If you know me, you know I don't like being abstract. I need to see real numbers and concrete steps. There's nothing I hate more than when agents or lenders say, "Oh ya, that's like $1000 a month or something." So what do real mortgage loans look like with real purchase prices?
Of course it depends on your down payment. So let's divide it into 3 categories:
3.5% (FHA loan)
10% Down
20% Down
These are all for 30 year fixed loans (what I would recommend) with the current ridiculously low interest rates. Private mortgage insurance is based on current estimates
Purchase Price: $175,000
Low 3.5% Down Payment: $6125
Low 3.5% Down Payment: $6125
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
= $1019/month right now
In 7 years after Mortgage Insurance is paid: $881/monthRent: A house with this value rents for $1200-$1600 right now.
10% Down Payment: $17,500
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$898/month
In 7 years after Mortgage Insurance is paid: $819/month!
Rent: A house with this value rents for $1200-$1600 right now.
20% Down Payment: $35,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$746/month
Purchase Price $250,000
Low 3.5% Down Payment: $8750
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)=$1442
In 7 years after Mortgage Insurance is paid: $1245
Rent: A house with this value rents for $1800-$2200 right now
10% Down Payment: $25,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$1285/month
In 7 years after Mortgage Insurance is paid: $1171/month!
Rent: A house with this value rents for $1800-$2200 right now
20% Down Payment: $50,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$1057/month
Purchase Price: $350,000
3.5% Down Payment: $12,250
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)=$1985
In 7 years after Mortgage Insurance is paid: $1710
10% Down Payment: $35,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$1870/month
In 7 years after Mortgage Insurance is paid: $1606/month!
20% Down Payment: $70,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$1447/month
Purchase Price $430,000
3.5% Down Payment: 15,050
3.5% Down Payment: 15,050
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)=$2432/month
In 7 years after Mortgage Insurance is paid: $2096
10% Down Payment: $43,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$2167/month
In 7 years after Mortgage Insurance is paid: $1971/month!
20% Down Payment: $86,000
Total Monthly Payment(mortgage, taxes, insurance, and mortgage insurance)
=$1778/month
