need help estimating mortgage cost

[Arthur Rosene]

Hi

I am in the market for a mobile home. I am on disability so I need to be able to get my payments for both land and mobile home for no more than $300/mo. I found a mobile home calculator and entered a few really basic variables like 8% interest, 30 year loan, and estimated $30,000 to finance.. the figure it gave me was around $230 a month. is this a real estimate of what my payments could be ?

[Ron]

This figure is pretty close, however don't forget you will have to have home owners insurance, property taxes, and (since this is land/home package) you could be required to have mortgage insurance monthly payment, if your down payment is less than 20% of the amount you borrow.

Say you borrow $30,000 here's what you might expect as payment:

$230 monthly mortgage payment
$ 20 monthly set aside for estimated property tax
$ 20 monthly mortgage insurance (if you have less than 20% down)
$ 30 monthyl Home Owners Insurance premium on $30,000 coverage
----------------
$300 (Plus monthly utilities) total monthly payment ESTIMATED ONLY. COULD BE LOWER OR HIGHER depending on interest rate, down payment, utility costs, etc.

[As a rough gauge for monthly payment at 8%, you can use $8 per $1000 financed. ($8 times $30,000= $240 per month.) If you had 9% interest rate, you can use $9 per thousand. This formula does NOT take into account the declining balance method of financing mortgage. (As balance owed decreases, more of payment goes to equity than interest.That is why you arrived at $230 month.)]