Home Buying in 90703>Question Details

Peaceandpow…, Real Estate Pro in ,

About how much would the down payment and mortgage payment be on an FHA loan on a $750,000 house.?

Asked by Peaceandpowerparenting, , Wed Sep 26, 2012

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The maximum FHA loan amount in Los Angeles County is $729,750. FHA requires a 3.5% down payment. On a $750k sales price with a 3.5% down payment would mean your base loan amount is $723,750. FHA also has a 1.75% upfront mortgage insurance premium (UFMIP), which can be paid out of pocket or financed on top of the base loan amount. If financed that would bring the total loan amount up to $736,415 (the remaining $.63 is paid in cash/out of pocket). The total loan amount with the UFMIP financed into it is OK to exceed the FHA loan limit.

The principal & interest payment is based on the total loan amount, and the interest rate you are being offered. For the payment example let's use 3.25% on a 30-year term (I am not quoting a rate, it is just a rate being used for the example). The principal & interest payment would be $3,204.92/mo.

Next you have the annual mortgage insurance (MI) that FHA charges. The rate of the annual MI will depend on the down payment percentage, loan term & loan amount. The annual MI is only paid on the base loan amount (not total loan amount). For a 3.5% down payment on a 30-year term on a loan amount above $625,500 it is 1.5% per year. On the base loan amount of $723,750 that would be $904.69/mo.

You also have homeowners insurance, which you should get a quote for, and property taxes which are normally estimated at 1.25% of the sales price here in California. FHA loans require an escrow/impound account, so those items will be a part of your monthly payment. If you estimate $1,200/year for insurance that would be $100/mo & 1.25% of the sales price would be $781.25/mo in property taxes. All of that totals up to $4,990.96/mo.

Current FHA MI rates: http://portal.hud.gov/hudportal/documents/huddoc?id=12-04ml.pdf

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Wed Sep 26, 2012
Suggest you GOOGLE; "mortgage calculator" yourself, and play with it.
It's easy and enlightening.
0 votes Thank Flag Link Wed Sep 26, 2012
The minimum down payment requirement for FHA is 3.5% of the sales price. Your mortgage payment would depend on how much you put down, the taxes, insurance, and interest rate would be to get an idea of how much your monthly payments would be.
0 votes Thank Flag Link Wed Sep 26, 2012
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