Phoenix Real Estate - Attention Home Buyers Part 2 Let’s do some math on a payment on a home purchased for $130,000 with 3% down on an FHA 30 year fixed loan at 6.25%. On a PITI payment of Principal, Interest, Taxes and Insurance your payment works out to roughly $7.64 per $1,000 financed. On this example after you finance back in the 1.5% FHA mortgage insurance premium your new loan amount would be just under $128,000.
On a $130,000 purchase your payment is roughly $978 per month. When financing with an FHA loan the seller can still contribute up to 6% of the sales price towards the buyers down payment and loan closing costs. Of the 6% seller contribution, 3% usually goes towards the buyers down payment and the other 3% is used for the buyers loan closing costs which includes the 1% loan origination fee. FHA also does not look at your credit score aka FICO score.
In the example above a home buyer can be into a home for as little as $1,000 to $1,500 total out of pocket and not have their first payment due for 30 to 59 days. Because houses are more affordable, the Feds potential rate lowering and the fact that your home is a place to live and not just an investment I ask you when will you decide that low is low enough?
A .25 drop in interest rate will make your payment another $27 lower, $54 lower at .5 percent of a rate cut. Visit www.HotPhoenixRealEstate.com to contact Rick and to explore your Phoenix real estate options. Approx. 6.5% APR on the above example.
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