can some on explain to me how to figure out the mortgage on this property? this is an example, if it is incorrect, please show the correct way to figure it out.
PURCHASE PRICE: $221,900
(assumtion of 3% for closing)= $6,657
APR= 6.75% = $14,978.25
total purchase = $243,535.25
I have a down payment of $20,000
30yr/fixed
yearly taxes of $1800
and insurance of $800
condo fee of $200
so all in all purchase price is $226,335.25/ 30years=$7,544.50
$7,544.50/12 months=$628.70/month mortgage
is this correct or incorrect?
You have a few terms correct and others I’m a bit concerned or confused with, but I’ll try to revamp it here.
This appears to be an assumption? The lender is charging you an assumption fee of 3% which is the $6657.00?
The rate you have there doesn’t appear to be an APR (Annual Percentage Rate) which is a yield of all costs; it appears to be the note rate. Payments are calculated differently than what you have here. If you had an "interest only loan," then your numbers are sort of there. The interest DOES not get added to the purchase price nor does an assumption fee for that matter. These are fees and do not get added to the purchase price; they are required to be paid by a party: buyer, seller, lender, or gift.
Taxes are based upon the purchase price and the rate varies from state to state, so I can’t help you there.
Insurance is PART of the condominium association dues (usually), so check with the current owner (if you don’t have an agent representing you).
Here’s what I gather (the down payment will be based upon on how much you have remaining after costs/fees which are all negotiable):
Purchase Price: $221,900.00
Loan Amount (assume that you have $0 down): $221,900.00
Interest Rate: 6.75%
30 Fixed Rate Payment: $1439.24
Total Monthly House Payment:
Principal/Interest: $1439.24
Association dues $ 200.00 (don’t need to be impounded)
Taxes: $ 150.00
Total: $1789.24
Using the method you did to come up with the monthly payment would be in a perfect life and big banks wouldn’t be so big. You calculated interest cost on a one year basis. Unfortunately, interest is calculated on a daily basis and continues throughout the 30 year term (if gone unpaid, compounds). This is why the interest portion of any mortgage is so high in the beginning of the term.
your purchase price is 221,900 of which you have a down payment of approximately 10%. With all the items and information that you have given you monthly housing expense will be more than $628.70/month. I am a licensed mortgage broker in Florida. I can give you all the details that you need if you would like. you can contact me at jkmeredith1957@yahoo.com. Best of luck to you
References :
I am a licensed mortgage broker.
Ok, assuming that you are adding your insurance, condo assoc, fee, and taxes into the payment. Here is what I would come up with. I will include a link to a mortage calculator.
Principal and interest=1309.52. Taxes (monthly)150.00. 66.00 for insurance (monthly) and 200.00 for the condo assoc (monthly). That comes to $1725.52 a month.
This is assuming that you pay the closing costs at closing. And 6,000 seems very high.
References :
http://www.bankrate.com/brm/mortgage-calculator.asp