Are mortgages really this low?

[captainmidnight]

Originally Posted by serena15221

On Zillow, for a $60,000 house, I'm getting estimated mortgages under $300 a month. For example, one house, even with only a tiny $1000 down payment, only costs $258 a month for a 30 year mortgage. Are property taxes bundled into this? Is this even real? What are they not counting?

Doesn't sound like that include taxes, home insurance, and insurance premium (if you get a FHA mortgage and have a down payment of less than 20% you have to pay 1.75% extra).

Taxes you pay a month depend on the area your house is located. A house assessed at $60K in the City of Pittsburgh would pay about $1360 a year in taxes while a house assessed at $60K in Mount Lebo (probably pretty rare) would pay about $1970 a year in taxes. If you pay those from escrow, that would be $113 - $164 a month in addition to the $258 principal payment. Homeowners insurance should be under $100 a month..I think I pay $70 a month for my house. All together that is about $450 a month, not bad at all still.

[Moby Hick]

It looks like Zillow's default mortgage payment calculator doesn't include property taxes (as noted by many). It also assumes a 20% down payment. You need to do the math carefully.

[BMan_152]

Originally Posted by serena15221

On Zillow, for a $60,000 house, I'm getting estimated mortgages under $300 a month. For example, one house, even with only a tiny $1000 down payment, only costs $258 a month for a 30 year mortgage. Are property taxes bundled into this? Is this even real? What are they not counting?

The $258 per month sounds about right, but only for the mortgage.. This price doesn't include taxes/insurance/PMI (you're under 20%)..
Adding taxes ($1380 assuming city of pgh), insurance ($650ish), & PMI ($35ish) will bring your total to $463 per month.. This is still a GREAT deal compared to renting..
And don't forget to factor utilities as well! (Particularly water & trash)

Also, though you may be putting $1000 down (you likely wont find a lender that accepts less than 3% aka you will need $1800 minimum), you will still need to come up with at least $3600 for all of the other closing costs:
-property taxes $1380
-insurance $650ish
-transfer tax $1200
-Appraisal $400
+ All other inspections/surveys/etc (typically $400-$600 each)

Edit:

And if this is real, what are the actual monthly costs likely to be including utilities, homeowners insurance, repairs etc.? Assuming the house isn't a fixer upper. (This particular house may possibly be a fixer upper, but I found similar ones that didn't appear to be.)

approximate utility costs.. *FYI.. these are mere estimates based on my limited experience.. utility prices vary immensely depending on the house, how many people are in it, neighborhood, etc)*
-Trash $20
-Water/Sewer $50
-Gas $60
-Electric $60
-Internet $50

Grand monthly total: $703

Also, if buying a fixer-upper, make sure it can qualify for whatever financing option you choose.. (FHA can be particularly picky about this sort of thing)

[jea6321]

Just so the OP understands, you wont be able to only put 1k down. At bare min you will be more like 3-5k out of pocket on a 60k ish house. And when you factor in pmi, home owners insurance, property taxes your monthly payment will be more like 450-600 depending on the taxes.

yes it can be incredibly cheap to live but its not 250 a month and you will want to have at least 5k cash ( would be better to be closer to 10k for reserves for when something happens) and to qualify for the loan you will need a 2 year work history and the proper debt to income ratio.

[Paul2421]

Originally Posted by jea6321

Just so the OP understands, you wont be able to only put 1k down. At bare min you will be more like 3-5k out of pocket on a 60k ish house. And when you factor in pmi, home owners insurance, property taxes your monthly payment will be more like 450-600 depending on the taxes.

yes it can be incredibly cheap to live but its not 250 a month and you will want to have at least 5k cash ( would be better to be closer to 10k for reserves for when something happens) and to qualify for the loan you will need a 2 year work history and the proper debt to income ratio.

Which is a good thing considering what got us into the housing crisis.

[Goodjules]

Also, be sure to note that your property taxes will more than likely be reassessed to the price you paid for the home within a year or so from when you purchase it. If the home hasn't changed hands or been re-assessed for many years, you could see a significant increase. I tell people to plan their budget for property taxes that reflect the current value of the home. That said, owning a home in this area is in most cases cheaper than renting. And if you're from a more expensive part of the country, like me, home prices will seem ridiculously cheap. I have a 2800 s.f. brick four-square style home built in 1900 with five fireplaces, incredible woodwork, stained glass windows and other period details. My monthly expenses are about what I spent to rent a 1100 s.f. townhouse with no washer/dryer in San Francisco.