Too Good To Be True Loan - Denver Colorado
BASED ON $225,000 PURCHASE PRICE
RATES EFFECTIVE 1-24-2012
|
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Sellers Pay 3% of Buyers Closing Cost
FHA |
Sellers Pay 3% of Buyers Closing Cost
5% Down Loan |
Seller Pays 3% to Buy Rate Down
0% Down Loan |
Buyer Discounted
0% Down Loan |
| Sales Price | $225,000 | $225.000 | $225,000 | $218,250 |
| Down Payment | $7,875 | $11,250 | $0 | $0 |
| Total Loan(s) | $219,296 | $213,750 | $225,000 | $218,250 |
| Note Rates | 4.125% | 4.25% | 3.25% | 4.00% |
| Payment | $1,063 | $1,052 | $979 | $1,042 |
| Property Taxes | $158 | $158 | $158 | $158 |
| Hazard Insurance | $90 | $100 | $100 | $100 |
| Mortgage Insurance | $210 | $139 | $0 | $0 |
| HOA's | $0 | $0 | $0 | $0 |
| Total Payment | $1,521 | $1,439 | $1,127 | $1,290 |
| Years on Loan | 30 | 30 | 30 | 30 |
| Closing Date | 3/30/2012 | 03/30/2012 | 03/30/2012 | 3/30/2012 |
| Estimated Cash Required | $7,418 | $10,793 | $1,182 | $1,189 |
| APR Rate(s) | 4.341% | 4.389% | 3.251% | 4.002% |
Loan Comparison Notes
Jerry Becker-West USA Realty, 303-972-8352
1. Loan #1 example, is a normal FHA loan which requires a 3.5% down payment. In the majority of purchases in today’s market, the sellers will usually agree to pay up to 3% of the loan amount to cover the buyer’s closing cost.
2. Loan #2 example is a conventional loan with a down payment of 5%. Like the example for the FHA loan, the seller is paying 3% of the loan amount towards the buyer’s closing cost.
3. Loan #3 is the NO DOWN LOAN. Since there is no closing cost with this loan, only pre-paids, the buyer didn’t need the seller to pay 3% towards their closing cost. Instead, the buyer had the seller pay the 3% to buy the rate down. With this loan, each 1% paid at closing can buy the rate down ¼ percentage point. In this example, the rate was bought down ¾ percent from the market rate for 30 years.
4. Loan #4 is where the buyer elected to not have the seller pay to buy the note rate down. Instead, the buyer discounted the price by 3% and went with the market rate for the NO DOWN LOAN. This will give the buyer a slightly higher payment, but a lower purchase price.