Quote:
Originally Posted by kccrow
With no down payment, you're going to get slapped with a PMI, and if it's a 0 DP it's probably going to be like 2% or more.
If you buy a home for $200k with a 6.5% interest rate, no DP s0 2.25% PMI, 15-year term, assume 3k in property tax, and 1500 in homeowners insurance, you're looking at total monthly payments of about $2,870. If you want that to be 30% or less of your income, you have to make at least $115k a year.
The only way to get where you're at is on a 30-year term and you better have money down to avoid PMI.
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Yeah, I just used a basic mortgage calculator that included the stupid ****ing PMI, which came out to like $1634/month... no down payment for simplicity, but also have no idea what's out there for first time homebuyers.
Definitely worse than I would have guessed, even though I knew it was bad.
I went back and looked in the neighborhood where I bought my first house at $90k and a comparable one down the street just sold for $190k.
