best way to get a lower monthly? all new to mortgage world
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I have a close family friend .Who is will to work with me on buying his old house. I am currently living in it an have been renting/living in the house for the past 10 years .
A little about me . i have been at the same job for 10 years . I make about 68k a year.
I have about 15k saved to put down. I have no debt .car is paid off . all cc are at 0 balance.
A little about the house .It is in the east bay ca, The appriser by phone said 420k on the low end 512k on the high end.
home is from the 1940's . it will need to be updated.
The owner an I have agreed to 400k. he is also willing to carry if need be . home is free an clear .
from the mortgage loan originator. My monthly would roll around to $2,600.00 a month. I think its too high ,???
So what I would like to know is . What kind of loan would be best for me to get that payment down to $1700.00
are any lending fees negotiable? Thank you
A lot of the $15 K saved will go towards closing costs.
There is no way you are going to get down to $1700 a month, you will have to pay mortgage insurance, taxes and House insurance monthly too.
I ran a "How Much Can I Afford?" calculator. Assuming no other debt at all, 1200 per year homeowners insurance, 4000 per year taxes, 15K downpayment and 30 year fixed at 3.5%, you can afford a $271K house.
Even pushing it to a 40 year fixed, which I wouldn't recommend but I know that some people use in CA just to get into the market, it's only getting you up to 312K.
While I understand this is an unusual opportunity to get a great deal in a very, very expensive market, I still think that this is beyond what you can reasonably afford.
ETA: and those numbers don't even include PMI, which you would also have to pay with that small of a down payment.
The only possible way that this could work is if the seller wanted to carry the loan and charge you well below market rates. Not sure why they'd be motivated to do that, but you aren't going to get a third party loan on this.
I make a little more than you and even $1700 would not be where I'd want to be. You always, always have to consider and plan for life's "what if's".
What if I lose my job?
What if I need a new car?
What if the housemate I brought in to supplement my income refuses to pay/leave?
Before I decided to look for homes I put a stake in the ground and said my payment (Prin+Int+Taxes) would not push me over 35% DTI; and that is after payroll deductions and a possible car payment in the future. Believe me, I'm going to sleep much better at night knowing I'll be able to tackle all of the future "what if's". And I'll be able to take vacations without compromising on location. Ocean view or parking lot view? Hmmm?
I know you are disappointed as you have been in that house for a very long time and it has become home to you. I hope you find something you love just as much in your price range.
A good question was asked about how much you are currently paying for rent. If that is comfortable then get a mortgage that has a payment in that range, if it is not currently comfortable then you should not stretch and while future raises may come so will future expenses. Insurance and taxes typically increase rather than decrease.
Yeah that's stretching way too much and likely would not qualify. $1800 rent seems way too high for that salary too.
I'm only comfortable with a mortgage around 2.5 times income or less. Most of California's cities seems unsustainable unless you are well into a 6 figure salary.
I would like to thank every one for the expensive advise for free an restoring my faith in the human race. lol lol
I will ponder lots,,but In the end... everyone here is right ( .....
again thank you to all
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it seems that the consensus is no ...(big sigh ) 
