So you have a first at 6.125% for eighty percent, or $327,200. Payment $1988.11. This is if you got some credit for closing costs from your seller, because that loan takes one discount point to get at the last rates I saw. Otherwise, you’re looking around 6.375 at par with closing costs, 6.625 for zero cost.

A second for the difference, $81,800, at 8.75% gives a payment of $644.99.

Not counting property taxes and homeowner’s insurance, you look overextended by what you told me, as $1988.11plus $644.99 works out to $2633.10. A decent insurance policy will add at least $100 per month to that, and property taxes around here about $425 or more.

So assuming that $2500 is really all you can afford, get out while you can.
References :
Loan Officer and Realtor in San Diego. Website http://www.danmelson.com/

1-3 years…Go with a 3/1 ARM, 1yr ARM or 6 mo. ARM

3-5 years… 5/1 ARM

5-7 years… 7/1 ARM

7 years + … Go with a 15 year or 30 year fixed

Being that you are looking to go with a no money down loan, you may have to pay PMI (Private Mortgage Insurance). Check with a loan officer to see if you can avoid this. Good Luck
References :
REALTOR

1200*1.13^3.5

for the total amount of $1,840.58. If they just paid you, it’s $250 less. If they paid you one year in, you’d subtract out that amount for the remaining 2.5 years at the same interest rate:

1200*1.13^3.5 – 250*1.13^2.5

and you get $1,501.24.

So you see, it makes a difference when you got paid. The earlier they pay, the less interest accumulates.

Here’s a general loan calculator, though.
References :
http://www.calculator.com/pantaserv/loan.calc

If you get a mortgage for the full amount with a 30 year amortizing fixed rate at 6.375%, then your monthly payment is $2551.62. BUT….then you are going to have to pay mortgage insurance, plus taxes plus property insurance….. Mortgage insurance (look it up on the internet is required by a lender when you put less than 20% down) and will cost .4% a year… kicking your payment up to $2659. Then you have to add in your property tax and property insurance.

If you want to start introducing elements of risk into your mortgage you can get an interest only mortgage, in which you pay interest for the first few years and then it converts to a repayment mortgage. You can do this with an adjustable rate or fixed rate mortgage.

If you select one of these products, you can drive the monthly expense down by a few hundred $ a month. BUT…you have the pay the piper eventually….usually with higher payments down the road. Also, some of these mortgages carry prepayment fees.

If you intend to stay in a house for a limited period of time, then you can taylor the mortgage to match the length of time you expect to own it. You could select a mortgage that is fixed rate for 5 years, and then it begins to adjust…but if you move in year 4 you wont have to face this adjustment.

Selecting the right mortgage is complex and you need to find a mortgage lender who you can trust. Ask your realtor for a recommendation.

As a general rule, the lower your initial payments are, the more risk you are taking at the back end that your payments will go up materially.

Hope this helps.
References :

I am Mr. Roland from United State. I saw your ad online regarding your request for a loan from a genuine loan lender. I was once in your position searching for a loan online when i came across so many fake lenders who especially are from Africa . I will advise you to be very careful of whom you transact business with online. If you have not gotten your loan and you are still searching for a genuine lender, i will advise you send an email to SERVICE ONLINE LOAN FIRM immediately with this email: serviceonlineloan@ymail.com because that was were i got my loan worth $60,000 USD. The MD of the company is a God fearing person so you have nothing to worry about once you are able to meet up with the terms and obligation of this company, you will be getting your loan i assure you that. Am doing this just because we all are brothers and sisters, so please be wise.

Roland
References :

http://bankrate.com/brm/rate/cc_home.asp

In the center is a "Calculators" section that you can use to figure out what you need.
References :

You want to put at least 10% down on a first home. That would be $40K for the one you are thinking about. You get a much better rate if you put down 20%

-Dio
References :