The last owner had a mortgage on it payable to Argent for $340k. That is quite a difference between the low $100k list priceâ€¦ so maybe the bank didn't like how low the agent was marketing it. Time will tell.
As for monthly payments... here is a great example of how, as a buyerâ€™s advocate, I don't have to refer buyers to another contact to get your important, and very relevant questions answered...
To simplify things... this would be the ballpark payment if you have excellent credit, and your income qualifies just fine, and you put 20% down:
$113,000 purchase price
$22,600 down payment, or 20%
$90,400 loan balance
5% interest rate (depending on rates when we lock)
$492- 30 yr principal and interest pmt
$103- taxes per month
$60- homeowners insurance
$655 per month total
Also, you'd be able to write off approx $100/mo, so your effective payment would be closer to $555.
Compare this to your existing rental payment to determine your total relative additional cost of savings.
Keep in mind there is also legislation that recently passed about a home buyer credit of up to $8,000. If you are looking for a great CPA who can help you understand how this would benefit you, let me knowâ€¦ I would be happy to share my awesome CPAâ€™s info.
Further, hereâ€™s what you would need to budget for bringing cash to deal:
$22,600 down payment
$3,000 for closing costs
$900 for a point to buy down the rate to approx 5%
$250 for an appraisal
$350 for a home inspection
$2,000 for prorated tax, and prepaid insurance and interest
$1,500 extra in a bank account to prove you have reserves.
It will likely cost you a lot less that this amount for the 20% scenario but rather than paint a rosy picture, here is a realistic worst case scenarioâ€¦ if every agent did this and if every homeowner knew what they were getting into, then we would have a much stronger market todayâ€¦ but, hey, you also wouldnâ€™t be getting this home for $113k.
With a FHA program you can bring as little as about $6,000 to the deal, and we can negotiate the seller to pay most of your costs. But it would cost you much more in the long run.
Now the above scenario assumes quite a lotâ€¦ that the price would really be that low, and that you have 20%, and good creditâ€¦ there are many different ways this could play outâ€¦
If the home was sellable to you for $113k, then you'd likely put down 20%. If you didn't have 20% then you could put down 10% and it would get more expensive with a monthly mortgage insurance premium. If you didn't have 10%, then you could go FHA putting down only 3.5%. This would get still more expensive because the rate would be a bit higher, the monthly mortgage ins premium would be applied...and you'd also have an upfront premium tacked right on to your balance of $1,700 to be paid off when you satisfy the loan.
For help in finding out exactly where things stand for YOUR unique situation, give a call and I will give you an exact picture within 10 minutes. And then we can use this understanding to communicate a strong offer to listing agents who represent properties that match your specific search criteria bases on goals that will align with your clarified long term objective.
I forgot to answer the second part of your question... What will the payments look like? That will depend on many factors. Such as how much you put down, your FICO score, debt to income ratios, and what type of loan you get. That being said it is best to contact a mortgage broker that your feel very comfortable working with. If you don't have one, I can recommend one to you who I have worked with for 20 years. Very honest and reliable is extremly important.
Thanks again for lookking. If I can be of further assistance, please don't hesitate to call.
The property you have inquired on has been taken off the market. I don't know why yet. It is bank owned and was listed at $124,000 then reduced to $112,000 off the market after 51 days. I am looking into the matter of why and what is going on with the home.
In the meantime here is a link for additional photos of the home. Please feel free to call me back directly so that I can help you further with this home or anything else that may be of interest for you.
Thanks for your interest. Please feel free to visit my website for other bank owned homes for sale.