What’s Your, No More Than Price?

Straw that breaks the Camel's back

Straw that breaks the Camel’s back

Knowing what you can comfortably afford to pay monthly will help you determine what sale price of a home you should searching.  I like to call this, “The no more than price.”  Rather than telling a Realtor to search homes for sale in Palm Coast between $100,000 and $150,000, just tell them your no more than price. Once you establish your maximum threshold, searching for homes that are not more expensive will take the anxiety out of it, because you know no matter what, you can easy make the payment.  Make sure you payment is inclusive  of all your real estate related obligations, otherwise you will be looking at homes priced higher than you really want to pay, in terms of a monthly commitment. See below what needs to be packed into your payment; otherwise you will  be setting yourself up for sticker shock when it’s too late – after a contract has been executed.

A Bunch Of Little Payments Rolled Into One

For most homeowners, a mortgage payment usually encompases serveral smaller payments.  These include:

  • Principal payment
  • Interest payment
  • PMI (Private Mortgage Insurance) payment
  • Property Tax escrow
  • Homeowners Insurance escrow

All these payments and escrows are paid in one monthly installment payable to your lender or credit union. You make one payment (“your mortgage payment”) and your lender will divvy up the payments and apply them in to the correct holding (escrow) accounts for you.  If your mortgage is based on a fixed rate the first of these three payments are usually going to remain the same for the entire term of the loan.  Even if you pay extra towards your principal and owe less, the payment amount the lender asks for each month will remain the same only the time to pay off your loan is reduced.  Some lenders will drop PMI once your loan has at least 20-30% in equity but it will not be automatic and is usually done only if requested.  Your escrows; property taxes and homeowners insurance can fluctuate from year to year AND will affect either your monthly payment for the following year or you may have the option to pay (make up) the difference  if more.  If your escrows go down, you will get a credit but it is unlikely your next year payment will be less.

Why Choose FHA?

  • Only 3.5% Down Payment
  • Less than Ideal Credit
  • Streamline Refinance

Why Choose VA?

  • Veteran or Active Duty
  • No Down Payment or PMI
  • Streamline Refinance (IRRRL)

Why Choose Conventional?

  • Larger Down Payment
  • Strong Credit Scores
  • Larger Loan Amounts

Palm Coast Real Estate Company | Better Buy Realty
No Gimmicks. Just Results.