

I'm the one 'in charge' of the budget and the finances - not completely of course, but I'm the one who organizes it. I want to make sure he can still get his toys, we can buy food, clothing, diapers . . . you know the drill.

It's not a matter of paying for a house --- it's paying for all of the toys and the whims of the day.

 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
well, still no luck. Can't seem to calculate payments on a 80% mortgage and financing another 15% with 5% down.
 
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