It’s important to determine exactly how much of a monthly payment you can afford. Remember that as a homeowner you’ll have to include things like property taxes, home insurance, condo association fees, and other possible charges (garbage pickup, water, and sewer utilities) into your monthly payments. Remember that you will likely be making these payments every month for several years. So you want to be sure that you can comfortably make these monthly payments before deciding on a home to buy
Only you can decide what you feel comfortable paying each month. However, ALL of your monthly expenses, including your new mortgage payment, should not exceed 75% of your net monthly income. Call Cenmark Mortgage today to determine what price range and monthly payments are right for you.
Next, you should determine how much you plan to use as your down payment. A good rule of thumb is that your down payment should be at least 3.50% of the home’s purchase price. It’s important to remember that with a down payment of less than 20%, you could be required to pay a monthly mortgage insurance premium.
For buyers who plan on making larger down payments (10% or 20%) there are added incentives such as reduced rates or lower monthly payments. Even if you’re planning on making a down payment that is between 5-10%, we can offer loan programs that don’t require mortgage insurance. Our Mortgage Specialists are trained to understand and review your options with you. So it’s important that you speak with them to determine which down payment amount is right for you.
Private Mortgage Insurance is sometimes required whenever you’re outstanding mortgage balance exceeds 80% of your home’s value. Mortgage Insurance helps lenders in case of a default on mortgage loans. This additional monthly expense can vary depending on your mortgage amount and other characteristics. Cenmark Mortgage Company can provide loans with or without PMI. You should Contact Us to determine your loan will require PMI. |
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Closing Costs are the charges and expenses associated with the purchase of your home. Every home purchase and mortgage transaction will have some closing costs. You should understand and carefully consider all your closing costs. Since closing costs are usually in addition to your down payment requirement, you carefully review each cost for accuracy as well. For a list of Common Closing Costs, Click Here
As a homeowner; you’ll be responsible for paying property taxes and properly insuring your new home. Cenmark offers loans that will include these expenses into your monthly payment. This added convenience, commonly known as your escrow account, makes it simpler to plan and budget.
To accurately determine what your total monthly payments will be; simply add the annual cost of your home insurance and property taxes then divide that amount by 12. You can also use our mortgage calculator to determine what your monthly mortgage payments will be. You can add the monthly mortgage payments to your monthly escrow payments to calculate what your total monthly payment will be.
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