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Financing your home
Unless you're wealthy enough to pay cash for your home, you'll need to take out a mortgage - a loan that you obtain to close the gap between the cash you have for a down payment and the purchase price of the home. The amount of this loan will be decided by the price of the home and your down payment. Getting pre-approved for a certain mortgage will allow you to know what price range your lender will approve and give you more buying strength.
Lenders factor in sales price and down payment, but place more importance on how much you can handle on a monthly basis. The term of the loan, the interest rate and the principal amount of the mortgage will determine the amount of your monthly payments. The higher the interest rate, the higher the monthly payments. The length of most real estate loans is 15 to 30 years. Use the Monthly Payment Charts to help you figure the loan amount you can afford. Note that you must also add property taxes, home insurance costs, and, in some cases, homeowner's associateion fees, to these figures for a realistic mohthly obligation. The payments may also be slightly higher or lower depending upon the terms of the loan (15 vice 30 years).
Mortgage Chart
The following charts can help determine - on a monthly basis - how much home you can afford. To use it, simply find the monthly house payment you can afford and read across to the nearest current interest. Where the two cross will give you an approximation of how much mortgage your maximum monthly payment will buy.
To calculate the mortgage for higher monthly payments - $3,500 for instance - combine the mortgage amounts for $2,000 and $1,500 payments. With a 9% rate, $248,564 plus $186,423 equals a $434,987 mortgage.
|
Interest Rate |
|
Monthly Payment |
6.00% |
6.50% |
7.00% |
7.50% |
8.00% |
8.50% |
9.00% |
9.50% |
10.00% |
10.50% |
11.00% |
|
$300 |
$50,040 |
$47,460 |
$45,092 |
$42,905 |
$40,885 |
$39,016 |
$37,285 |
$35,678 |
$34,185 |
$32,796 |
$31,502 |
|
$350 |
58,380 |
55,370 |
52,608 |
50,056 |
47,699 |
45,519 |
43,499 |
41,624 |
39,883 |
38,262 |
36,752 |
|
$400 |
66,720 |
63,280 |
60,123 |
57,207 |
54,513 |
52,022 |
49,713 |
47,571 |
45,580 |
43,728 |
42,003 |
|
$450 |
75,050 |
71,190 |
67,638 |
64,358 |
61,328 |
58,524 |
55,927 |
53,517 |
51,278 |
49,194 |
47,253 |
|
$500 |
83,400 |
79,100 |
75,154 |
71,509 |
68,142 |
65,027 |
62,141 |
59,463 |
56,975 |
54,660 |
52,503 |
|
$550 |
91,730 |
87,010 |
82,669 |
78,660 |
74,956 |
71,529 |
68,355 |
65,410 |
62,673 |
60,126 |
57,753 |
|
$600 |
100,075 |
94,925 |
90,185 |
85,811 |
81,770 |
78,032 |
74,569 |
71,356 |
68,370 |
65,592 |
63,004 |
|
$650 |
108,415 |
102,840 |
97,700 |
92,961 |
88,584 |
84,535 |
80,783 |
77,302 |
74,068 |
71,059 |
68,254 |
|
$700 |
116,755 |
110,850 |
105,215 |
100,112 |
95,398 |
91,038 |
86,997 |
83,249 |
79,766 |
76,525 |
73,504 |
|
$750 |
125,095 |
118,660 |
112,731 |
107,263 |
102,213 |
97,540 |
93,211 |
89,195 |
85,463 |
81,991 |
78,755 |
|
$800 |
133,435 |
126,570 |
120,246 |
114,414 |
109,027 |
104,043 |
99,425 |
95,141 |
91,161 |
87,457 |
84,005 |
|
$850 |
141,770 |
134,480 |
127,761 |
121,565 |
115,841 |
110,546 |
105,640 |
101,088 |
96,858 |
92,923 |
89,255 |
|
$900 |
150,110 |
142,390 |
135,277 |
128,716 |
122,655 |
117,048 |
111,854 |
107,034 |
102,556 |
98,389 |
94,506 |
|
$950 |
158,450 |
150,300 |
142,792 |
135,867 |
129,469 |
123,551 |
118,068 |
112,980 |
108,253 |
103,854 |
99,756 |
|
|
Interest Rate |
|
Monthly Payment |
6.00% |
6.50% |
7.00% |
7.50% |
8.00% |
8.50% |
9.00% |
9.50% |
10.00% |
10.50% |
11.00% |
|
$1,000 |
166,790 |
158,210 |
150,308 |
143,018 |
136,283 |
130,054 |
124,282 |
118,927 |
113,951 |
109,321 |
105,006 |
|
$1,050 |
175,130 |
166,120 |
157,823 |
150,169 |
143,098 |
136,556 |
130,496 |
124,873 |
119,648 |
114,786 |
110,256 |
|
$1,100 |
183,470 |
174,030 |
165,338 |
157,320 |
149,912 |
143,058 |
136,710 |
130,820 |
125,346 |
120,252 |
115,506 |
|
$1,150 |
191,810 |
191,940 |
172,854 |
164,471 |
156,726 |
149,561 |
142,924 |
136,766 |
131,043 |
125,718 |
120,757 |
|
$1,200 |
200,150 |
189,850 |
180,369 |
171,621 |
163,540 |
156,064 |
149,138 |
142,712 |
136,741 |
131,185 |
126,007 |
|
$1,250 |
208,590 |
197,760 |
187,884 |
178,772 |
170,354 |
162,567 |
155,352 |
148,659 |
142,439 |
136,651 |
131,257 |
|
$1,300 |
216,830 |
205,670 |
195,400 |
185,923 |
177,168 |
169,070 |
161,567 |
154,605 |
148,136 |
142,117 |
136,508 |
|
$1,350 |
225,170 |
213,580 |
202,916 |
193,074 |
183,982 |
175,573 |
167,781 |
160,551 |
153,834 |
147,583 |
141,758 |
|
$1,400 |
233,510 |
221,490 |
210,431 |
200,225 |
190,796 |
182,076 |
173,995 |
166,498 |
159,531 |
153,049 |
147,009 |
|
$1,450 |
241,850 |
229,400 |
|
