Great Math Info From A Local Lender!

This dropped into my email this morning & I thought it was great to share....let me see if I need to correct any grammar! And, yes, I've added some of my comments in his in purple below as well.

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I was going over a few files last week and my brain started to tingle, and a light went on, which at my age, that is rare! He's like 60 tops! I was going over a file that had a $300 HOA and 2.3% Property taxes. Standard is about 1.33. So I was thinking with my math brain and what is the true cost of this home in comparison to a comparable home with a similar payment with these low interest rates.  Well, I am excited to say that I have the answer!
 
So if a client is to buy this house at $550,000.00 with a $300 HOA and 2.3% Taxes they will have the following payments for Principal Interest taxes and Insurance:

3.5% down FHA - $4042.97
10% down conventional  $3619.34
20% down conventional - $3250.43  

Now what could they get for the same payment with 1.25% Really, more like 1.33, taxes and say a $50.00 HOA? 
3.5% gets them a $770,000.00 purchase price with a payment around $4042.97
10% down conventional gets them a house at $685,000.00 with a payment around $3619.34
20% down with a  conventional loan gets them a house valued at $710,000.00 with a payment close to $3250.00
 
Because rates are so darn low, HOA and additional taxes seem to be a larger portion of the payments on a lot of properties.  $25,000 in loan amount is about $100.00 in payment at these interest rates depending on the type of loan you are doing. Wowza! So in comparing properties, a house with $500.00 a month additional property taxes / HOA should be compared to a property that is priced $125,000.00 more.  Yup, I wrote it and it is true… for now.  This will change when interest rates rise! Who knows when they will though!
 
Interest rates are still wonderful!  Rates have been below 3.50% 11 months in the past 60 + years.

• 30 year conventional loans are in the High 2’s for the most part!    
• 30 year Government Loans (FHA / VA) are in the mid 2’s
• High Balance Loans $510,401.00-765,600.00 are in the high 2’s and low 3’s
• Jumbo loans above $765,600.00 are in the low to mid 3’s.
• Bank statement loans – They are available with 15% down!   Hmm, we were at 10% down pre Covid.
• Stated income loans  - I have one bank with 30% down, but everything else has to be perfect!       
• 0 down loans are in the high 3’s - 660 credit score min right now!
• Private Money lenders are stepping in to a lot of business right now and we have many of those loan programs available.  35% down! 
• First time Buyers Tax Credits are back, but on a very limited basis!  20% Tax credit on the interest they pay!  Fabulous program! 

Interest rates are subject to change without notice!  Above are LA County Loan Limits. 

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Hopefully this helps you as you're out looking for homes! Well, at least while you're looking online for homes!