Yes, this is especially useful when you’re out on the weekends with your real estate agent looking at houses and you can’t get reach your lender on the weekend. Best possible way to determine your house payment is by using an equivalent of every $100,000 borrowed
Here’s the math:
For every $100,000 in purchase price assume a monthly payment of $725 per month. Nearly everybody has an iPhone, Ipad or some portable calculator on their smart phone or tablet they could easily give them a depiction of how much payment they can take on based on a certain priced home they are considering buying.
$100,000 $725 per month
$200,000 $1450 per month
$300,000 $2175 per month
$400,000 $2900 per month
$500,000 $3625 per month
Each increment in $100,000 is equivalent to $725 per month in principle interest taxes and insurance, a worst-case scenario.
Why these home buying calculations provide the “big picture”
These calculations provide the big picture because it estimates a worst-case scenario meaning your actual mortgage payment when your lender gets back in on Monday you’ll find is probably going to be lower but for the purposes of making an offer it’s always good to play things conservatively that way you have no changes or surprises during the home buying process.
Some additional calculations to be aware of
For every $50,000 in purchase price use $362.50 half of the $725 per month figure for determining mid-purchase price ranges.
For Example house that’s $350,000 would be a monthly payment of $2537 per month. That’s using $362.50 added to $2175 per month which is computed by multiplying $725 x 3 for every $100,000 purchase price sought.
If you are thinking about buying a home in Sonoma County, or Santa Rosa California or any of the surrounding California areas, contact Scott.Sheldon@nafinc.com, for a complete loan qualification breakdown including qualifying analysis.