Is This Accountant Ripping My Brother Off With Buying A House?
Mу brother іѕ 22 аnԁ wanting tο bυу a house thats foreclosed, hе іѕ аƖѕο using hіѕ fiance аѕ a co-signer аnԁ thеу аrе using hеr credit аѕ well аnԁ hеr income, ѕο thеrе's 2 incomes.
Thеу јυѕt called аnԁ tοƖԁ hіm hе саn ɡеt something fοr $120,000 аnԁ hе's looking аt $1000 a month, thаt doesn't include аnу type οf insurance οr anything.
Iѕ hе getting ripped? ѕhουƖԁ hе try someone еƖѕе, аnу tips аbουt first time buying wουƖԁ bе ɡrеаt!
i dont know…. to me it sounds like a lot… what is the interest rate? how much is he putting down? that all depends on how much your monthly payment will be…..
if it helps, in my situation, we are getting a mortgage for $92,000 with 4.85% apr. our TOTAL mortgage payment is $648, and that includes PMI, homeowners, interest, taxes, and principal.
Sounds right.
120,000 (30 year, 6% interest rate, 5% down)
Principle and Interest: $683
Property Taxes: ? (? $200 ?)
Insurance: ? (? $70 ?)
Estimated Condo Fees: ? (? $200 ?)
He should ask for a “Good Faith” loan quote.
The price is going to include the principle on the loan, interest on the loan, state property taxes, insurance, and they sometimes include in there condo dues.
Your brother is getting a loan from an accountant?
It’s not unheard of but it is odd.
A $120,000 with a monthly payment of $1000 sounds like at least a 9% interest rate. That does seem like a rip off. W/out having more info on the terms and length of the loan it’s hard to say for sure.
But a $120,000 loan with a 30yr term at 9% would yield a monthly payment of $965.
That same loan for 15yrs at 5% would yield a monthly payment of about $950. That’s alittle more reasonable.
that sounds about right. why can the person not give your brother an interest rate and detail break down of the $1,000? Until you see the details you cannot be for sure.