I often have conversations with people considering their first home purchase who want to first get an idea of how much they would have to pay for housing on a monthly basis.  I have devised an Excel mortgage calculator that I can use to give them a rough idea, or I recommend that they call a lender to get pre-approved.

But --- for those of you looking to get just a rough idea, at a few price points, here are some examples of monthly housing costs...

The condo or least-expensive townhomes in Harrisonburg ($125K)
There are not very many options for housing below $110K in Harrisonburg, but there are some between $120K and $130K.  We'll assume a price in between of $125K.
   96.5% financing = $652/month ($4K down payment)
   90% financing = $614/month ($13K down payment)
   80% financing = $556/month ($25K down payment)
All of these estimates include taxes and insurance, and are based on a 30-year mortgage with a 3.75% interest rate.

The new-ish, starter Harrisonburg townhome ($150K)
There are quite a few two-story townhomes on the market right now built in the last 5-10 years, priced between $145K and $155K, located in the City of Harrisonburg.  We'll assume a price somewhere in between, of $150K.
   96.5% financing = $782/month ($5K down payment)
   90% financing = $737/month ($15K down payment)
   80% financing = $668/month ($30K down payment)
All of these estimates include taxes and insurance, and are based on a 30-year mortgage with a 3.75% interest rate.

The entry-level Harrisonburg single-family home ($200K)
While there are some single family homes priced below $175K, there are quite a few more options between $180K and $220K, again located in the City of Harrisonburg.
   96.5% financing = $1,042/month ($7K down payment)
   90% financing = $982/month ($20K down payment)
   80% financing = $890/month ($40K down payment)
All of these estimates include taxes and insurance, and are based on a 30-year mortgage with a 3.75% interest rate.

BUT....DON'T FORGET ABOUT THE TAX SAVINGS!

If you're renting now, you should also consider the tax savings of buying a home.  All of the interest you pay on your mortgage can be deducted from your income for tax purposes.  
   $125K @ 96.5% financing = $1,131 tax savings in the first year
   $150K @ 90% financing = $1,265 tax savings in the first year
   $200K @ 80% financing = $1,500 tax savings in the first year

The tax savings above assume a 25% tax rate and aren't realized until the end of the year, but if you factor in these monthly savings, the effective monthly housing costs (including property taxes, home owners insurance and the tax savings) would be...
   $125K @ 96.5% financing = $558/month
   $150K @ 90% financing = $632/month
   $200K @ 80% financing = $765/month

And...one final disclaimer...I am not a lender, nor do I offer any type of financing.  E-mail or call me and I'd be happy to recommend a few lenders to you.
 

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Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com