how to figure mortgage payment

[George Chong]

Originally Posted by greg_atlanta

I'm hoping to have enough of a down payment to avoid PMI, but that won't stop me if I find my dream house (at the right price) before I have 20% down.

I know BofA has been advertising no-PMI mortgages. Is that a common offering with other banks? Do you pay a premium elsewhere (like higher APR)?

You will pay for it one way or another. When you are ready - I would also shop your loan with a mortgage broker as they have access to the same programs that the bank does.

In general terms of an attached condo's utilities - your answer is yes because you have other units insulating your unit. In other words, you are sandwiched in between units.

[jforeman]

Originally Posted by greg_atlanta

I'm hoping to have enough of a down payment to avoid PMI, but that won't stop me if I find my dream house (at the right price) before I have 20% down.

I know BofA has been advertising no-PMI mortgages. Is that a common offering with other banks? Do you pay a premium elsewhere (like higher APR)?

Yeah, when you get no PMI they just build it into a higher interest rate. Then if they want they can just purchase the PMI policy themselves.

This can be good or bad. PMI premiums are not tax deductible (although they may be these days, anybody know?) whereas mortgage interest is, so it might be to your advantage to pay a higher interest rate instead of PMI. On the other hand, PMI can be cancelled once you reach 20% equity. An interest rate is for life. If it were me, I wouldn't get hung up on PMI. Look at the entire cost of the loan. Compare monthly payments and fees in total.

[lane421]

Originally Posted by greg_atlanta

So taxes are 1.5% of the appraised value of the home paid on an annual basis? I can opt for a one-time annual payment instead of paying them into an escrow account, right? What time of year are taxes normally due? (Do escrow accounts pay interest?)

Association fees used to bug me, but I got over that when I hear how much my coworkers pay for utilities on their single family homes in the 'burbs. A newer condo in a high-rise is likely to have much lower heating/cooling costs, right?

The 1.5% will be of the tax assessed value - which may or may not be what you paid for the place. There is lots of controversy going on in Fulton County right now of people buying places for much less than the tax value - so that would be a good question to ask when purchasing. And yes - you do not have to escrow - taxes are due in September/October each year and you can just pay when you get the bill. Be aware that you will get 2 if you are also within City of Atlanta limits. And escrows do not pay interest - so if you look at it that way - maybe it is better to hang onto your money depending on what kind of saver you are!

I can speak for a townhouse - my monthly electric averages $75/month - which is very low compared to a SFH. As long as you feel like you are getting value for your dues each month - HOA fees can be a good thing.

[greg_atlanta]

Thanks... I just read the same thing in Kiplinger's today about no-PMI B of A mortgages having a higher interest rate, so it's just a gimmick.

I think I'll wait until I have more than 10% down, maybe 15%.

[ktalley]

[quote=greg_atlanta;3765717]I may be a first time home buyer in the next year or two, will probably be looking at 2 BR/2 BA condo/townhome. Right now I'd be comfortable with a monthly payment of $2000/mo (with roommate helping out). I have no debt and 800+ FICO score.

If I get a mortgage for $300K, that's a payment of $1800/mo for 30 years @ 6% APR. How much more could I expect to pay in taxes and insurance in Atlanta, Fulton, or Dekalb? Ballpark figures are fine.

I would include association fees in the total payment, but I can figure that separately for each property.



Greg, just Google mortgage calculator . There are a million of them. 1800 sounds right.