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Buying Your Dream Home Buying a dream home is one of the things that many people look forward to in their lifetime. We are going to explore the cost of buying a home. There are three main items that make up the monthly payment for home ownership. There are other factors, but we will stay with these. 1. Mortgage Payment 2. Property or Real Estate Taxes 3. Homeowners Insurance We will go with the theory that you will have to put 20% down in order to purchase the home of your choice. This is the general rule of thumb for lenders. Find the home of your dreams either in your locality or wherever you would like to live. INDIVIDUALLY, Attach a picture of the house. (You can copy and paste most pictures) Calculate the loan amount if you were to put 20% down. Find the monthly payment on your loan (Identify the lender and the interest rate) Find the monthly payment for homeowners insurance on your home (Include source and all needed information.
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Unformatted text preview: This may be an estimate based on projections.) Find the monthly payment for taxes on your home (Include source and all needed information) generally, you can find this information in your county website or it may be included right in the home description or advertisement. Calculate your total monthly payment. Calculate the annual income you would need to have to meet the 30% housing ratio. (Most lenders will allow you to take 30% of your gross income to go for the housing payment you calculated in the last part. Example: Gross annual income is $80000 annually; 30% would be $24000 for housing; monthly payment could be up to $2000.) Gross Income Required = (Total Monthly Payment x 12) / .30 I found a house for 80,000 The information is 820 South Park Rd 3 Bedrooms $80,000 USD Charleston, West Virginia 1 Bathroom $75. 75 /sq. foot 25304 Garage Unknown 1,066 Sq. Feet Lot Size Unknown $334/month est. mortgage Built in 1960...
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