Real Estate Home Mortgages/FHA loans
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!
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)
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: firstname.lastname@example.org or call 281-402-3650.
All the best,
- Al Rodenburg, NMLS # 272775
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