Home Buying in 17403>Question Details

mob812, Home Buyer in York, PA

Do you pay a higher interest rate if you buy a condo?

Asked by mob812, York, PA Sun Oct 6, 2013

Help the community by answering this question:


No, you should not have a higher interest rate but you will have monthly condo fees. There are some other things you should know about condo vs detached home buying, so give me a call at 717-309-2913 or email me at cbeatty@prudentialhomesale.com. and I can give you details.
1 vote Thank Flag Link Mon Oct 7, 2013
Hello Cynthia,
Your answer is incorrect.
Flag Mon Oct 7, 2013
On FHA, no.

If you are using a conventional loan, then it's possible.

If you are putting 25% down or more than there is no difference in rate. However, if you are putting less than 25% down then there is a .75% pricing adjustment assessed due to the risk factors of a condo.

What this means to you in layman's terms is that you would either have to A) pay a .75% fee to obtain the same interest rate - On a $200,000 mortgage this would equate to $1,500 in additional fees; or B) take a slightly higher rate, most likely 1/8% to 1/4% - on the same $200,000 loan this would cost you approximately $15-$30 more per month.


Tony Grech | Mortgage Loan Originator | NMLS #977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 ext. 278
Mobile (313) 622-7383
1 vote Thank Flag Link Mon Oct 7, 2013
Thank you, very helpful
Flag Mon Oct 7, 2013
NO, Interest rates are based at time of loan for the mortgage rate! Acquiring a mortgage is based on amount of principal, amount of up-front down money! Condo mortgage is the same as a residence mortgage and timing is everything.
1 vote Thank Flag Link Mon Oct 7, 2013
Not with FHA Or if you put 20% down . But you will have condo fees to pay. better find out what they run and what they cover before purchasing.
Web Reference: http://www.cbsp.com/sharris
1 vote Thank Flag Link Mon Oct 7, 2013
Hello mob812
On a conventional loan over 75% loan to value you pay a little bit more but not on FHA.
1 vote Thank Flag Link Mon Oct 7, 2013
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