New buyer, how much to expect to $ (Gilbert: 2nd mortgage, credit rating)

[jwking]

I've been living with people for a long time. I have now been looking at buying my first house for about 3 months now. I'm looking on buying a house in Gilbert for about 250,000. I'm bring in alittle over 3,000 a month after taxes are takin out. I have no credit cards and my car is almost paid off. so I think I'll be able to live alone. Can anyone tell me that lives around there that paid about the same tell me what I can plan to spend every month on just house bill.. so house payment, gas, cable, internet, electricity etc. what is the total you pay each month to live? I'm guessing it will be around 2,100. Will I be broke?

thx you very much

[sablebaby]

If you don't put any money down then you are probably realistic at $2100 for all your bills (house, gas/elect, phone, taxes, ins, etc). With $900 left over for car payment, gas for your car, food, car ins, anything else, I would say you will be strapped for money! It's not fun. It's good to have some money for emergencies when it comes to owning a home. You may need to replace something, which happens all the time. I sometimes wish that we were still renting and paying $1000 bucks less each month. Oh how nice it was to have that money in the bank! But, it is motivating me to make more, so in the end it will be worth it.

[63ragtop]

A $250K loan at 6% fixed for 30 years is about $1500/month. Add $200/month for taxes and insurance. Maybe $300 average for other household bills like electricity, water, etc.? Add $100 in there for misc. household expenses and you are at your $2100 guess. I'd even add another couple hundred $ just to be safe. A couple hundred for food, a couple hundred for entertainment and you are getting pretty close to $3K.

Plus all the expenses that crop up when you buy a house like wanting new furniture, doing landscaping, or just general repairs on the house. You might be broke.

[MotleyCrew]

Shea Homes is advertising a new build community in Gillbert called Seville- La Quintana. I have not been out there and wonder if it is out on the outskirts of Gillbert. The smallest home is $199K. The payments with nothing down on that would still be around $1,400 (6% interest) (including taxes/ins). That would give you a little more grocery money, but depending on where you drive to work, that could chew up your $$ pretty fast. How about looking at a town house in that area? Best of luck.

[jco]

jwking, you'll also want to talk to a professional. When we bought our first house, the loan required that our debt payments (i.e. credit cards, car loans, mortgage, other lines of credit) didn't go over a certain percentage of our income. I can't remember what it was.

[jco]

I forgot to add that if you don't put 20% down, you'll pay mortgage insurance as well. Mortgage calculators don't always add this in.

[TurcoLoco]

Originally Posted by jwking

I've been living with people for a long time. I have now been looking at buying my first house for about 3 months now. I'm looking on buying a house in Gilbert for about 250,000. I'm bring in alittle over 3,000 a month after taxes are takin out. I have no credit cards and my car is almost paid off. so I think I'll be able to live alone. Can anyone tell me that lives around there that paid about the same tell me what I can plan to spend every month on just house bill.. so house payment, gas, cable, internet, electricity etc. what is the total you pay each month to live? I'm guessing it will be around 2,100. Will I be broke?

thx you very much

I am in a a very similar boat myself so I feel for your concerns. Here is my $0.02's worth as an addition to what others said: The guesstimation some gave you are fairly accurate so you might consider going for a cheaper house ($200K or less) or perhaps a townhouse/condo? Townhouses and condos have association fees which could be couple of hundred dollars or more a month. It would include home owner's insurance but not the taxes.
Mortgage Insurance that jco mention is really not an insurance for you or your property but it is an insurance for the company giving you the loan. Conventional loans cover 80% of the sale price, if you can't come up with the entire 20%, the balance will convert into another loan to insure it hence the 'Mortgage Insurance' (for the Bank that is giving you the 80%). simply put it is a 2nd mortgage.

How much downpayment you put and also your credit ratings are two very important factors in determining the rate you will get on the loan. If you even qualify for one to begin with. This is especially true if you are a first time buyer. Income and credit are the most critical factors, you also want to have enough cash in the bank to cover the loan/escrow fees, escrow is likely to require you to have at least one month of mortgage payment in the bank and/or half a year's taxes paid. It might be a little different there. Also look into the area you are going to buy the house, if a have one that you got your eyes set on, talk to the neighbor's to see if there are any additional fees, expenses there might be that you would otherwise overlook.

Final note, you might consider getting one or two roommates to help you with the mortgage payments. You would still be leaving with others but since it is your place, you would have the full control and be able to kickout anyone that you don't want. If tis is something you consider, do legal contracts with strangers renting the room, ask for deposits for at least half a month, etc. to cover your back. I have lived with roommates for many years so I have seen all types as well...


Good Luck to you!

~TL