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Eldengames OP t1_iyd1zr3 wrote

Reply to comment by Skinder506 in Trying to Buy First House But Feel Like My Loan Just Isn't Right by Eldengames

I was actually going to look up a formula to calculate it when I got the chance, I just wanted to find one that wasn't a marketing tool. I was just given the monthly payment at the highest loan amount I can take out.

For the first 12 months they cover 1% of the interest and my payment is around 500-600 but after this it will go to around 600-700.

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Skinder506 t1_iyd3mp3 wrote

Knowing what the interest rate is probably one of the critical pieces of information you need to know when deciding on a mortgage. Be sure to find out that information and make sure you completely understand the consequences of whatever interest rate is part of this mortgage.

It's good that they cover 1% for the first 12 months, but what happens after that?

Also while your credit score is great, you have $27k in debt and $40k in annual income so that debt to income ratio isn't good. That's another reason why your interest rate might not be favorable.

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the_journeyman3 t1_iyd5yhz wrote

Don't forget insurance and property tax.

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Eldengames OP t1_iyd9zao wrote

That's always a concern haha, financially my wife and I are alright with the payment I just don't want to get ripped off. We're lucky month to month we really only pay on rent and car expenses along with food, I'd just like to make sure we get this as low as possible so we can enjoy life more.

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