Northport NY Real Estate – Monthly Payments

There is no replacement for a visit to your mortgage professional for a pre-qualification on how much home you can afford. The best way to shop is to find out what your monthly budget will allow.

Consider the options that are available to you – a home that you like costs $400,000 with taxes of $9,000.00 – the payment per month with a 20 percent down payment based upon a $320,000 mortgage at 4.00 percent for 30 years. Your payment will be $2276.40 per month which includes homeowners insurance ($100.00) per month and taxes per month based on $9,000 ($750.00/mos.).

Now take the sales price of $450,000 with taxes of $5,000 – payment per month with 20 percent downpayment based upon a $360,000 mortgage at 4 percent for 30 years. Your payment will be $2417.20 per month which includes homeowners insurance ($100.00) per month and taxes per month based on $5,000 ($600.00/mos.). Although the purchase prices differ by $50,000 and the taxes vary by $150.00 per month, the payment differential is approximately $150 per month even though the second home costs $50,000 more.

You will need to get an idea of monthly costs by factoring in pricing and taxes in order to calculate your monthly budget. If your budget allows for $2500.00/month, it is hard to say that you can only afford a home for $400,000 without calculating the taxes and rates into this equation! Price and taxes along with your credit score and income will determine what your monthly budget can tolerate!

It is prudent to speak with your mortgage professional in order to have a starting point for your monthly payment. This will give you a good idea so that when you are looking at a home purchase you can determine quickly if it fits your monthly budget.

Catherine Lindstadt Realtor 631-266-6113 clindstadt@elliman.com http://blog.catherinelindstadt.com