If you subtract the monthly maintenance, monthly real estate taxes and monthly homeowner's insurance from the $1500 you mentioned, then divide the result by $4.59. This is the factor that is used on a 30 year fixed mortgage at 3.5%. As an example, if the maintenance, real estate taxes and homeowner's insurance cost $700.00 per month, $1500 - $700 = $800, $800 divided by $4.49 = $178.17, hence you would be able to borrow $178,170 and still be within your budget in this example. Keep in mind that the maintenance. real estate taxes and insurance will vary from unit to unit. Also, the interest rate of 3.5% is today's prevailing rate for a qualified buyer, you need to qualify yourself with a bank top see if the rate you can receive is the same, higher or lower than that.
When you purchase you are best off putting 20% down. In the above example 20% would be about $45,000. Hence you would be able to purchase for a total purchase price of about $220,000.
If you are not looking to buy for another year or so, you should hold off looking for now. I say this because we do not know what the market will be like a year from now, it may be very different, also we do not know where interest rates on mortgages will be in a year from now. Given this there can be a dramatic change over the course of the next year.
If you need further assistance, or want to discuss all this further, contact me direct. Good luck!!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
That said at the moment you could buy a studio apartment, depending on your income, downpayment, etc. A year from now I suspect the market will be very different. The amount of cash for downpayments and closing costs depends greatly on your finances as well as the building you are trying to buy into. Feel free to call me to discuss further.
If you are not ready for a year, use the time to save, save, save, check your tax returns, your credit reports and spend a lot of time scouting the areas and open houses for what you think you want to try to buy.
The neighborhoods that you have mentioned are all very different; socialy, structuraly and type of architecture and property available, I am sure once you spend a bit more time in each neighborhood and be open to discovering a few other neighborhoods in the area, you will be better able to make the right choice when you are ready, financialy and otherwise to buy.
It is a bit early to work with a Broker, but feel free to call for help or direction.
Kathryn Lilly, Broker
Realty on the Greene, LLC
I'm not going to write a book on Trulia and bore you to death, but I do have 15 years experience and can guide you in the right direction. If you have any questions, feel free to call anytime.
Give me a call anytime Ronald.
Cell#: 212 300 3919
Douglas Elliman RE
M: (212) 300-3919
F: (917) 369-2690
325 Court Street, Brooklyn, NY 11231