How much will I need to save to buy a house in Northeast Philly? [Real NEastate]

PlanPhilly staff

August 21, 2013

Q: I’m trying to get an idea of how much I will need to have in the bank to buy a house in Northeast Philly for $150,000. How much money will I need?

A: How much money you may need will depend on what type of loan product you qualified to get. Below are just two estimates for a loan for $150,000 on a typical Mayfair home with yearly real estate taxes of $1,585.00, an interest rate of 4.7 percent and an estimated settlement date of Nov.15, 2013.

CONVENTIONAL LOAN 20% DOWNPAYMENT*

Purchase Price:	$150,000.00
Closing Costs:	$6,842.51
Lender Escrows:	$1,453.14
Tax Reimbursments to Seller:	$338.77
Total Acquisition Costs:	$158,634.42

Mortgage Amount:	($120,000.00)
Total Mortgage Amount:	($120,000.00)
Seller Assist:	($0.00)

Estimated Cash Needed to Purchase:

$38,634.42

Estimated Monthly Payment = $1003.44

FHA LOAN 3.5% DOWNPAYMENT*

Purchase Price:	$150,000.00
Closing Costs:	$9,304.99
Lender Escrows:	$1,766.76
Tax Reimbursments to Seller:	$338.77
Total Acquisition Costs:	$161,410.52

Mortgage Amount:	($144,750.00)
MIP Financed:	($2,533.13)
Total Mortgage Amount:	($147,283.13)
Seller Assist:	($0.00)

Estimated Cash Needed to Purchase:

$14,127.39

Estimated Monthly Payment =$1,052.76

*These figures are estimated settlement costs only. These numbers will be adjusted as of the date of the final settlement, if necessary. The estimated monthly payment may be higher or lower because of the mortgage interest rate, type of loan and/or length of term of repayment. Buyer should consult their mortgage lender regarding exact mortgage costs and terms.

Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.

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