If you are looking at buying a home and wondering what the payment will be there are some websites out there that can help you.
Here are a couple:
Just plug in the figures and out pops your monthly payment. Just remember that you need to figure in the cost of mortgage insurance, homeowner’s insurance, home owner association dues and taxes. These four things can make your payment much higher that you think.
Lets take and average $200,000 house and figure out what the down payment and the monthly payment will be. We are going to use a 96.5% loan to value FHA mortgage – fixed 30 year - to purchase this home.
We have negotiated into our contract that the seller will pay all of the closing costs.
Down Payment = $200,000 * 3.5% = $7,000
Base Loan amount = $200,000 * 96.5% = $193,000
Up Front Mortgage Insurance = $193,000 * 1.75% = $3,377.50
Total Loan Amount = $196,377.50 – with FHA loans the up front mortgage insurance will be added to the base loan amount.
Monthly Payment: Principle and Interest at 5.5% = $1,115 Monthly Mortgage Insurance = $193,000*.55% = $1,061.50/12 = $88.45
Taxes = $3,000/12 = $250.00 Insurance = $1,200/12 = $100.00 Total Payment = $1,553.45
So your total payment on an average $200,000 home will be $1,553.45.
This is something that you want to know before you start looking at homes. For more help with this visit www.thebriteway.com and give us a call.