Interest rate question, I am going to purchase a condo at the price of 125,00?
Interest rate question, I am going to purchase a condo at the price of 125,00. I have a credit score of 790 and plan on putting down around 5,000$. Can anyone tell me around what I will be paying monthly and any other information I might need to know on what I am paying for and how long. Thanks in advance.
- Lisa LLv 69 years agoFavorite Answer
Sounds like FHA is the way you will be going with that small down payment. You will have mortgage insurance, taxes & insurance in addition to taxes & insurance. You will also have a monthly condo fee but it will not be escrowed. The condo will have to be in an FHA approved complex. If it isn't, your lender will have to get it approved. I have done gotten several complexess approved. It takes patience & loads of paperwork.
Edit---sorry--you are probably looking at a rate 4.25% with no points, no origination. Also, the upfront mortgage insurance is 1% not 1.5% as someone else said. It can financed.
- OthnielLv 69 years ago
You can research this online by looking for an amortizationn schedule. That will show you how much of each payment goes toward principal and how much goes toward interest over a fixed period of time. I suggest you do a 15 year mortgage and try to prepay principle especially in the early stages.
To get a really accurate answer you need to talk to your lender. I suspect that you haven't lined up the lender as yet but that should really be the very first thing you do. Remember that paying the loan is only a part of the expenses of your purchase. You will have property taxes, insurance and in this case a monthly condo fee. You should ask about assessments as well since often condo associations need money to put in a new security system, repair or repave the parking lot, pay unexpected insurance rates and so on and so forth. Think twice before you buy a condo. It is not for everyone!
Oh, and use a real estate buyer's agent to guide you through the whole process. You will get valuable help and the commissions are normally paid by the seller. Do not use the listing agent because that person is already working for the seller.Source(s): Former real estate agent
- MaryLv 79 years ago
The best thing for you to do is speak with your bank and get pre-approved for a mortgage. They will have all the details.
Also, there are "mortgage calculators" on the internet, and all you need to do is tap that into your search engine.
Something you MUST plan for is that you will be paying more than the mortgage payment every month! With such a low downpayment you will almost certainly be required to get mortgage insurance, and that is added to your payment. It will continue until you have paid at least 20% to 25% of the loan principle. Also, there will be insurance on the property, and that is almost always added to the payment, too. Finally, in states with property taxes, that is almost always added to the payment. Thus, a $500 mortgage payment may actually cost you quite a bit more, and could bite your checkbook $700 every month.Source(s): BTDT
- linkus86Lv 79 years ago
With only $5k for a down payment you will likely have to get an FHA loan which is a little higher than conventional and closing costs are a little more too, so I hope if you put down 3.5% and finance the 1.5% upfront mortgage insurance premium, financing a total of 122450, your principal and interest payment would be about $585 plus taxes ($151), insurance ($27) and private mortgage insurance ($51) which I estimated in the parentheses for a total monthly payment of $815 plus monthly maintenance.