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Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville

Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville

Why haven’t you bought a home yet?  Is a 20% down payment keeping you from buying a home? Have you rented for a long time & just aren’t sure?  Are you a long time renter in the market to buy?  Living in the King of Prussia, Plymouth Meeting, Phoenixville or the surrounding areas? Well stop renting already!  FHA could be the answer you’re looking for.

Okay let’s use some real world #’s to help you appreciate what FHA can do for you.FHA king of prussia plymouth meeting phoenixville

How much are you borrowing

In this example the client (you) are buying a home using FHA (Line A).  Current rates are around 3.75%/5.092% APR (B) for a 30 year fixed (C).  The purchase price is $200,000 (D) & you will put down FHA’s minimum down of 3.5%.  Your base mortgage will be for $193,000 (E) & your total mortgage $194,930 (F) due to the Upfront Mortgage Insurance required by FHA (email if you want more info on mortgage insurance).

Your monthly payments

Your principal & interest payment will be $902.75 (G), property taxes guestimate $250 (H), monthly mortgage insurance $184.96 (I), homeowner’s insurance guestimate $50 per month (J) for a grand total of $1,387.71 total monthly payment (K).

Total cash needed at closing

Your down payment is 3.5% (L) of $200,000 (D) which is $7,000.  The closing costs are $5046.25 (M), the escrows/prepaids $4,000.41 (N) & Upfront Mortgage Insurance $1,930.00 (O).  Your total costs are $9046.25 for closings costs (M) & escrows/prepaids (N).  The seller* can pay for the closing costs which is $9,000 (P).  Remember that in line F we are lending you the money for the upfront mortgage insurance (O).

Bottom line out of pocket = $7,046.66

Now I’m sure I lost a few of you somewhere in the translation so click below for a video explanation.  If you have any other questions give me a call or send me an email!

Click HERE for video  

 FHA king of prussia plymouth meeting phoenixville

*You can negotiate at the time of your offer for the seller to pay for your closing costs. Please consult me PRIOR to signing a Equal housing opportunity fha king of prussia plymouth meeting phoenixvillecontract!!

Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

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Comment balloon 0 commentsJoe Gonzalez • October 31 2011 10:33AM
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