When you buy a home, the mortgage payment isn’t the only regular expense you will have to consider. You will also be responsible for paying for your homeowner’s insurance policy as well as the property taxes on your new home. There are two ways to go about this. One is to roll them both into your mortgage payment, and pay them monthly along with your mortgage. The other is to pay them on your own. Larger Monthly Payments Adding your insurance and property taxes to that monthly mortgage payment bill means that you will have a higher monthly payment. If you are already cutting it close on your monthly budget with the mortgage alone, this could make it tougher. You should keep these two payments in mind when you make up your home buying budget so that you know what you can really afford after paying both of these monthly expenses. Lump Sum Payments Both property taxes and homeowner’s insurance can be paid on their own directly. This is usually either a yearly payment of a large lump sum or a different sort of payment plan set up by the insurance company or the county. Coming up with all of […]
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    One of the most important factors to consider when buying a new home is affordability.  As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay.  The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other essential ingredients. Figure Out How Much You Want To Borrow Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow.  This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender. Know Your Rates The next step is to determine the current interest rates for the purchase of a home.  Rates vary and may change often, so check with your lender for current rates.  It’s worth noting that the interest rates you receive will, in part, be based on your credit history.  This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated. Choose Your Loan Term Your monthly mortgage payments will […]
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