Im 18 and have a job at $9 a hour , (40 hours a week) ( i will get a raise in about 6 months)
Im going to save everything I make for one year. Each month the only money I can spend is 118$ on my credit card to try to get good credit and everything else will be in the bank. (I stay with my Grandma)
A home I want to buy will cost $64,900. The website the house was listed for sale on had a calculator automatically set.
The down payment was listed at $12,980. (Is that 20% of the home , or what percent is it?)
It is a 30 year fixed loan @ 6% interest. The monthly payment is $311.
1. Can I get that loan with 6 % interest ?
The total amount of money that i can spend on my credit card for that year is only $1400, everything else will be saved for the home.
2. I JUST GOT MY 1ST CREDIT CARD TODAY. Will i have a good credit score in time to get that loan with 6% interest and buy the house?
Im in Texas.
Is this Correct?
4. $311(monthly payment) multiplied by 12 (1 year) equals $3,732.
30 years (loan) mutliplied by $3,732 (1 year) equals $111,960.
$111,960 plus adding my $12,980 (down payment) equals $124,940.
So if i payed the house off in 30 years the TOTAL payment of everything i spent with the interest already added would be 124,940??
THANK YOU VERY MUCH!!!!!!!
1) Divide 12,980/64,900 and yes that is 0.2 or 20%
2) The monthly payment of principal + interest over 30 years is $311. You need to consider hazard insurance, property taxes, and PMI (if paying less than 20%) as part of your monthly payment also. Your monthly payment would more realistically be somewhere around $520, once you factor in those things.
3) If you have brand new credit, and less than 2 yrs work history, you will probably not get an interest rate of 6%. I think 6.5% might be a more realistic figure for you to work with for right now.
4) Do not carry a balance on your credit card. That does not help you in anyway, nor does it build your credit any better. To build your credit, use your credit card for all of your purchases during the month, and then when you get your statement – pay off your entire credit card. Each and every month – pay it off. You will simultaneously be building your credit by showing responsible use, and saving yourself interest!!!
5) If you just got your first credit card, it is probably going to take you 2 yrs to build really good credit. That doesn’t mean you won’t qualify for something, that just means you won’t qualify for the best rates
6) I think you would be able to buy a house with an FHA loan.
That’s very good of you. I’m surprise that an 18 years old can be so discipline on planning to buy a house. First you should make sure your job is steady and secured. Many people loss their job and cannot make any mortgage payment. You got your 1st credit card which is good to start build your credit score. Make sure you don’t over charge and carry balance in it. The 6% interest rate is not guarantee until you lock the rate and the interest rate changes everyday. Don’t be hurry, do it step by step. Talk to a Realtor and loan officer to get more informations on how to qualify a loan.
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1) Divide 12,980/64,900 and yes that is 0.2 or 20%
2) The monthly payment of principal + interest over 30 years is $311. You need to consider hazard insurance, property taxes, and PMI (if paying less than 20%) as part of your monthly payment also. Your monthly payment would more realistically be somewhere around $520, once you factor in those things.
3) If you have brand new credit, and less than 2 yrs work history, you will probably not get an interest rate of 6%. I think 6.5% might be a more realistic figure for you to work with for right now.
4) Do not carry a balance on your credit card. That does not help you in anyway, nor does it build your credit any better. To build your credit, use your credit card for all of your purchases during the month, and then when you get your statement – pay off your entire credit card. Each and every month – pay it off. You will simultaneously be building your credit by showing responsible use, and saving yourself interest!!!
5) If you just got your first credit card, it is probably going to take you 2 yrs to build really good credit. That doesn’t mean you won’t qualify for something, that just means you won’t qualify for the best rates
6) I think you would be able to buy a house with an FHA loan.
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Your interest rate will be higher with that low of income.
Don’t forget property tax, which is around 3% in TX.
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Your numbers look right. Remember to check into the property taxes, if they are 3% then that will be 3% of the ASSESSED value not the purchase price. Plus homeowners insurance, so add about $200 more per month to your total monthly payment for those 3 items. I am not sure if you would get 6% interest with your short credit history and low income. Figure a payment of $600 per month to cover yourself. Plus you will need savings ahead for repairs and emergencies. You may want to wait another year to be more financially stable before you buy.
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