| With the real estate market beginning to see signs of | | | | but if you want to get an average rate, look in your |
| a bottom leading to a recovery, it may be time to | | | | newspaper or online for the average rate being paid |
| start looking for a new home or an investment | | | | in your area. There are numerous online resources |
| property. Because of that, I want to show you a | | | | that will give you that information. |
| website where you can figure out your loan | | | | Number of years is normally 30 years and you want |
| payments with their mortgage loan calculator. | | | | to look at a yearly amortization table. (This table |
| First, let's talk about what a real estate bottom | | | | simply tells you how much of your payment is going |
| means. Real estate, just like everything having to do | | | | to interest versus principal. It's depressing to see how |
| with the economy, moves in definite cycles. While | | | | much money isn't going to the actual payment of |
| economic downturns are scary and affect people in a | | | | your home.) |
| real and sometimes debilitating ways, they are part | | | | The property taxes can be found by calling the local |
| of the normal cycle of our economy. When the | | | | city government office or asking your real estate |
| economy is down, you can expect that it will go | | | | agent if it is on the MLS listing. Your mortgage loan |
| back up. | | | | calculator is almost ready to calculate so don't give |
| What investors look at in these cycles is the bottom. | | | | up. |
| The bottom of a cycle is the absolute lowest value | | | | Hazard Insurance is going to depend on the value of |
| an investment vehicle hits before it starts to go back | | | | your home plus any additional coverage you want. It |
| up in value. The closer to the bottom you can buy, | | | | is suggested that you get a quote before making a |
| the more money you stand to make. Use the | | | | decision on whether to purchase the home. This can |
| mortgage loan calculator at Yahoo! Real Estate to | | | | easily be done online and the quote will be nearly |
| see if you can afford that property if you think your | | | | instant. |
| area is at the 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 | | | | home's value, you are going to pay PMI. This is |
| for purchasing a home, it is an investment and should | | | | insurance against you defaulting on your loan. says |
| be bought at the appropriate time in the cycle. Let's | | | | this: |
| take a look at the Yahoo! Real Estate mortgage loan | | | | Let's say you put down 10 percent or $10,000 on a |
| calculator which you can find by searching for Yahoo! | | | | $100,000 house. The lender multiplies the 90 percent |
| Real Estate and clicking on the comprehensive | | | | loan, or $90,000, by .005. The result is an annual PMI |
| mortgage calculator | | | | of $450, which is divided into monthly payments of |
| In order to get an accurate payment amount you | | | | $37.50. |
| have to fill in all of the fields. The loan amount is the | | | | Now, your mortgage loan calculator is ready so do |
| total amount that you will borrow for your home. | | | | the calculation and see what comes up. If you can |
| That is different than the selling price of your home. | | | | afford it, take the next step. You're on your way to |
| The interest rate will come from your loan company | | | | a new home! |