Mortgage Calculator – How to use a Mortgage Calculator?
Question about how to use a Mortgage Calculator : I am playing around with how much ‘house I can afford”, and it seems every online calculator wants you to put in annual real estate taxes and insurance are. I am confused as to what to put in if you don’t currently own a home? Am I supposed to guess what my future homes real estate and insurance would be?
For example: I have good credit, make $7,150 / month gross. Have debt (credit,car,school) of $1,000 /mo…and it says I will be approved for a 128,000 mortgage . That seems awful low considering a 1/3 or my monthly income is over $2,300.
Answer about how to use a Mortgage Calculator : Yes you have to consider house insurance and taxes whether you pay them or the mortgage company.
Also they consider other than credit and what you have so these things have changed through the years.
They figure in monthly costs of heat, power, water, etc….
The gross pay may be confusing you too. Net pay is what you actually make and if you are single and or married they consider both .
Property taxes have skyrocketed in some states some as high as 300 a month and home insurance depending on where you live and what you have could be 100 or month or more.
Try to get a fixed rate as low as you can and also if you are a first time home buyer you can get 8000 thousand dollar tax credits and in some cases get the Sellers to pay closing cost as well. Research here and a good realtor can help you a lot. Good Luck
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