Real Estate Home Mortgages/FHA loans

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Question
Hi, I have been trying to find accurate information on how a FHA loan would work in my case. I plan to buy a $150,000 house with 10% down in South Florida. the annual taxes are around $3,000. i want to know what could be my estimated payments including the loan insurance, the taxes etc. and what expenses should i expect with the FHA loan. thank you!

Answer
Since the Seller is allowed to pay up to 6% of the Closing Costs on your loan and will be paying the Owners Title and his proration of taxes - my guess is that you might only have to pay the 10% down (and you can go as low as 3.5% down payment, by the way, on an FHA purchase of a primary residence, detached, single family residence).

On a $150,000 purchase price, with 10% down payment - that would leave a "base" loan amount of $135,000. Add the 1.75% up front mortgage insurance (which typically is financed as part of the loan) and the Loan Amount ends up as: $ 137,362.

Monthly payments (based on 3.75% Rate (estimated APR: 4.61%) /30 year fixed FHA mortgage)would break down as:
$ 636.15 (principal and interest)
 250.00  (Taxes, based on the $3,000 figure you mentioned above)
 100.00  (Estimated homeowner's insurance, based on an estimated $1200/year cost estimate)
 148.81   (Monthly mortgage insurance at 1.30% annual rate)
TOTAL: $ 1,134.96 (estimate)

NOTES:
1. typical up front Appraisal fee is $550.
2. one year's insurance due at closing - to be paid to insurance co
3. Please check with a Local title company for the title, transfer fees, etc. that they would charge; I would guess that could easily be covered by the 6% sellers contribution (towards playing your closing costs, as notated above)

For more details, please email: alrodenburg@gmail.com or call 281-402-3650.

All the best,
- Al Rodenburg, NMLS # 272775
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

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Al Rodenburg

Expertise

Risk Management Consultant. see: Identity Theft Solutions and Life Events Plans.

Experience

As a person who has worked with individuals who have experienced identity theft and major life events, I am pleased to be part of Harvard Risk Management Corporation.

Organizations
CMPS Institute; Houston Northwest Chamber of Commerce - Committee Chair; WCR - Womens Council of Realtors; HAR - Houston Association of Realtors; Houston Northwest Business Networking Group (founder); The Woodlands Area Chamber of Commerce

Education/Credentials
Certified Mortgage Planning Specialist (CMPS Institute) ; University of Illinois - at Chicago; Florida State University; Principia College; Lake Forest School of Management; Roosevelt University; Salt Lake CC

Past/Present Clients
Al has a diverse national clientele.

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