First Times Buyers
Posted by Joseph Epifanio on Wednesday, August 15th, 2012 at 2:20pm.
1 Response to "First Times Buyers"
Megz wrote:
First, PMI only kicks in if your mortgage is more then 80% of the sales price. So 20% down would mean no PMI. You will see some peostrs here saying you need to put 20% down. The MOST IMPORTANT thing to remember is can you afford the monthly payments. The amount down is NOT as important as the monthly payment. I highly recommend that your TOTAL mortgage payment (loan + taxes + insurance + PMI (if you have it)) does not run more the 25-28% of your GROSS MONTHLY INCOME. And this is based on a 30 year fixed rate.Your lender will tell you that you can go up to 36% of your gross income. But this is only going to case problems down the road. DO NOT BECOME HOUSE POOR.If you only have 15%, you could do a 80/5/15. This is a first mortgage of 80%, a 2nd mortgage of 5% and 15% down. Lenders also do 80/15/5; 80/20 and 80/10/10. These are GOOD programs.In regards to the first time program. If really depends on the program. Everyone is different. You need to talk with a lender to see the requirements of the program. Posted on Monday, August 27th, 2012 at 4:06pm.