JBH ENTERPRISES OF AMERICA,INC

BUILDING BETTER HOMES FOR THE FUTURE
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FAQ
HOW MUCH HOUSE CAN YOU AFFORD ? 
Now that you've made the decision that you want to own your own home
(single family resident, condominium, cooperative, townhouse).
  • How much downpayment can you make?
  • How much can you pay monthly for mortgage interest and principal payments, as well as for property taxes and insurance?
  • Until you can answer these questions, you can't really begin to look seriously for a home.
  • Let's take a look at the first question, how much downpayment can you come up with ?   For first time homebuyers, coming up with the necessary downpayment or using a planning technique to minimize the requested downpayment is why you need to consult with professional bankers, brokers are other financial advisors to get help to understand what the downpayment is and why it's inportant to sellers of homes, banks and others who lend you money to buy your home.
  • Why is the downpayment so important ?
  •  1). The seller may need the cash for the downpayment on the next home he or she is buying.
  • 2). Seller holding the note !  they usually ask for a large downpayment to protect themselves from default.


Q: How can i determine home much of a downpayment i need to come up with?
A: Let's take the basic calculation of a mortgage payable over 30 years at a 9 percent rate. If you only have $500.00 a month to pend on a mortgage !  use my calculations below:
Downpayment                                                                  Home You Can Afford
$5,000.00                                                                                 $67,100.00
 
$10,000.00                                                                              $72,100.00
 
$15,000.00                                                                               $77,100.00
 
$20,000.00                                                                               $82,100.00
 
Should this stop you from buying or building a home ?  Certainly Not !!!
This is simply a true calculation to determine what your downpayment may be.
No professional can tell you what your rate will be until  after a full loan application has been completed. (only allow  lenders or brokers to pull your credit report).