Hello PF, I am trying to figure out all of the fees that come from getting a VA Mortgage Loan. Which fees are considered a part of closing costs and which aren't. I am trying to understand the right way to add on 3% closing costs, 1% maintenance, 1% loan origination, and VA funding (increases loan amount).
How much savings would I need?
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I have excellent credit, so I expect my mortgage interest rate to be around 2.75-3% on a 15 year loan from NFCU. I plan to take out maximum of $417,000 or a jumbo loan. The houses I am looking at are in $450,000 range.
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I know VA has "jumbo loans" where you would have to put 25% downpayment on amounts exceeding $417,000. There is a VA funding fee that fluctuates based on the downpayment as well.
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Is that downpayment percentage on the cost of the house or the loan amount? For example, if I take a $417,000 loan and use $33,000 of savings to purchase a $450,000 house, would the downpayment be considered zero by NFCU?
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There is also a loan origination fee of 1%. That fee is based on $417,000 or $450,000 above? I guess my main question is whether all my calculations should come from taking out a jumbo loan and putting downpayment on a loan or downpayment on the house itself.
Here is my math for a "jumbo" loan:
- $450,000 loan
- $33,000 at 25% = $8250 downpayment, $13500 closing fees, $4500 maintenance = $26250 savings needed at minimum
- $4500 origination fee, VA funding fee is 2.15% for small downpayment - $9675.
- Total loan amount is $464,175 - $8250 downpayment = $455,925 principal
If I increase my downpayment to 5%, VA funding fee goes to 1.5%.
- $22,500+$13,500+$4500 = $40,500 savings needed.
- Total Loan amount would be $450,000 +$4500 origination fee + $6750 VA funding fee = $461,250 - $22500 downpayment = $438,750 principal
I calculated my monthly payments from examples above for the 15 year loan at 2.75% rate to be $3094 and $2977 respectively. Property taxes in the area are around $500 a month, Housing Insurance around $150. This should be affordable if my math is right, obviously paying $100 less a month for 15 years would be preferable.
How much savings do I actually need? Am I missing anything or $25,000-$40,000 should be enough?
Submitted August 05, 2017 at 08:23AM by Getfitbro http://ift.tt/2v6A8t7
