Q: I'm a first time buyer. I am confused on what type of loan I can get and what type of interest rates are available. I've done the random searches for loan rates for a certain amount of money. Although I'm sure that monthly payment is leaving out a lot. What else do I need to consider into a monthly payment? Thanks.

Todd Pytlinski

A: Dear Todd:

Congratulations on your decision to become a homeowner. You loan payment will include the following components;

Principal and interest Taxes Insurance PMI or MIP

When calculating how much home you can afford, It is important look at more than the cost of the home.  Property taxes vary from home to home and in many cases, taxes can make up a substantial portion of your payment. For example, if property taxes are  $2000 a year, you have to budget for an additional $166 per month to pay towards your escrow account.  Also, if you lack the funds for a 20% down payment you may have to pay mortgage insurance which can range from $50-$200 per month depending on the size of your loan.   For home buyers who have little to no down payment, I would suggest looking into a FHA loan as their down payment requirements are more liberal than conventional loans.  Our company also offers a special program which has no mortgage insurance and requires no down payment.  I would suggest that you speak with one of our loan consultants to see if you qualify.  For more information on FHA ! and other loan options click to the mortgage center on our web site.  www.midwestmortgagecapital.com  Best of luck to you.

Jerry