The seller is paying 3% for closing cost of my 205,000 offer for a 190,000 home. I'm giving 3.5 down, so how much will I finance

Asked by Jacky, 90221 Tue Oct 6, 2009

? How much will my mortgage be?

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CCC, Home Owner, San Diego, CA
Tue Oct 6, 2009
Your (3.5%) down payment is calculated on the selling price ($205,000).
The 3% Closing Costs could be calculated on selling price or mortgage amount. Ask you Realtor about it.
Assuming the you have an FHA mortgage, you mortgage amount will be,

3.5% = 7,175
and if you are rolling over the Up Front Mortgage insurance, that I believe is 1.75%, please correct me anyone if I am wrong, then $1,508
So, your ESTIMATE mortgage amount will be: $199,333.

But, PLEASE, contact your Home mortgage Consultant for a detail explanation of your mortgage expenses based on the specific property and exact closing date.
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Kyle Groves, Agent, Sacramento, CA
Tue Oct 6, 2009
For FHA loans, as long as the home appraises at your purchase price, you will finance 96.5% of the purchase price, in this case $197,825, and you will also add the Up front Mortgage Insurance Premium, which in most cases I believe is 2.25% of your loan amount or $4,451, giving you a total amount financed of approximately $202,276.

If the home does not appraise at $205,000, and instead appraises at $190,000, you will need to bring in $15,000 to start, then add 3.5% of $190,000, or $6,650, making your down payment $21650, which gives you a loan amount of $183,350, plus your Up Front Mortgage Insurance Premium of $4,125, giving you a total amount financed of approximately $187,475.
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