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Is 1285 a high or low mortgage

Betterman31

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I’m in the final stages and doing a walk through tomorrow of my house but I’m just wondering if that’s the avg

I got a raise at my job recently so I could pay that off in a week now
 

SlowYourRoll

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It depends on where you live in a HCOL place like NY or CA , it would be considered low for just maintenance fees let alone the mortgage, whereas in a place like say in a small town somewhere maybe it's considered top range.
If you live in a HCOL place and that is the sum total including property taxes then it's a steal . Regardless congratulations on becoming a home owner
 

TeeJaazi

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Depends. This is kind of arbitrary without additional info. What’s the cost of the home?
 

RLB X

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That depends on your state and your income. Where I live that would be a very low mortgage.
 

GigiLaMoore

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What are you getting? Where do you live? What is included in the amount? How much money do you make? Your question is too general.
 

MochiMaven

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Mortgage comparison depends on the home value, the location, the amount financed, the term, and your interest rate. This is kinda like asking if $20K is a good price for a car, and we know nothing about the car or your credit. Pls provide more info.
 

FemNoire

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Does that include property taxes? How many beds/baths? Basement? How big is the property? Where I live a mortgage like that is nearly unheard of unless it’s in a really bad neighborhood but even then you still got like 10k in property taxes.

I really gotta move down south...
 

TeeJaazi

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225,000 in the south
Yes, that’s low. Does that include your taxes and insurance? How much did you put down? What is the interest rate? (You don’t have to disclose-these are just questions to help provide insight). I actually would expect the mortgage to be a bit higher than $1285 for a $225k home.
 

Betterman31

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This sounds like a 30 year mortgage. Why not get a 15 year mortgage since you can afford it??? Calculate the amount of interest you’d save for 15 vs 30 year.

(BTW is your baby mother still through with you?)

15 yrs would be a higher mortgage
 

Audacity

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15 yrs would be a higher mortgage
But you just said that you received a raise from your job and could pay that off in a week.

Don’t let American finance norms fool you into thinking taking 30 years to pay off a mortgage is normal and status quo... it’s not.
 

Alsi

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I’m in the final stages and doing a walk through tomorrow of my house but I’m just wondering if that’s the avg

I got a raise at my job recently so I could pay that off in a week now
That depends on how much you bring home after taxes and your deductibles. Also what your other bills look like. Ideally you don't want to pay more than 28% towards you rent/mortgage. Multiply your take home pay amount by the number 0.28. That should give you a rough estimate if you are paying too much. Personally I bump my number up to 35% because my other bills are so low and I have an emergency fund for a rainy day.

Again this number depends on multiple variables in you financial situation.
 

Betterman31

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But you just said that you received a raise from your job and could pay that off in a week.

Don’t let American finance norms fool you into thinking taking 30 years to pay off a mortgage is normal and status quo... it’s not.

Well it’s my first home I only plan on staying in it for 10 to maybe 15 yrs then selling it or renting out.

I will probably pay extra on the mortgage to reduce the time it’s paid off but at my own discretion
Yes, that’s low. Does that include your taxes and insurance? How much did you put down? What is the interest rate? (You don’t have to disclose-these are just questions to help provide insight). I actually would expect the mortgage to be a bit higher than $1285 for a $225k home.

It was on the closing disclosure form and the bank said it would probably be lower once I sign on Tuesday .

I got it through FHA I also received grants that paid for closing costs and down payment . Mortgage rate is 3.5 it’s 3 stories 1600 square footage with garage priced at 225,000 but the appraisal was 250,000

I got blessed to get this considering the housing market right now with people over bidding
 

Audacity

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Well it’s my first home I only plan on staying in it for 10 to maybe 15 yrs then selling it or renting out.

I will probably pay extra on the mortgage to reduce the time it’s paid off but at my own discretion


It was on the closing disclosure form and the bank said it would probably be lower once I sign on Tuesday .

I got it through FHA I also received grants that paid for closing costs and down payment . Mortgage rate is 3.5 it’s 3 stories 1600 square footage with garage priced at 225,000 but the appraisal was 250,000

I got blessed to get this considering the housing market right now with people over bidding
That mortgage rate is a bit too high. Congrats on the new home.

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Betterman31

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That mortgage rate is a bit too high. Congrats on the new home.


I thought so to and was wondering if I could change this but when I ask about it my realtor says it might go up
 

Audacity

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I thought so to and was wondering if I could change this but when I ask about it my realtor says it might go up
But it also can go down. Your realtor is not working in your best financial interest. He/she wants you to sign and close as quickly as possible in order to earn that commission. I don’t know your credit or other determining factors, but like I said, that interest rate is a little high.
 

MARY SIBLEY

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It is a townhome? Attached?

I like your mortgage on par for $225K. 1600 sq is stingy, though! I am sure this is comp for your area.

Regardless, decent size plus garage.

Just make sure your terms are right.

Congrats! :party:
 

sylver2

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Congrats on purchasing your first home.
What is the average price to rent an apartment in your area? if its about the same then u got a good mortgage payment.
 

RLB X

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I thought so to and was wondering if I could change this but when I ask about it my realtor says it might go up

Are you getting multiple quotes from different lenders? Another lender may give you a better interest rate.

But your interest rate often depends on your credit score. How is that?
 

RLB X

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Ok, that's classified as good credit. I would think you would be able to get a lower interest rate than 3.5 so if you haven't already I would suggest shopping around to see if you can do better.
 

Audacity

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Ok, that's classified as good credit. I would think you would be able to get a lower interest rate than 3.5 so if you haven't already I would suggest shopping around to see if you can do better.
He’s about To close on the house. Isn’t It too late for that?
 

collegegal1997

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It truly depends on the state or city you live in
What's the cost of living in your area? the minimum wage?
I will say that's a steal in any major city in the US?
 

RLB X

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He’s about To close on the house. Isn’t It too late for that?

Ah ok, if the loan is almost executed then yes its too late. If it was only "locked" in then they can still shop around.
 

Petti LaBelle

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The insurance and interest rate are higher because it's an FHA loan.....if you can get a conventional loan, those usually work out cheaper.
 

Audacity

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The insurance and interest rate are higher because it's an FHA loan.....if you can get a conventional loan, those usually work out cheaper.
I was wondering this as well. With his income and credit- why choose an FHA loan vs conventional?
 

Betterman31

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I was wondering this as well. With his income and credit- why choose an FHA loan vs conventional?

I wouldn’t have to put down a big down payment and this is my first home I really am kind of a rags to somewhat riches person so didn’t want to use all my savings
 

Philly_Chick

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15 yrs would be a higher mortgage
If you're going for a 30 yr, ask if there is a pre-payment penalty. If not, pay it off in 15 years.

I have a 30 yr mortgage (2019), but with a recent new job & increase in salary, I'm planning to double my payments and will be done in about 15 yrs. I have no pre-pay penalty
 

Philly_Chick

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I wouldn’t have to put down a big down payment and this is my first home I really am kind of a rags to somewhat riches person so didn’t want to use all my savings

Are you putting 20% down? Try to do that to avoid PMI.

It's better to get a conventional loan.
 

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It doesn’t seem high but then again where I live— most people on average pay around $1900-2400 for their mortgage.
 

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