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Ha, I put my numbers into that calculator, and it said I could get a loan up to around $200,000, and that was assuming I had 2 dependants. I have 0 dependants, and my loan is half that. And when my husband lost his job for a year, I was darn glad that it wasn't any higher than it is. Want to know what happens when people buy what online calculators (or even lenders) tell them they can afford? The first time they have a financial crisis, they have to stop making payments and lose the house.
Bottom line, buy less than what the calculator or lender says you can. Personally, I'd say 50% less, but AT LEAST 25% less.
As for finding a good realtor, don't just use the phone book. Ask your family, friends, and coworkers in the area who they have had good luck with.
Ok LISTEN.. I'm taking it that the replies are aimed straight at me, and it frustrating me. If you read my post and thread title, you will see that I'm not going by what the calculator says. I'm asking what I should expect in utilities, taxes, maintenance, and any other advice for a 1st time home buyer.
Ok LISTEN.. I'm taking it that the replies are aimed straight at me, and it frustrating me. If you read my post and thread title, you will see that I'm not going by what the calculator says. I'm asking what I should expect in utilities, taxes, maintenance, and any other advice for a 1st time home buyer.
So, I took a little time to research Indiana and the going rates and prices:
I took an absolute random home from Indianapolis, Indiana @ $65,000 asking price.
Things to note about the home: "Updates in the last 10 years include: Furnace, AC, Roof, some electric"
I'm going to assume that "Indianapolis Power & Light Company" powers the home, your Natural Gas provider is "INDIANA GAS COMPANY, INC D/B/A VECTREN ENERGY DELIVERY OF INDIANA, INC.", and your water/sewage/ect is provided by "Citizens Water".
I got the rates from the Treasurer, Power Company, Natural Gas Company, and Water/Sewer website for Indianapolis, IN:
Here is what your taxes and utilities should look like on this home:
I'm going to assume, again, that you use 600 KWH (this includes the hot summers blowing AC) of power average monthly since that is about the going per hour rate of a 1200 sq/ft home on N. Gas in my opinion. (most of my single friends are in that rate bracket) and since the home has a newer HVAC system, I'm going to assume the house is efficient and you use 75 Therms of gas during the cold winters (My house used 146 Therms on the coldest month in 2011 (avg. temp of 37deg with 21 days below 30deg) heating 3800+ sq/ft).
I will lastly assume you consume 50 gallons of water daily which is about the going rate for us per head and we will average it out to 1500 gallons consumed monthly.
Home Owners Ins. = $400 Annually /12 = $33.33 Monthly(Guessed and is about right for the home size listed, but double check since things like how many tornadoes, floods, ect change this factor)
Taxes = $402 Annually /12 = $33.50 Monthly(see treasury link to property)
Power = $48.90 Monthly($11 (base charge < 325KWH) + $33.50 (500 KWH rated @ $.067 per KWH) + $4.40 (100 KWH rated $.044) for a GRAND TOTAL of $48.90)
(USING HEAT)Natural Gas =$28.71 Monthly($11.25 (base charge for the meter) + $11.90 (45 Therms @ $.2644 per Therm) + $5.56 (30 Therms @ $.1853 per therm) for a GRAND TOTAL of $28.71)
(NO GAS USAGE)Natural Gas =$11.25 Monthly(base charge for the meter)
Water Service =$15.08 Monthly($9.63 (base charge for the meter) + $5.44 (1500 gal of water * 0.133680556 (Gallon to Cubic Foot Conversion) = 200.5 Cubic Ft. @ a rate of $2.719 per 100 Cubic Ft. = $5.45 for a GRAND TOTAL of $15.08)
Waste Service =$20.68 Monthly(being 1500 gallons of water/sewage you will be in the MINIMUM bill group since the 1500 gallons (1.5*$3.5743=$5.36 + base charge of $7.75) is LESS than minimum charge specified on utility's rate website. TIER II Charges (1/1/12-12/31/12) are used. 1/1/13+ is a higher fee (TIER III).
TOTAL: $180.20 Monthly(during winter months with rates used)
TOTAL:$162.74 Monthly(during summer months with rates used)
The house listed has a newer roof and HVAC system which are your big ticket items to go faulty which would mean, hopefully, only maintenance is needed and no replacements for the next 10+ years on either.
I would throw another $200 monthly into a savings account for maintenance and repairs. That should net you $24,000 in 10 years if you do not use it for a HVAC replacement + Roof.
You should ALWAYS ALWAYS ALWAYS have 6 months of living expenses saved in a savings account for job losses and emergency expenses you are not planning on or saving for. Let that number guide your home purchase.
If you have a mortgage payment of $248.26 ($65,000 - 20%=$52,000 @ 4%) and you add your utilities and taxes of a minimum of $611.00 ($248.26 + $162.74 + $200<-for home repairs) and say your personal budget is $500 pr month for food+clothing then you should KEEP 6 months of $6666.00 (unintentional ) ($1111.00 ($611.00 + $500) * 6) in a savings account NEVER to be touched except in an emergency.
So, your "home" expenses at $611, 30% of the $611 going to home maintenance (excellent choice), 6 months of living expenses in savings..
I'd say if that is within' your budget-- GO FOR IT!
Ok LISTEN.. I'm taking it that the replies are aimed straight at me, and it frustrating me. If you read my post and thread title, you will see that I'm not going by what the calculator says. I'm asking what I should expect in utilities, taxes, maintenance, and any other advice for a 1st time home buyer.
First, take a deep breath. There is no reason to be frustrated. No one here is saying anything insulting to you, this thread has gotten quite a few helpful responses. Of course things are going to be aimed at you, since you are the originator of the thread and the one asking for help. You talked about the online calculators a lot, in two different posts in this thread, and specifically asked whether they are realistic. Answer: they are not. You also said that you welcomed other current homeowners to put in their information and see if the result was logical. That is why I, at least, answered the way I did.
Warriorfan63 had already given you an extremely detailed and helpful answer to your other questions, so I, at least, didn't feel the need to restate what he had already said. His most recent post is even more detailed. Seriously, you can't ask for a better response than that.
...You talked about the online calculators a lot, in two different posts in this thread, and specifically asked whether they are realistic. Answer: they are not. ...
I just re-read this thread. I only talked about the calculators twice; if one reads the first post's context they should understand that I'm questioning the calculator. The second time I talked about the calculators I was making fun of it, because it said I could afford a $350,000 house.
Sorry, the reason I became frustrated is because the thread looked like it was about to nosedive into people commenting about how calculators are not realistic.
Quote:
Originally Posted by Lacerta
Warriorfan63 had already given you an extremely detailed and helpful answer to your other questions, so I, at least, didn't feel the need to restate what he had already said. His most recent post is even more detailed. Seriously, you can't ask for a better response than that.
Don't even try to make me look like I don't appreciate Warriorfan's responses.
Quote:
Originally Posted by accufitgolf
Yes. Living in a an unheated garage, you need to chill out some. Wait it is winter. I expect you are already chilled......LOL
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) ($1111.00 ($611.00 + $500) * 6) in a savings account NEVER to be touched except in an emergency.
How much house can I really afford.
