You’ve found the perfect property and you’re ready to make an offer. But have you done the math? Here are a few things to think about:
What are the costs of owning a property?
- Mortgage payment
- Taxes – County, Municipal and School
- Homeowners Insurance
- Garbage and/or Recycling fees
- HOA (HomeOwner Association) dues or assessments if applicable
Got all that? Good.
- APR – what is the annual percentage rate for your mortgage? Is it fixed or variable?
- Term – how many payments and when are they due?
- Down payment – this is usually about 20% of the purchase price
- Closing Costs – these can include applications fees, title search fees, title insurance, property fees, and attorney charges.
CALCULATE THE NUMBERS:
Try our calculator – it’s FREE!
If you are purchasing—put in your Sales Price, Loan Amount if you are obtaining a mortgage—and you will receive your title insurance premium and an estimate of recording fees and transfer tax.
If you are refinancing—put in your Loan Amount and you will receive the Title Insurance Premium for the Lenders Policy and an estimate of recording costs.
OR – upload your sales contract and we’ll contact you.
HERE ARE A FEW IMPORTANT DEFINITIONS
Annual Percentage Rate (APR) – this reflects the cost of all credit and finances as determined by the length of a year – including the interest rate, points, broker fees, and other credit charges obligated to the buyer.
Private Mortgage Insurance – PMI is typically required if a borrower puts a down payment that is less than 20% of the home’s value. The charge is usually included in the monthly mortgage payment in an attempt to protect the lender from possible default.
Down Payment – Like many transactions involving large sums of money, the mortgage process involves a down payment – the amount a homebuyer pays in order to make up the difference between the purchase price and the mortgage amount. 20% of the purchase price is recommended, and often required to avoid having to pay for PMI. (see above)
Closing Costs – these are sometimes called transactions costs or settlement fees and may include various fees and charges associated with finalizing the purchase such as application fees, title insurance, property fees, settlement document fees and attorney fees. The Real Estate Settlement Procedures Act ensures that the borrower receives a good faith estimate of closing costs within 3 days of your loan application.
Truth-In-Lending Disclosure – Required by federal law, the TIL explains all lender required costs for the loan including, but not limited to, the APR, the terms of the loan and the amount and due dates of all payments necessary to repay the loan.
IF YOU ARE SELLING
Below is a helpful Moving Checklist including how to make the move easy for your pets!
The more information you have the better! And, if you have questions, don’t hesitate to reach out to us.