Rents are still high, vacancy rates are still very low, and interest rates are still excellent (though we experienced them going up for the last few weeks, which was a bit scary). Thankfully, this week rates went back down a bit to 3.55%, from 3.64% last week.
So what does a total mortgage payment look like? Some of those mortgage estimate websites only calculate your principle and interest, but forget about important fees like taxes, insurance, and mortgage insurance!
Let's do a couple case studies - you might be pleasantly surprised:
Purchase Price: $200,000
Downpayment: 3.5% Downpayment: 20%
Interest rate: 3.55% Interest Rate: 3.55%
Taxes: $1000/year Taxes: $1000/year
Insurance: $1000/year Insurance: $1000 year
~Mortgage Insurance: ~$201/mo Total Monthly Payment: $889/month!
Total Monthly Payment: $1239/mo
*Note: After 5-7 years, you won't have to pay mortgage insurance any longer, and your total monthly payment will be $1038!
Purchase Price: $400,000
Downpayment: 3.5% Downpayment: 20%
Interest rate: 3.55% Interest rate: 3.55%
Taxes: $2000/year Taxes: $2000/year
Insurance: $1000/year Insurance: $1000/year
~Mortgage Insurance: ~$401/mo Total Monthly Payment: $1695/month!
Total Monthly Payment: $2395/mo
*Note: After 5-7 years, you won't have to pay mortgage insurance any longer, and your total monthly payment will be $1995!
If you need more estimates on different purchase prices and downpayments, please contact me!
