| With the real estate market beginning to see signs of | | | | you want to get an average rate, look in your |
| a bottom leading to a recovery, it may be time to start | | | | newspaper or online for the average rate being paid in |
| looking for a new home or an investment property. | | | | your area. There are numerous online resources that |
| Because of that, I want to show you a website where | | | | will give you that information. |
| you can figure out your loan payments with their | | | | Number of years is normally 30 years and you want |
| mortgage loan calculator. | | | | to look at a yearly amortization table. (This table simply |
| First, let's talk about what a real estate bottom means. | | | | tells you how much of your payment is going to |
| Real estate, just like everything having to do with the | | | | interest versus principal. It's depressing to see how |
| economy, moves in definite cycles. While economic | | | | much money isn't going to the actual payment of your |
| downturns are scary and affect people in a real and | | | | home.) |
| sometimes debilitating ways, they are part of the | | | | The property taxes can be found by calling the local |
| normal cycle of our economy. When the economy is | | | | city government office or asking your real estate |
| down, you can expect that it will go back up. | | | | agent if it is on the MLS listing. Your mortgage loan |
| What investors look at in these cycles is the bottom. | | | | calculator is almost ready to calculate so don't give up. |
| The bottom of a cycle is the absolute lowest value an | | | | Hazard Insurance is going to depend on the value of |
| investment vehicle hits before it starts to go back up in | | | | your home plus any additional coverage you want. It is |
| value. The closer to the bottom you can buy, the more | | | | suggested that you get a quote before making a |
| money you stand to make. Use the mortgage loan | | | | decision on whether to purchase the home. This can |
| calculator at Yahoo! Real Estate to see if you can | | | | easily be done online and the quote will be nearly |
| afford that property if you think your area is at the | | | | instant. |
| bottom of the real estate value cycle. | | | | Unless your down payment is at least 20% of your |
| Remember that no matter what your motives are for | | | | home's value, you are going to pay PMI. This is |
| purchasing a home, it is an investment and should be | | | | insurance against you defaulting on your loan. says this: |
| bought at the appropriate time in the cycle. Let's take a | | | | Let's say you put down 10 percent or $10,000 on a |
| look at the Yahoo! Real Estate mortgage loan | | | | $100,000 house. The lender multiplies the 90 percent |
| calculator which you can find by searching for Yahoo! | | | | loan, or $90,000, by .005. The result is an annual PMI of |
| Real Estate and clicking on the comprehensive | | | | $450, which is divided into monthly payments of |
| mortgage calculator | | | | $37.50. |
| In order to get an accurate payment amount you have | | | | Now, your mortgage loan calculator is ready so do the |
| to fill in all of the fields. The loan amount is the total | | | | calculation and see what comes up. If you can afford |
| amount that you will borrow for your home. That is | | | | it, take the next step. You're on your way to a new |
| different than the selling price of your home. The | | | | home! |
| interest rate will come from your loan company but if | | | | |