What other factors besides the cost of the house will affect my mortgage payment?

Question

I'm seeing some really reasonable priced homes (some for $15,000 even that look to be in perfect condition). Anyways, the mortgage payments on a home this cheap would be extremely minimal. But, i'm wondering what other things get tacked onto a mortgage payment?

This will be our first house so we want some info before we go to a realtor.

Thanks.

Answer 1

private mortgage insurance gets tacked on unless you put 20% down.

property taxes get factored in, too, and put in an escrow account.

your credit rating affects your interest rate

Answer 2

First off, kudos for seeing the opportunity—it’s a great time to take advantage of the buyer’s market if you’re able. To answer your question, when you get a mortgage there are just a few things that are included in your monthly house payment:

1)Your mortgage payment itself. Your mortgage payment is determined by the type of home loan you get (fixed/adjustable rate/FHA/etc.), your credit score, income, term and your down payment. A good Mortgage Banker can help you determine which type of loan is best for your situation, and help to get you the lowest payment possible.

2)Real estate taxes. Taxes are based on the county and/or city where the house is located.

3)Home owners insurance. Home owners insurance is the protection you get in case something should happen to the home (fire/burglary/etc.). Your insurance company will tell you what your insurance premium (payment) is depending on your assets.

Now, you do have the option to pay your taxes and insurance separately from your mortgage payment—in a lump sum amount, in which case you would not have to roll them into your mortgage payment. If you choose to do this, the only thing you’d be paying for every month is the mortgage payment itself. Simple, huh?

If you have any questions feel free to ask me directly. Hope this helps!

Answer 3

Try to get pre-approved for yor mortgage before you even start talking to a realtor....that way you will know what kind of house you can afford, rather than the realtor trying to sell you a house you can't really afford.

In addition to your mortgage, you would be adding on taxes, title insurance, household insurance, etc.

Of course, your time period for the loan and interest rates will be a big variable....for example a 15 year loan would have a higher monthly payment than a 30 year loan....try NOT to get an adjustable rate mortgage...too much gambling with the interest rates with those!

Remember to have cash for closing costs too---you will have to pay that separately, and always save some money for moving costs, decorating, etc.

Have fun house looking!

Answer 4

In General, its your payment habits, delayed payment can incur penalties and this will add to the cost of your mortgage payments, mostly the price of the house are fix on the value they were sold, the Realtor put some interest if you are not buying in cash, amortization interest normally run from 36 to 45% depending on how long you will amortize it.