Your Questions About Home Loan Calculator

Donald asks…

Low Credit Score, Can We Get a Home Loan?

Hello,

My husband and I are interested in buying a house when we move to our next duty station. My husband is in the Army but being a rebellious teenager that he was, he has two repo’s on his credit from five years ago. His credit score is 529, and I do not have credit established yet. He makes 3,500 a month and has kept up on credit card payments and really no problems since those repo’s in the past. All we are looking for is about a 100,000 loan with 10,000 down (so really about 90,000). Is there’s a chance at getting an FHA loan? If not, are subprime home loans an option or should we stay clear from them?

John answers:

Applying for home loans requires you to compare the offers available from different lenders so that you can have the best deal on home loans. With the loan market being flooded with offers, you can always choose to compare the home loan interest-rates online. Lenders have provision of online calculators and quotes on their websites, which help customers in getting to know the interest-rate that would be applicable if they apply for a home loan.

Http://www.quickloans.we.bs/

Sandra asks…

How can the CDA Home Loan work for me?

How long does it take for the cda if your a first time buyer. How does that process work

John answers:

Home buying has always been a tedious process. The home buying journey is fraught with winding turns and crossroads, making buying a home complex and difficult. The complexities of the real estate and mortgage market are not easy to decipher. So, the more prepared you are before begin home shopping, the easier it will be Herein, I have assembled a top ten list for home buyers. This list is good preparation for homebuyers who are setting out on their home buying journey.

Http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html

Decide on what you can really afford Before buying the house, do a monthly budget. It is critical that you know your finances in-and-out, only then can you truly know how much home you can afford. The general rule of thumb is that you should purchase a home that is about 2.5 times your annual salary. But use our extensive online mortgage calculators to better understand your affordability. Learn how your income, expenses, and debts can affect what you can afford.

Chris asks…

I currently have a home loan and want to do major construction what can I do to just have one loan?

I was told I need to get a constuction loan so that will be an addition to my current loan and I need help please advise
Let me elaborated a little I have a one family and adding 2floor’s and renovating basement &1 floor.

John answers:

Depending on how much you have paid off on your regular mortgage, you could get a Home Equity Loan.
How much money you get for a Home Equity Loan depends on the current value of your house. If you have lived in it a few years, and it has increased in value, then you may be in luck.
They take the total value and give you a percentage on a loan depending on how much you have already paid off.

Home Equity Loans allow you to draw money for so many years but then you have to start paying it off and you need to pay it off by so many years.
EX: 10 year draw — I have 10 years to use the money but I must pay it all back within 15 years.
Problem: The interest gets confusing if you keep on drawing money here and there.
Interest paid on the loan is tax deductible.

Another way to do it, is to refinance your house (like buying it all over again) including what you need for construction purposes so you will only have one payment and that would be your mortgage.
EX: Your mortgage is at present time $100,000. You need another $25,000. So you would need to refinance for $125,000 and you can take the loan for 10, 15, 20, 25, or 30 years, so how many years is your present morgage.

If you figure out the total cost of your present mortgage and what you need, add it together, you can see what your monthly payments are using a mortgage calculator. You would need to know the interest rate also.
EX: 125K at 6% for 30 years.

Don’t go with an ARM loan ever!
Usually a low teaser rate but then higher rates will kick in and your mortage will be much more expensive. Many people are losing their houses because of this. Beware.

In either case, they usually do send out an assessor to look at your house and revalue it and consider if you are worthy of the loan.

There are conditions and restrictions with construction loans so you need to find out all specific details before considering that type of loan.

Richard asks…

mortgage payments first home?

Alright so me and the wife to be have been looking to buy our first home. We have been using mortgage calculators and everything is getting very frustrating. Where one calculator tells us one amount another tells us something completely different. Same information included in both. Friends that have homes are telling me how low their payments our but ours seem to be abnormally high. We both have good credit. Are we missing something? We we are looking to have 30 year payments around $600 month. Some calculators are telling us it a $120,000 loan some are saying it’s a $50,000. We just want to get a house without a crazy payment. HELP!!

John answers:

The best way of figuring all this out is not by fooling with mortgage calculators, but by actually applying for a loan at a bank. There you can find out exactly what you are qualified to borrow, the interest rate to consider and all closing costs including required down payment.

Generally speaking with typical escrows a $600 per month payment at an interest rate of 3.25% will allow you to borrow around $85k if you don’t have 20% to put down. If you do, you can add another 10k or so. Without escrows it would be 139k.

I am wondering if you are looking at affordability calculators rather than regular mortgage calculators. Affordability calculators only determine how much money your income allows you to borrow.

Stop guessing an apply for a loan. Talking to a lender is always step one when considering buying your first house.

Lisa asks…

Need help calculating home equity over time?

Here in Canada we still have no down payment home loans. Lets say I get $175,000 at 5 year fixed at 5.8%, 25 year. How much of the home would I actually own after the 5 years? And how did you calculate it?
Ok got it. Thanks

John answers:

Math works the same in Canada as in the US. There are dozens of Mortgage calculators all over the internet. Just google for mortgage calculators.

But the word equity means the amount of the property you own above the amount of the mortgage. So there is a second part of the calculation. You need to estimate what your house would be worth in five years. It may be worth less than it is now, or more, or the same. I doubt it will be the same- I am hoping that it will be more.

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