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Alpo

Any Realtors out there?

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There's a house down the street from me for sale, and everytime me and the dog walk by at did not see the sign in the yard I wonder what the payments would be.

 

It's 158K with 1500 down. 1% down neans you still basically need a loan for $158,000. A normal 30 year mortgage should, I think, cost about 470-480 (my rule of thumb is a 30-year mortgage will come to three times the purchase price). So that would come to about 1350 a month.

 

That's my guess.

 

But I figure a realtor probably got a book somewhere, where he could turn to a page and say "yeah it will cost this much".

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Well, if I plugged the numbers into that correctly, it comes up to 1077. That ain't too bad at all. Compared to some of the rent prices I've seen around here, that's actually pretty good.

 

That "158K" on the sign was kind of scary.

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Consult a banker, not a Realtor.   Nothing against Realtors; Dad was one.  But your loan is going to come from some sort of financial institution, not a real estate agency.

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I'm not interested in buying the house. I just saw the price on the sign, which seemed high as hell for this neighborhood, and I wondered what the payments would be.

 

And like I said, I figgered a realtor would have a book.

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Guys like you use to frustrate the hell out of my Dad!  :P

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14 hours ago, Alpo said:

I'm not interested in buying the house. I just saw the price on the sign, which seemed high as hell for this neighborhood, and I wondered what the payments would be.

 

And like I said, I figgered a realtor would have a book.

Realtors do have books for this purpose

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Not sure what kind of loan would be available for 1% down.  VA? FHA?  Most conventional loans used to require 20% down.  But that was a long time ago...when I was a Realtor(R)!

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Keep in mind that that's an "estimated" monthly house payment. As you know, insurances, taxes, PMI (if required) are included in the payment. Your payment WILL increase with time as taxes and insurances costs rise.

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I have a small book it is called "Barron's Financial Tables For Better Money Management" Mortgage Payments.

In it are tables for interest rates from 5% to 21.75 % interest broken down by quarter percent. Amount borrowed from $100 to $250,000 and term from one to forty years.  

It was handy for house shopping and car shopping but it only covers the actual mortgage not any thin else like PMI and other addons.

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19 hours ago, Grass Range said:

Realtors do have books for this purpose

Most that I know use an app now.

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The books or apps are called amortization tables; they show the principal and interest breakdown per month over the life of the loan.  While your monthly payment (less taxes and insurance) may remain the same, the division between interest and principal changes each month; banks front load the interest, so you are paying much more of the interest due on the whole loan during the earlier months.  Banks know that most folks sell their homes every 5-7 years, and so they want to maximize their return (interest) on the front end.  In my mind, a gross inequity that banks have been allowed to use despite the fundamental unfairness.

 

LL

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Remember The List Price need Not be the Price you are Willing or Need to Pay.

The last House I bought was First listed for 121,000 ,,, Way over priced, then they dropped it to 92,000 ..

It sat and Sat No offers ,,,, I bought it for 63,000 ...

Just Saying ...

 

Jabez Cowboy 

 

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