Mortgage

Question: A little help with mortgage information and first house buying?

(Posted by: Kara P on 2008-02-15 18:11:55)

Ok so I am looking to buy my first house in a year with my other half. We should have 10, 000 pounds saved for a payment and we will be earning between 40- 50, 000 combined. We wanted a house about 150, 000 is the realistic? Any help or advice would be great. Would could we expect to pay a month and how long would we have to pay it back?

Posted by: TV is Good For You on 2008-02-15, 18:17:09

Yes this is very realistic. My husband and i have just bought a house for £228,000 and we had a deposit of £11,000 which is 5%. Our income is similar to yours, and i think that £150,000 is very achieable, and you may be able to go for something more if you can afford it!

Posted by: sheloves_dablues on 2008-02-15, 18:23:47

It sounds quite realistic. I don't know the value of a pound as compared to a Canadian dollar, but when I consider the value of my first home purchase ($163,000) which we put $10,000 down on, with a combined income of about $60,000, it seems to fit quite comparably. You're doing the right thing by saving as much as you can and ensuring a larger down payment. Not only does this make you less of a credit risk for a mortgage, it will save you a lot of mortgage interest over the long run. To further reduce the amount of interest you will pay over 25 years, consider making weekly or bi-weekly payments. A bi-weekly schedule works out to 26 payments in a year, which is effectively 13 months. That means you'll be putting an extra months worth of payments towards the principal balance. Good luck!