It does matter on the down payment. You will probably have to put 5% down for a foreclosure. Usually foreclosures do not pass the FHA appraisals. Just because they need some work.
So 5% down of 175K is $8750
For a loan amount of $166,250 @ todays rate of 5.25%
Monthly Principle & Interest --- 918.04
Taxes & Insurance ---(a rough estimate) $400
Mortgage Insurance (a rough estimate) $100
Thats around what you will be spending monthly.
If you have any other questions, feel free to contact me at anytime.
Thanks Sabrina, Best of Luck
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That said, a $175K house in South Boston, would be about $1861 in taxes (totally depends on what it's currently assessed at, but if it sells for $175K ... it'll get to $1861 annually in the next year or so) ... Homeowner's insurance, depending on what kind of policy you get might run you about $1000 a year and perhaps you get an FHA loan so you get a decent rate ...
Just to take a stab at it, for a $168, 875 loan (that's putting 3.5% down for an FHA) ... I'd say you are looking in the ballpark of $1500/month ... of course, if you put more money down, get a better rate, pay less taxes or any of those things, you can reduce your payments.
If you're dealing with a bank owned, you'll also need to make sure you factor in the upfront money for fire inspection, home inspection (no contingency) and closing. If you are a first time home buyer, you may qualify for the $8000 tax incentive ... I'd be happy to help you with this if you're interested in having professional help in this transaction. Bank owned properties tend to factor agent commissions into the process since they rarely want to deal with these transactions themselves and the buyer's agent tends to do most of the work.
Hope that helps.
You would first need to find out what the taxes are yearly. Then we would need to know what your interest rate is (you would need to get at least a pre-approval to get that figure) . Then we need to know how much of a down payment you are planning to make in order to determine what your mortgage would actually be. If you don't have at least 20% down on a conventional loan there is another cost of PMI that comes into play.
May I suggest that you seek out a reputable real estate agent in your area to help you with this very important and specific answer that you are seeking?
Linda S. Cefalu, Remax Realty 100
Realtor, ABR, SRES, CDPE
Recipent Five Star Agent Aware
BNI member in good standing