Why are my monthly payments showing to be so high?
 

Thinking about buying a house

purchase price 110k
Down payment 45k
Interest rate 2.75%

Loan is FHA

Monthly payment estimated by bank 775 a month

Monthly payment estimated from zillow: 625 a month

How is there an extra 150 a month ?

Property taxes, homeowners insurance, flood insurance if applicable.

zillow includes home owners insurance at 800/yr as well as property tax rate of 1.125 which is close if not almost exact to my area

Just look at your good faith estimate and other paperwork to see the added costs. Because of the whole housing fiasco over the last few years, they made the forms pretty simple to trace. I just closed on a house last week and I was able to match up exactly with any of the calculators once I knew flood and homeowners insurance and property taxes.

Unfortunately your post doesn't give much information, definitely not enough for us to solve this for you.

Are you financing any closing costs that would account for the higher monthly payment?

Ask to see the good faith estimate.
As others have stated :property taxes, home owners insurance, flood insurance.
MIP-mortgage insurance-with the down payment, you should be able to opt out, but you DO have to opt out, it is not automatic.
Homeowners association? Some neighborhoods have one. If the street that the home is located on is NOT a city street, there are usually greater costs due to the road needing to be maintained. There is a neighborhood that assesses a fee for "community improvement" in the middle of a large suburb-just one street has a monthly assessment. in the entire suburb. Weird, but something to check into.
Liens
Assessments -are there sidewalks being built, other city/county "improvements" that you will be liable to pay?
Check the length of the loan-is Zillow x # of years and the bank Y?

BTW-specify that the bank use the same title company as the previous owners. Because the title company has already performed the search for the previous loan/s, the $$ is much lower than if a new title company has to search. A savings of a few hundred anyway.

Congrats on buying a house!

Sounds like PMI.

Looks like you are doing 15 years.

this is basic homebuying expense. MI, insurance and property taxes is my guess.

This is just the beginning when it comes to ongoing expenses with a house. Property taxes tend to go up and inurances rates increase. Every year your payment will likely change.

Not when their LTV is 60%.

Ever think zillow is wrong? Try using a different calculator, say from a different bank.

100% right about the LTV. missed that.

I wonder if the bank forgot to take off the MI payment portion.

It's possible. If so, it should be quite clear in the cost breakdown. With my two different mortgage companies that I've dealt with, they always have broken down payments in terms of principal, tax/insurance, and PMI.

Right again. If she looks at the 2 breakdowns it should be easy to figure out.

Why would you be doing and FHA loan with such a large down payment?? Do a conventional loan and skip out on PMI.

My calculations show that your Principal and Interest payments should be $441.10 on a 15 year loan or $265.36 on a 30 year loan. Now add on your property taxes and insurance (annual amounts divided by 12) and you should get what your monthly payment should be.

If you're getting charged PMI on this loand go to another lender!!! You should not have to pay this with a down payment over 20%.

I agree. Its FHA which has the PMI. Go the conventional route since you have enough down payment.

As Bonk pointed out to me. FHA loses MI after 20% down payment. It can't be MI.

Not disagreeing with going conventional. Maybe she has score issues (but 45k down would sure help)?

FHA requires PMI regardless of how much money is put down.

Don't think so.

FHA requirements include mortgage insurance primarily for borrowers making a down payment of less than 20 percent.

http://www.fha.com/fha_requiremen...urance.cfm

You sure that your property taxes are only 1.125%? That's awfully low. Heck, in my area, property taxes are 3%. That could make a big difference on your monthly payment.

Check your county assessor's website for comparable properties near you and see what they're paying for property taxes.

Edit - I just checked here:

http://www.davedowns.com/propertytaxes.htm

And I see a rate averaging around 2.5%.

So, your base mortgage of $65,000, at a 2.75% interest has a monthly payment of around $441.00 a month. Insurance at $800 a year has a rate of $66.00 a month. Property taxes on an assessed value of roughly $110,000 at a yearly rate of 2.5%, for a total of $2,750, or ~$230.00 a month.

Add all that up, and you get a monthly payment of roughly $737 a month. That's much closer to the bank's estimate of $775 a month.

Just to make people feel bad. My total annual property taxes City and Count are 407 a year.

Like the OP my mortgage is 68k. My total payment is 435 ish for all. Va loan, no PMI.

Location, location, location.

yeah, you're not kidding about the 3 Ls. A 68k mortgage will get you a nice garage around me :lol:

68k got me 1400 sq ft brick sitting on an acre with a 2 car covered carport.

But the median household income is 36k.

complete with some rats for pets? :lol:

C'mon OP, don't leave us hanging! We want to know where the discrepancy was with your monthly payments! :whee:

OP, where are you?

Check OP's past posting history. He has a history of creating a thread, and then dashing; never to return again... :whee:

OP is my mom?