Figuring Out Your Monthly Payments

It's always a good idea to determine how much you can afford and what kind of home price it would translate into. Please review the Why Estimate Monthly Payments section now.

Got Less Than 5% Cash Down Payment ?

Have not saved full 5% for a down payment so far? If you have a high enough income and some discipline, you may still take advantage of our Lease/Purchase program (see below). You can qualify to build up that equity while you rent. To learn more about this opportunity please check out our Down Payment Installment program.

Got 5%-10% Cash Down Payment ?

Our Lease/Purchase program is perfect for you. If you have good steady income and monthly debt payments that are not overwhelming we can get you approved immediately.

Got 10%-30% Cash To Put Down ?

With a large down payment we can approve you for our Non-Qualifying Owner Financing program, which allows you to take full advantage of home ownership benefits, such as mortgage interest and property tax deductions (on your tax returns), monthly mortgage loan balance pay down.

Why Estimate Monthly Payments?

Knowing the price of the house may not immediately tell you if you can afford it and if you should look at it. Knowing (a) what you can afford on a monthly basis and (b) what payments will come along with the house of a certain price will allow you to quickly determine which homes are for you and which are too pricey.

Figuring Payments Based on Price

The good news, it's really simple to roughly estimate monthly payments on a particular home. Take 1% of the price of the home - that's what your payment will be approximately.

Example. Let's say you are looking at a home listed at $90,000. You can quickly figure out that your monthly payment will be about 1% of the price, or $900.00.

If you can only handle $600/month you now know that $90,000 is too pricey for you.

Figuring Price Based on Payments

Suppose you know you can only afford a certain amount to spend monthly on house payments. What home prices should you look at? Again, it's easy. Just multiply the desired monthly payment by 100 and you'll get a idea of the price you'll have to pay.

Example. You don't want your payments to be higher than $1,000. Multiplying $1,000 x 100 gives us a price of $100,000. You should be looking at homes of $100,000 or less.

Exceptions

There are 2 exceptions that will change the 1% relationship between the price of the home and what you can expect your monthly payment to be.

1. If you are buying with an Owner Financing plan and putting a large (20%+) down payment, your payments will go down because a smaller amount will have to be financed.

2. You have less than 5% cash to put down (which is our required minimum). In that case, depending your income, we may still be able to finance your down payment through our Down Payment Installment plan. That will cause an additional monthly amount to be added to your regular payment.