close
    Desperate for a home

    how much do you need to make to purchase a $250,000 home

    0  Views: 258 Answers: 3 Posted: 7 years ago
    Tags: bella

    3 Answers

    By Kiplinger's Personal Finance Magazine


    Lenders are making it a lot easier to buy a house without the traditional 20% down payment, but you're going to pay a lot for that option. If you borrow more than 80% of the home's value, you'll usually have to pay private mortgage insurance, which protects the lender if you default on your loan. That tends to cost 0.5% to 1% of the loan value, up to $3,500 per year on a $350,000 home, or $5,000 on a $500,000 home. It's money that doesn't go toward your principal or interest.


    Another option is to piggyback two loans. If you take out one loan for 80% of the cost and another for 20% (or for 15% and pay 5% in a down payment), you can avoid private mortgage insurance. The interest on both loans is generally tax deductible, but the rates on that second loan are quite high -- now running in the low- to mid-9% range.


    If you wait to amass the 20% down payment, you can avoid these extra costs, qualify for a lower-rate loan and keep your mortgage payments much lower, which gives you a lot more flexibility in the future.


    20% of $250,000 is $50,000

    I do not know but I too woud love a home of my own although I think my goals for pricing is lower than yours. Good luck & May God Bless.

    FROM WHAT I UNDERSTAND I THINK USEALLY THAY ASK FOR 10 PERCENT DOWN, SO IN YOUR CASE IT WOULD BE $25,000. BUT WITH TODAYS ECONEMY THAT COULD CHANGE, BUT THATS THE RULE OF THUMB I WAS TAUGHT.

    dwayne1716

    HOUSE CAN BE HAD FOR NEXT TO NOTHING DOWN.THATS WHAT CAUSED THE HIGH FORCLOSURE RATE.PEOPLE HAD NOTHING INVESTED SO WHEN VALUES DECREASED THEY WALKED AWAY



    Top contributors in Uncategorized category

     
    ROMOS
    Answers: 18355 / Questions: 154
    Karma: 1093K
     
    Colleen
    Answers: 47520 / Questions: 115
    Karma: 953K
     
    country bumpkin
    Answers: 10972 / Questions: 160
    Karma: 800K
     
    jhharlan
    Answers: 9876 / Questions: 1092
    Karma: 733K
    > Top contributors chart

    Unanswered Questions

    441792
    questions
    709897
    answers
    512673
    users