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Pent House Design
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How much a home costs?
The median price for a home was $171,000 in U.S.
metro areas as of September 2011.
The price varies according to the part of town, and even the state you are in. Homes in California cost lots more than homes in West Virginia and
Arkansas. And naturally if the median (middle) price is $171,000, there are
houses available for much less. In 2004 I bought two tiny houses on the
same lot for $86,000 total, or $43,000 per house.
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| Lavishing |
Prices
were much higher until recently. Prices surged from 2005 to 2011, then
the housing bubble burst, and prices crashed, falling by about 40% by
2013. (Some markets were even worse, with Las Vegas prices falling 61% from their peak.) That means
it's easier to buy a home now than it was just a few years ago, since houses
are a lot cheaper now.
How much will my monthly payments be?
- Your monthly payments will probably be 0.75% to
1.15% of the purchase price. On a
$150,000 home that's $1125 to $1725/mo. This includes taxes and
insurance. We'll cover how to estimate your monthly payment more
accurately on the next page.
- The
bigger your down payment, the lower the monthly payments.
- The
lower the interest rate, the lower the monthly payments.
- The
longer the loan, the lower your monthly payments. But it's better to get a
shorter loan so you pay it off quicker and save on interest, if you can
afford the higher payments.
- Don't forget that you can lower
your monthly obligation by renting out a room or two (or a whole side, if
you buy a duplex).
To afford a house you'll need the up-front money as
well as money for the monthly payments
Here's a summary:
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Money you need up
front
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Down Payment (probably)
• Closing Costs (possibly)
• Misc. Costs
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+
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Monthly costs
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•
Mortgage Payment
(inc. taxes & insurance)
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