Military Significant Others and Spouse Support - MilitarySOS.com
Page 1 of 2 12 LastLast
Results 1 to 10 of 16

Thread: House Purchasing

  1. MilitarySOS Jewel
    DakotaCowgirl's Avatar
    DakotaCowgirl is offline
    MilitarySOS Jewel
    Join Date
    Feb 2007
    Location
    Home is where our feet land
    Posts
    12,453
    #1

    House Purchasing

    Advertisements
    Greetings!

    I'm curious on a few things. We are looking at purchasing a home at our next move. If it is where we think, it would be where we want to retire and we only have about 6 years left. Yes, I know we could move; but, we don't know if that is even a possibility right now.

    What I'm wondering is, the house we are looking at is $150,000. What would the payment be? I know I could look up on a calculator; but, I'm wondering, approx, what insurance, extras that I should look into calculating in it. Our BAH would be about $1,500. I want to make sure we are covered and a good ball park would help in the looking process.

    Any help that you can advise, I would appreciate.
    "Obstinacy is a fault of temperament. Stubbornness and Intolerance of contradiction result from a special kind of Egotism, which elevates above everything else the pleasure of its own autonomous intellect, to which others must bow.: Carl von Clausewitz
  2. MilitarySOS Jewel
    HisCrazyGirl's Avatar
    HisCrazyGirl is offline
    MilitarySOS Jewel
    Join Date
    Nov 2010
    Posts
    6,641

    #2
    Your payment is going to vary so much depending on certain circumstances it will be hard for anyone to tell you what your payment could be. Taxes, insurance, and interest rates all make a huge difference. We have a 3.25 interest rate, paid just under 200,000 for our house, and our payments are just over $1,000 a month with taxes and insurance. Where we live property taxes and insurance rates are more than decent so that's pretty low but I would venture to guess that in most cases your bah would more than cover your payments, especially if you have good credit.


    Also, if you have one and how much of a down payment will make a big difference.
  3. MilitarySOS Jewel
    HisCrazyGirl's Avatar
    HisCrazyGirl is offline
    MilitarySOS Jewel
    Join Date
    Nov 2010
    Posts
    6,641

    #3
    Oh and things to figure in HOA fees if that's a possibility, pest control if you'll want that, lawn care, maintenance if it isn't a new home, higher utility bills, etc.
  4. Senior Member
    villanelle's Avatar
    villanelle is offline
    Senior Member
    Join Date
    Aug 2009
    Posts
    14,787
    #4
    It is so, so hard to say. Will you have a down payment? Will you be using a VA loan? (Without a VA loan, unless you have 20% down, you'll need to pay PMI, which is basically mortgage insurance, so it is an additional cost to figure.)

    If this is soon, you can figure that interest rates will be about the same as they are now, but the rate you specifically get will have to do with many factors including your credit.

    If you put $15k down (so 10%), you'd be borrowing 135k. At 5%, which is slightly higher than the average for a 30 year fixed rate loan. For that amount, with a .05% PMI added in, your mortgage would be $725 per month. That doesn't include insurance or property taxes (which you may be required to pay monthly into an account, even though the taxes themselves are only due 1 or 2 times a year.)

    Google the area and see what property taxes are. Usually the are a % of the home value. They will vary by city, so if there is more than one city in the area, check several of them to see the range of rates. Usually, but not always, areas with better schools have higher property taxes. Also, in some places, if your home value doubles, the property taxes can double, so that's something to keep in mind when budgeting. In other areas (like CA), there is a limit on how much the taxes can go up each year, so no matter how much your home appreciates, your taxes will never skyrocket.

    Insurance is also impossible to guess it, without knowing at least the area. Details like house type matter, too. But somewhere in Florida where you need flood insurance would have rates much, much higher than somewhere relatively free from natural disasters. Google is your friend on this one, too. Or, you can call a company and see if they can give you a very rough estimate if you give them a zip code and a home value. (For your real premium, there will be a ton more questions, like the approximate value of all your furnishings, etc., but most companies are very good at helping you make informed decisions to those questions.)

    As others have said, in addition to the mortgage, look at PMI, HOA, property tax, utilities, insurance, maintenance (which can be anywhere from 5% to 20%+, depending on the age and condition of the home, and it's a cost most people understimate), and any services you might want to hire out (lawn, pool, etc.). Also add money for any changes you want to make to the house (building a fence, redoing a bathroom, new carpet, etc.) and remember that you will have spent much of your savings on the down payment, so you may not have money available to do those things. Also, remember that if $150k is the selling price, you may end up paying closing costs. Many people include in their offer that the seller should cover those, but it isn't always accepted, or if it is, then often the price is just increase. So you'd pay $153k for for that house, with $3k going from the seller toward your closing costs. That allows you to basically finance the closing costs into your loan. But then you need to bump of the loan amount accordingly.
    Science always wins over bullshit. ~Dick Rutkowski
  5. Quis custodiet ipsos custodes?
    Tojai's Avatar
    Tojai is offline
    Quis custodiet ipsos custodes?
    Join Date
    Sep 2009
    Location
    St. Pete FL
    Posts
    30,026


    #5
    I quote people all the time for homes they are maybe going to buy, so if you want to get a quote you should be able too. All companies are different but I don't think there's any that charge or have any sort of obligation just for getting a quote. If you have the address you should be able to get very close to how much insurance you'll actually be paying - I pull up the listing on Trulia and use that info. If it's on the market it'll have most (if not all) of what the insurance agent needs to give you an accurate quote.

    Depending on the state you may also have different options of what coverage you can add onto your policy, so you can have that conversation with your agent as well. For example in Texas there's several coverages you can add (mold, water damage, slab damage, etc.).

    Another thing to consider is the cost of home maintenance and repair. When we calculated our house payments we added extra to it to create an emergency fund for home repairs. So things to consider are what your insurance deductible would be but also what kind of exposures you have too (not all repairs will be covered by insurance).
  6. Senior Member
    Guynavywife's Avatar
    Guynavywife is online now
    Senior Member
    Join Date
    Aug 2007
    Location
    Maryland
    Posts
    19,294
    Blog Entries
    2
    #6
    at 4% interest and zero down, if you do a VA loan, approximately $850. Figure cost of home ownership adds 50% to that, including additional fees, taxes, insurance, etc you are looking at 1300 a month. Put another $200 a month into reserves (your own savings account for emergencies, etc) and you can safely figure $1500, BEFORE utilities, cable, internet, etc.
    If your BAC is 1500, you should be safe, If you can do a down payment, you are in even better shape.
    If you want my opinion on your relationship or life issues, just ask Villanelle!
    Quote Originally Posted by LittleMsSunshine View Post
    I think it's really funny when people come on here, and automatically assume that everyone here is a gung-ho, hoo-rah, i-bleed-red-white-and-blue, kiss-my-military-ass, people-in-uniform-can-do-no-wrong, and i'm-entitled-to-everything bitch.
    "RIP Blackie, and Whitey, New Whitey. Goodbye Poopers and Momma Beige and Lady Grey. New Blackie and the Whitey Sisters rule the roost now!"
  7. MilitarySOS Jewel
    DakotaCowgirl's Avatar
    DakotaCowgirl is offline
    MilitarySOS Jewel
    Join Date
    Feb 2007
    Location
    Home is where our feet land
    Posts
    12,453
    #7
    Thanks! This gives me a much better way to look into it.

    We are looking in Wyoming as our next station; but, who knows until we have orders. We are trying to make sure that we are not over extending us and not taking my income into play until I have a job that can help out.

    As I have never purchased before, I want to research all that I can and try not to get too many surprises.

    We aren't going to have much of a down payment (unless we can use our income tax refund.) We had been working hard to pay off debt and we accumulated a bit due to a few car expenses. Our income tax refund would cover that and give us some left over. We want to make sure we are putting money aside each month for expenses and not over do everything at one time.

    We would be doing a VA loan if possible. We haven't purchased before and this would be where we want to retire right now.

    Thank you guys so much!!!!
    "Obstinacy is a fault of temperament. Stubbornness and Intolerance of contradiction result from a special kind of Egotism, which elevates above everything else the pleasure of its own autonomous intellect, to which others must bow.: Carl von Clausewitz
  8. "If you don't like my attitude, quit talking to me"
    TrishAFSpouse's Avatar
    TrishAFSpouse is offline
    "If you don't like my attitude, quit talking to me"
    Join Date
    Jan 2011
    Location
    VA
    Posts
    12,308
    #8
    Get a pre-approval. The pre-approval will be able to tell you what your payments will be. Many states you can't even get a home without a pre-approval.

    We do not have a VA loan and we didn't have to do PMI. We just have standard homeowners insurance. So, its something to consider but may not be necessary.
    Shop around for rates. VA loan isn't always the best. I also recommend getting escrow for your taxes. It will make things much easier. So, that's another cost on top of the mortgage.

    Do lots of preplanning so you know what you are expecting.

    There are often a lot of 'startup' costs, outside the closing costs. Such as paint, cleaning, decorations, etc.

    As far as 'normal' additional costs outside the mortgage/escrow/insurance.. for us it was utilities (it was more than our rental), HOA, and home warranty (this is a must IMO). You can add purchasing of lawn equipment if you do not have any.

    There are 10 types of people in the world, those that understand binary and those that don't
  9. Quis custodiet ipsos custodes?
    Tojai's Avatar
    Tojai is offline
    Quis custodiet ipsos custodes?
    Join Date
    Sep 2009
    Location
    St. Pete FL
    Posts
    30,026


    #9
    Oh, another thing to think about is flood insurance too. It's a good idea to have it anyway, but there's been several incidents of floods causing damage in Wyoming and normally flood is excluded from homeowners policies. Your insurance company should be able to quote it for you but it comes in a separate policy (the federal government backs flood policies, and they're serviced by the insurance company). Also when you buy a flood policy there's a mandatory 30 day waiting period, so it's not something that you want to try to get at the last minute.
  10. Senior Member
    villanelle's Avatar
    villanelle is offline
    Senior Member
    Join Date
    Aug 2009
    Posts
    14,787
    #10
    Quote Originally Posted by TrishAFSpouse View Post
    Get a pre-approval. The pre-approval will be able to tell you what your payments will be. Many states you can't even get a home without a pre-approval.

    We do not have a VA loan and we didn't have to do PMI. We just have standard homeowners insurance. So, its something to consider but may not be necessary.
    Shop around for rates. VA loan isn't always the best. I also recommend getting escrow for your taxes. It will make things much easier. So, that's another cost on top of the mortgage.

    Do lots of preplanning so you know what you are expecting.

    There are often a lot of 'startup' costs, outside the closing costs. Such as paint, cleaning, decorations, etc.

    As far as 'normal' additional costs outside the mortgage/escrow/insurance.. for us it was utilities (it was more than our rental), HOA, and home warranty (this is a must IMO). You can add purchasing of lawn equipment if you do not have any.
    Did you put 20% down? Or do an 80/10 or similar loan split? Just curious because my understanding is that any non-VA loan where there isn't 20% down needs PMI. If that's not correct, I'd love to know the details, just for my own education on the matter.
    Science always wins over bullshit. ~Dick Rutkowski
Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •