Re: Buying House information
2) Actual payment
If your loan is escrowed you will be given the actual payment at closing. However, don't expect this payment to be static. Plan for your property taxes to increase at least 5% each year (I'm not saying it will, but plan for it). Also, plan for your house insurance to nearly double after the first year (and be prepared to call around to switch)
If you put down less than 20% or didn't take out what is called an 80/20 loan (which is 2 loans, one at regular interest rate and one at a much higher interest rate) then you will have to pay PMI - this is insurance for your mortgage company. If you default, then the insurance will cover a portion of the principle you owed. This will vary greatly. In our case it's always been between $50-65.
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