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Salary = 64k (been working this job for 2.5 years)
Money for down payment = 60k
Monthly debts = $200 (car). No student loans or credit card debt.
Currently my rent is $1,000 p/m. Ideally, I would like a mortgage payment that would be around this amount.
The questions I have are as follows:
1. Based on the info above, how much would a bank be willing to loan me? at what interest rate?
2. Approx how much are the additional fees associated with buying a property?
3. Are property taxes + homeowners insurance included in the mortgage payments?
4. Since I would like to maintain the lifestyle I have now, my ideal home payment would be approx $1,000 a month. Based on this, what would you say my price range is for a property?
Not knowing what state you live in an what the property tax rate is. I would say a rough estimate of what you could get for a payment near $1000 a month including tax and insurace would be around a $200k dollar home. Putting 40k down and a loan of 160k.
I think justinbro gave you a fairly reasonable guesstimate. Real estate taxes are a variable and your desired payment is the limiting factor, because it's not hard to qualify you for twice what you want to pay.
I can pretty much predict you will buy between your desired payment and your max qualified payment of $2000 (can actually push it higher, but know there is no reason to solve for the absolute max loan amount (above a $2000 mortgage payment).
What state are you in? I can run closing costs if you give me any zip code - doesn't even need to be your zip, just one close-by in the same county.
I think justinbro gave you a fairly reasonable guesstimate. Real estate taxes are a variable and your desired payment is the limiting factor, because it's not hard to qualify you for twice what you want to pay.
I can pretty much predict you will buy between your desired payment and your max qualified payment of $2000 (can actually push it higher, but know there is no reason to solve for the absolute max loan amount (above a $2000 mortgage payment).
What state are you in? I can run closing costs if you give me any zip code - doesn't even need to be your zip, just one close-by in the same county.
Thanks for the input. I'm in New York, lets say zip code 11355. From what i've heard, property taxes in NYC are relatively low, compared to the surrounding areas?
I'll run this in the morning when I log into my work computer. New York taxes are high compared to other states.....I will find a listing in that zip for you. Your actual closing costs will vary based on selection of lender and title company, rate, property tax and date of closing.
If I remember correctly, that zip is Flushing, which means the residences in the $200-250,000 price range will probably be co-ops so monthly maintenance fees will have to be factored in to the monthly payment along with mortgage principal, and interest. (Last time I looked at condos in that area they started around $375,000 and single family homes were in the $600,000 and up range and you were lucky to find anything that cheap!)
The bad news on the tax front is, new tax property assessments came out last January and condos and co-ops were hit with much, much higher assessments than single family homes. The good news is the co- op tax abatement program was just extended for four years so that will help.
The OP may want to ask around and find a great buyer's agent in the desired area and ask them what they can expect to pay, on average, for monthly fees/taxes at the lower end of the price spectrum. (Co-op maintenance payments usually include taxes, water, heat, etc. so knowing what you are getting for that $400-600 or more a month is important when figuring out a monthly payment that is comfortable.)
I'll run this in the morning when I log into my work computer. New York taxes are high compared to other states.....I will find a listing in that zip for you. Your actual closing costs will vary based on selection of lender and title company, rate, property tax and date of closing.
Thanks for your help! It's much appreciated. I know NY as a state has high taxes, but I was told that the city property taxes are actually comparably low. I will wait for the results of your search though.
If I remember correctly, that zip is Flushing, which means the residences in the $200-250,000 price range will probably be co-ops so monthly maintenance fees will have to be factored in to the monthly payment along with mortgage principal, and interest. (Last time I looked at condos in that area they started around $375,000 and single family homes were in the $600,000 and up range and you were lucky to find anything that cheap!)
The bad news on the tax front is, new tax property assessments came out last January and condos and co-ops were hit with much, much higher assessments than single family homes. The good news is the co- op tax abatement program was just extended for four years so that will help.
The OP may want to ask around and find a great buyer's agent in the desired area and ask them what they can expect to pay, on average, for monthly fees/taxes at the lower end of the price spectrum. (Co-op maintenance payments usually include taxes, water, heat, etc. so knowing what you are getting for that $400-600 or more a month is important when figuring out a monthly payment that is comfortable.)
Yes, seems like there are much more co-op properties available than condos. I'm looking for a proper 1-bedroom place since it's just for me at the moment. Seems like i'm gonna have to up my payment to the $1200-1300 range, which I can do even if it means a little bit less spending money.
Do you know if maintenance payments also generally include electricity? Good to know that taxes, heat/hot water are included, but I feel like electricity is the big bill in the city.
In general, these maintenance payments seem to be a bit of a rip-off, but I will reserve final judgment until I know exactly what goes into them.
Please understand there are many variables here that can change these numbers. But they may help with expectations. Things that will change the numbers include: interest rate, taxes, selection of insurance, selection of title company, selection of lender, time of month and year of closing. But using the 200K sales price and 160K loan in Queens County:
I rounded up when typing, so my total won't match, but all that comes to just under 12K ($~11,960). There may be things in terms the seller would pay or does not take into consideration anything you negotiate. But I am sure others will speak up if this is way out of line.
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