As your Nashville TN Benchmark Realty agent, I enjoy working with 1st Time Home Buyers! What’s more exciting than going through the process of being a 1st time home buyer!!! The question I get asked most is…..What will my monthly payment be on my Nashville home?? Most of the time it is less than what my client is paying in rent on their rental home or apartment in Nashville, or surrounding areas. It is important you look at your finances, money coming in, bills going out, and have an understanding of your mortgage.
Calculating Your Monthly Mortgage Payments
One of the most important factors to consider when buying a new home in Nashville TN, is affordability. As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay. The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other monthly expenses.
Figure Out How Much You Can To Borrow for your home.
The Nashville TN and surrounding Middle TN real estate market is booming! It is a great time to invest in a property in Middle TN. Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow. This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender. If you do not have any money to put down we can look at other financing options with a zero down payments.
Mortgage Rates for your Nashville TN Property
Rates can change daily!
The next step is to determine the current interest rates for the purchase of a home. Rates vary and may change often, so check with your lender for current rates. It’s worth noting that the interest rates you receive will, in part, be based on your credit history. This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated. My team and I have a list of local lenders that I can put you in touch with. If you don’t have perfect credit that is OK too! We have lenders who can work with everyone and develop a plan to get you a loan too.
Choose Your Loan Term on your Middle TN Home
Your monthly mortgage payments will be determined by a number of factors, including the term of your loan. If you were to borrow $250,000 for your Nashville TN property, your monthly payments would be less with a 30-year mortgage than with a 15-year mortgage. The reason is because it would take larger monthly payments to get the loan paid off quicker, which is why you will need to select a loan term before calculating your payments. The longer your loan term, the lower your payment will be, but usually the more interest you will be paying. A lot of loans have zero penalty for early payoffs, extra payments monthly and helping you getting the principal down sooner and faster.
Additional Costs To Consider
Your total mortgage payment will include taxes, homeowner’s insurance and possibly even private mortgage insurance (PMI) if you provide less than 20 percent down and your loan requires it. Your Nashville lender will help you and explain the details and determine what is best for your personal loan.
Just The Facts & Figures on your new Nashville TN Home
Now that you know how much you need to borrow, have chosen your loan term and are familiar with the current interest rates, it’s time to calculate your payment. Our local Middle Tennessee lenders will help you calculate what the exact monthly payment will be and we get to start looking for you a NEW HOME!
Buying your 1st home in Middle Tennessee will be one of the biggest investments you have made and I will help guide you through this process, educate and answer any questions you have! Now is the time to invest and get a piece of Nashville TN! I work closely with my lenders and make sure my real estate clients are taken care from the beginning to the closing! You will not just be a home buyer, but will be part of my real estate family and that is why, thankfully, I have been practicing Real Estate in Nashville and Middle TN for over 14 years!
Are you a 1st Time Home Buyer??? Start your process now. Call, email , or text me and let’s get this ball rolling! I have an information packet with everything you need to be prepared and educated. Let me know if I should email or mail it to you. It’s time for you to stop throwing money away on rent and have your own piece of Middle Tennessee!
The Doug Austin Team