Your Questions About Home Loan Calculator

Sharon asks…

How does it work to buy a house? Specifically….(see sub questions)?

1. What percent less than the asking price should you offer, and what’s the best technique to negociate? (ie: offer less due to having to furnish the house, or buy appliances, etc?)
2. When you get a home loan, can you pay for interest plus pay toward principle if you overpay?
3. What’s the best way to calculate monthly payment? (I’m looking at $160,000 home, with 6% interest rate, and $3600 in property taxes…..what would I be paying monthly to pay for all these things together?
4. How do you get your closing costs paid for? I hear all the time as part of the deal they pay your closing costs, how do you do that?
5. When you first take out a loan, how much is the closing cost?
6. Is 10% down a good amount? or am I better off putting less down and having more money in the bank?

Thanks for your help!!
I understand that home owners don’t have to pay for you to funish the home, but perhaps it’s a bargaining chip. I simply want an answer to question one as to what is the best way to negociate?? ie: if the home I’m looking at is listing for $160k, what should I offer? $148k and expect them to counter offer for $153k, etc? I don’t need to be told I’m an uninformed buyer like the first person to answer it. I KNOW I’M AN UNINFORMED BUYER, that’s why I’m asking questions!!

John answers:

The best answer to this question is to find a good buyer’s agent.

1) Depends upon the local market at the time
2) Depends upon the loan you end up with. Some loans have prepayment penalties which are triggered by the payment of one extra dollar. Some have prepayment penalties that aren’t quite so aggressive. The best ones have no prepayment penalty at all.
3)Any loan calculator will tell you this: $160,000 at 6% with a thirty year amortization is $959.29. But you’re not going to finance the entire purchase with one loan, or if you do, your rate will be much higher.
4)It’s got to be part of the contract. Get a good buyer’s agent before you hurt yourself. Please.
5)Depends upon the lender and the competition. Talk to at least six good brokers. My website has a list of questions to ask.
6)10 percent down is more than most first time buyers have these days. It depends upon your situation, how much you have left, the condition of the property you buy, and many other things. Your financial advisor can halp with a lot, but you need professional advice from real estate professionals as well. Hire a good buyer’s agent. Talk to several brokers.

There’s nothing around here that cheap. I stand to gain nothing by telling you this. Get professional help. There’s a technical name for those who think they can work the transaction just as well themselves: Suckers. I hear all the time from people on their first transaction who don’t want an agent. But those with hundreds of transactions under their belt won’t do anything without an agent responsible to them. Guess who does better in real estate?

Sandy asks…

How can I get bank of America to help me refinance my home loan?

They are not the servicer, but they are the investor of the loan. I’m current. They took tax payer dollars to stay afloat. I believe they should help me.

John answers:

Remember, when you re-fi, you have to pay closing costs all over again.
This can easily add thousands of dollars to your loan.
Google “should I re-finance calculator”.
Money Magazine stated to only re-fi if you can make your loan term shorter, know that you will be in the home for 5 to 7 years, and if your interest rate will be 1.93% lower.

You may be better off putting all the money you would pay in closing costs into the principal of your home.
.

Daniel asks…

how to calculate your monthly morgage payments with the rate your given?

I know I should speak to my loan office about this but my appointment isn’t until tomorrow. So basically anyone who know about home loans I would appreciate your info. I am looking at a house which is $170,000 with the rate of 4.7. I know there is also tax and insurance, but how do you calculate it using onlt the price and rate?
Sorry…30 year

John answers:

You cannot calculate the full monthly payment without knowing what your taxes and insurance are going to be. You can look up the taxes for the home on the internet… The insurance you can estimate, but you’ll need to call around to find out what your insurance costs will actually be. If you’re putting less than 20% down, you’ll also have to pay pmi (private mortgage insurance) each month (average is $50 – $80 each month).

You can use a mortgage calculator. I used: http://cgi.money.cnn.com/tools/mortgagecalc/ and estimated your taxes and insurance. Since you didn’t list your down payment, I assumed 10% (meaning that you’re putting 17,000 down). This calculator includes an $80 monthly pmi payment since you put less than 20% down. Your estimated monthly payment in this case would be $1,152.68.

Sandra asks…

What is the best thing to do with a house that won’t sell? Refinance, home loan, or line of credit?

I want to use my home equity if it won’t sell and I will need to use some of it to make payments, so I am not sure what my best options are….a little help, please….ha ha ha

John answers:

You cant sell at your current price but want to increase the price you will need to get out of it by borrowing more money against the home. Let me get a calculator, doesn’t add up

Had a pair in my office last week who thought they could just take out a large loan against a home they were living in now to buy a cheaper home and let the first one foreclose so they owned the second one free. I took 3 asprin after that.

Joseph asks…

With interest rates being as low as they are, how much of a mortgage payment can I expect?

I owe 61K on house I got through divorce settlement and want to consolidate that loan with a home improvement loan with a balance of 12k. Then I want to refinance for a 25 to 30 year loan. Roughly, what can I expect as a monthly mortgage payment? I am hoping I can consolidate and refinance. If so, a smaller monthly mortgage payment would work best with my budget.

John answers:

The interest rate you can get will depend on how
credit worthy you are. If you have a bad credit
score, the rates probably won’t be that great.
The actual value of the home will also be a big
factor… E.g., if the home was worth 250,000
versus if the home was worth 75,000. Below
is a link to a fairly good mortgage calculator.
Plug in your numbers and it will tell you what
the monthly will be. It also shows you what
it would be if you paid bi-weekly (which is a
VERY good idea — you end up paying much
less on the interest).

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