Ray Pyle, Other/Just Looking in 94549

Currently renting @ $2400/mo. 3BR 2BA single family home.

Asked by Ray Pyle, 94549 Sat Jul 31, 2010

I can afford 10% down and $3500/mo for a combined mortgage, insurance, PMI, and tax payment. Can I afford a similar house in Lafayette? Can I even find a loan for 10% down? My income/debt ratio can support the $3500/mo.

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4
Ann Sullivan’s answer
Hi Ray, I use a really great rent vs buy calculator from the New York times at http://www.nytimes.com/interactive/business/buy-rent-calcula… It is interactive and has lots of variables so you can keep it simple or add a lot of information. Putting in your scenario, the calculator came out as better to rent if planning on staying for 6 years. There are many factors to consider though, for instance, do you think home prices will increase (decrease) and at what rate? Do you think rents will increase(decrease) and at what rate? What is the value of the home you are living in now? Are you able to buy the same house at your $3500 PITI? Take a look at the calculator and feel free to contact me if you would like to talk about the macro economic situation on home prices and what is specifically happening in Lafayette or if you want a value of your rental. Hope this helps! Sincerely, Ann Sullivan Realtor, MBA
0 votes Thank Flag Link Mon Aug 30, 2010
Using software called Fidelity Agent, here are some possibilities, based on the PITI of $3500/mo, 5% interest for 30 years, conventional loan (of course, the interest rates may be less than this depending on when you apply for a loan, your credit score, etc). These are mere estimates just to give you an idea.

You should consult a lender for more exact figures as well as find out what loan programs suit your needs best.

What you can afford based on % down payment
5% $495,852
10% $533,255
15% $566,375
20% $621,900
25% $654,046

If you want to try an FHA loan, 5% interest rate for 30 years
3.5% minimum down payment you can afford to buy $497,605
5%% $503,955
10% $526,339
15% $550,804
20% $577,653

As for what's available in Lafayette under $660K.... Ther eare 17 properties under this price, ranging from a low of $324K for a 3 BR/1.5 condo to $649,230 for a bank-owned detached single family home with 3 BR/3 BA

Hope you find this helpful. If you haven't spoken with a lender yet so that you can be preapproved, that would be the first thing you may want to do. If you want some references, it will be my pleasure (as well as others' who respond) to give you names/numbers of responsive, responsible and resourceful lenders.

Let me know how I may help.

Good luck!
0 votes Thank Flag Link Sat Jul 31, 2010
With out knowing all the particulars you probably can. FHA loans are 3.5% down. But you may want a different type of loan depending on your circumstances. I you wish to call me (925-260-4321) or e-mail me I can put you in touch with a lender that can work with you on this (Gene@AskGene.info). I can also e-mail you homes to look at.
0 votes Thank Flag Link Sat Jul 31, 2010
Hi Ray,
You should be able to put 10% down. You can log on to my website to see how much house you can afford, along with doing a search in Lafayette. Depending on size, age, condition, etc., you should be able to afford a purchase in Lafayette. Contacting a lender is a good, first step.
Suzanne
0 votes Thank Flag Link Sat Jul 31, 2010
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