Mortgage Question...

[dmw16]

I know I can go online and plug an interest rate and principal into a mortgage calculator, but what about the other "stuff"?

On top of the actual payment, how much more is your mortgage (taxes, etc)? I am in Maryland if that makes a difference or if people can provide more complete info.

 

[Kelemvor]

Take whatever your property taxes are, divide by twelve, add that onto what the mortgage calculator tells you. Also add in PMI if you were dumb enough to agree to pay it. heh

 

[dmw16]

I haven't agreed to pay anything, but since this is a first home in an expensive area I will have to go with a 5% down type thing. However, I am looking into FSA loan which lets you do 3% and (I think) avoid PMI.

 

[Demon-Xanth]

Your mortgage broker will be able to figure a lot of that out for you and give you a realistic estimate.

But just as a baseline:
$195k house in California, about $2k/year in taxes and $700/year for insurance. Was able to do an 80/10 and avoid PMI, the 10 is a HELOC (fixed rate, but 8.85%) to avoid PMI. Don't forget to check what utilities will cost, including trash, water, and sewer. Not all of those are covered by taxes.

 

[kranky]

Your mortgage payment will be composed of
- Mortgage principal
- Mortgage interest

And if you have escrow, also:
- Property taxes
- Homeowner's insurance

If you have escrow, the lender probably can insist on a two month reserve, so your monthly escrow amount will be (yearly taxes + yearly insurance) * 1.167 divided by 12

The principal + interest you can get from a mortgage calculator. The taxes and insurance you have to figure out. The agent can tell you what the taxes are but you need to ask if they will be recalculated based on the selling price - sometimes they will go up immediately.

If you have PMI, add that.

 

[Mermaidman]

Property tax is public info, so you should be able to go to your locality's government website and find it for a specific address. It'll give you an idea of the amount of the tax, which is based on the government's appraisal of the property, not the actual sale amount.

At least that's how it is where I live.

 

[slsmnaz]

based on the info provided by the OP it will be $5000

 

[rasczak]

property taxes are generally around 1.25% of the purchase price of the home. Take that figure and divide by twelve. If you want your mortgage company to do PITI, the mortgage insurance is often at .22% of the purchase price of the home.

example: buy home for $200,000. $200,000 x 1.25% = 2500/12 --> $208.33/mo. $200,000 x .22% = $440.00/12 --> $36.67/mo. 208.33 + 36.67 = $245.00/mo. on top of your monthly payments.

$200,000 @ 5% for 30 year fixed = $1043 + $245.00 (PITI) = $1288.00 monthly payments if you have the mortgage ins. and property taxes impounded. If your not good with money, this would be the thing to do. If are good with money and can afford to pay the property taxes twice a year then by all means go for it.

hope this helped

 

[SearchMaster]

Originally posted by: rasczak
property taxes are generally around 1.25% of the purchase price of the home. Take that figure and divide by twelve. If you want your mortgage company to do PITI, the mortgage insurance is often at .22% of the purchase price of the home.

example: buy home for $200,000. $200,000 x 1.25% = 2500/12 --> $208.33/mo. $200,000 x .22% = $440.00/12 --> $36.67/mo. 208.33 + 36.67 = $245.00/mo. on top of your monthly payments.

$200,000 @ 5% for 30 year fixed = $1043 + $245.00 (PITI) = $1288.00 monthly payments if you have the mortgage ins. and property taxes impounded. If your not good with money, this would be the thing to do. If are good with money and can afford to pay the property taxes twice a year then by all means go for it.

hope this helped

That really depends on the area. I have a relative in Madison, WI, where taxes are high. His house is worth <$200K, and his property taxes are $5500+/yr. My house is worth well over $300K (no recent appraisals), and my taxes are ~$2100/yr.

 

[msw1382]

Well I can give you my scenario. I am closing on my home tomorrow and have a very basic knowledge but any info I found helped me so....

The purchase price on my home is $78,500 with approx $2100/yr in taxes. 30yr mortgage @ 5.75% My monthly payment works out to be around $480 +change without adding in the taxes. Add in the taxes (Escrow) and it comes to $680 +change. Taxes suck and it is something you will need to figure out before you find your price range. I could essentially have purchased a $100,000+ home for this payment but after taxes it kills me, it is expensive to live anywhere in Allegheny County in PA.

 

[dmw16]

$78.5k for a house! holy crap man, that must be nice. My rent is $1000 more than your mortgage. A condo is going to cost me about $300k and I have trouble spending $300k on what is, essentially an apartment.

 

[sao123]

purchased my home last year for 90K... The seller agreed to pay my closing costs out of pocket cash, so my loan was actually for 96K.

Payment including PMI & Propery taxes ($900 per year) for 30yr fixed mortgage is roughly $800-900.

 

[msw1382]

Originally posted by: dmw16
$78.5k for a house! holy crap man, that must be nice. My rent is $1000 more than your mortgage. A condo is going to cost me about $300k and I have trouble spending $300k on what is, essentially an apartment.

It was originally $83,500. I see the housing prices elsewhere in the US and I cringe. I mean around me there are plenty of areas that you can blow money on a house but there are also very nice areas that are reasonable. Not 2 streets over from the home I purchased there is a 1.2 million dollar home that has been for sale for about a year now. So it's a big mix.

 

[kranky]

OP, I just want to reiterate that you need to look up the actual taxes on the house. No one else's tax rate is meaningful unless they live in the same township/borough etc.

 

[Gunslinger08]

In my area, lenders usually estimate $200 a month for property taxes and PMI on an average home ($250k).

 

[Demon-Xanth]

Originally posted by: kranky
OP, I just want to reiterate that you need to look up the actual taxes on the house. No one else's tax rate is meaningful unless they live in the same township/borough etc.

Very true, msw pays a bit more for taxes than I do even though his house cost less than half of mine. California has a 1% cap assuming no mello-roos or HOA fees.

 

[dmw16]

Originally posted by: Demon-Xanth

Originally posted by: kranky
OP, I just want to reiterate that you need to look up the actual taxes on the house. No one else's tax rate is meaningful unless they live in the same township/borough etc.

Very true, msw pays a bit more for taxes than I do even though his house cost less than half of mine. California has a 1% cap assuming no mello-roos or HOA fees.

I figured, I just wanted a little more understanding as to what goes into it.

 

[msw1382]

Basically it comes down to mortgage payment (obviously), taxes and PMI if you dont put down 20%.

 

[Illusio]

Originally posted by: msw1382
Basically it comes down to mortgage payment (obviously), taxes and PMI if you dont put down 20%.

Plus insurance. (and association fees for a town house)

 

[Mermaidman]

One more thing: If you're buying new construction, the initial property tax may be artificially low because the current county appraisal is based just on an empty lot. This happened to us. The property tax was initially only a few hundred dollars. After a reappraisal, the tax jumped to $2K.