i got a quote of 7.75 interest rate on a 30 yr.conforming fixed home loan(for $45,000)and he told me it would be like 390 a month, not including tax and insurance. when i go to a mortgage calculator on the internet and type in 7.75%, 45,000 loan, and $0 down payment it says around $250 a month. can anyone tell me more about how this works, thank you
Asked by:summer
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Most internet calculators are only going to give you the cost of the loan itself, not the taxes, pmi, and insurance. If you look for a good one that will let you estimate all those, that will be the most accurate. But truly, your best option would be to contact a mortgage company and get a honest to goodness good faith estimate.
you need to ask your lender this. and make sure he/she gives you the answers until you fully understand it. they can and will try to skirt the issue.
There are some factors the online calculators don’t take into account:
1) Credit Score
2) Credit History
3) Debt-to-Income Ratio
4) Other Property/Assets
5) 2-year Financials
several things could be happening here
your lender could be including private mortage insurance if you don’t have 20% down and the lender requires it
also, the lender may be including fees and closing costs into the loan, which could run into thousands of dollars
be very wary of any loan where all costs are not disclosed to you in a truth-in lending statement, and if a lender or broker makes promises to you or tells you to disregard any truth-in -lending statement you do get
That $250 a month number doesn’t make any sense. The P&I payment for $45,000 for 30 years at 7.75% is $322.39 a month. You would need to add in PMI, taxes and insurance to get the actual payment from there. Is is possible that the $250 was for an interest only loan or something special like that?