Purchase Price = $152,659
Seller Concessions = $9159.00 (6% = maximum allowed by FHA)
Deposit = $500.00
Total Due at Closing = $143,000
Downpayment = $4,580.00 (3% of purchase price)
Closing Costs = $7,944.62 (Est)
This is where I get confused because the seller is technically paying the closing costs but it just results in the purchase price being reduced by that amount. The whole process is very confusing and I've never been good with math. Also, I have a very real and scary legal comittment to make sure Boyfriend is not getting ripped off. I don't think he is but I can only imagine how intimidating the process must be for people out there that aren't romantically involved with their real estate attorneys.
So, Boyfriend's Mortgage will be $150,300, which will work out in monthly payments of the following:
Mortgage = $937.68
Taxes = $175.00
PMI = $61.38
HOA dues $390.00
Total Monthly Payments = $1,564.06
So yes for all you apartment dwellers out there dreaming of condo ownership, here's an FYI: owning IS more expensive than renting when you factor in taxes and HOA. But, there are lots of perks we have found about condo ownership that have their own economic value. Here are the facts:
Boyfriend's building has FREE basic cable! Savings = $65.00 a month!
The building will soon have FREE wifi!! Savings = $50 a month!
Boyfriend can transfer his stuff from a private storage unit to the storage that comes with his unit! Savings = $25 a month!
Also, his crackhead neighbors will never again knock on our door looking to trade jewelery for cash. Priceless!
And the best part of all, the previous owner is giving us free stuff, including this free futon! Woo-hoo! (Okay, not us, but him. I still have my own apartment. Sigh).