How much would $2,000 a month get us???

[anemo]

Hi to all!

I wanted to know how much would a budget of $2000 a month for a home get us?  Can I get a home for at least $400k

Also Me & wife are debt free with a net income of $5,600 a month, credit is  630 middle score.

Also we don't really wont to put money down if we don't have too, can we get away with that?

[DallasLoanGuy]

what would the taxes run on a $400k home?

[anemo]

The area we are looking in runs about $7k to $10k

[ShanetheMortgageMan]

It appears the taxes are about 1.75% to 2.5% then.  If the taxes are 1.75% of the sales price, assuming a 5% rate, 3.5% down, FHA loan, you'd be looking at a cap of about $275k, P&I is $1424.59, insurance $75, taxes $401.04, mortgage insurance $122.03, total of $2,022.66/mo.  If the taxes are 2.5% of the sales price, it'd be more like $250k.  On a $400k home, taxes of $7k, you are looking at about a $2,900/mo payment.  More of a down payment would lower the P&I portion of the payment.

[anemo]

Ok,

Another ?, property taxes are based on the sale price right? Or square footage?  If you have a house that's was originally $400K based at 1.75% to 2.25% but now is $275K and those taxes were based on the first sale price can you ask to have the tax modified? (I'm in Illinois)

Or do you know what Matteson IL tax rate is?

[rockymtngrl]

Property tax is based on the county tax appraisal. The county has an appraiser that goes out every few years (or more often) and appraises the property. Square footage is considered, although sales prices really is not. You can call up your local property tax office and ask them how much the tax rate is.

[rockymtngrl]

just adding that you may want to do some online searching or you can call the tax office and see if tax records are available online. In my state you can search online for all properties and find out exactly what the county has it appraised for and exactly what the taxes are, along with sales history and a bunch of other stuff. Real estates agents can also check for you if you are working with one, because the MLS usually lists what the taxes are.

[Anonymous]

rkymtgrl

Just to clarify, property taxes are not always based upon appraisals.  In Cali they are based solely on the previous sale price of the home unless you petition for a change in the tax amount based upon home value dropping.  They do not come out every few years and re-assess.

[anemo]

Thanks for the advise!