I’m sure you all know by now that I don’t have any issues with sharing our financial information. I can’t help myself.
Why do I do it? Is it to gloat or get pity? Nope, I do it in hopes that by sharing our actual numbers, it will help others. While I don’t expect anybody else’s financial situation will mirror my own, I still think it can help.
Whether it’s an example of what not to do, what to do, how small changes can add up or just for entertainment purposes…it might benefit somebody out there.
Since we just bought our first house ever (yay!), I’ve just got to share those numbers with you all. Just a few years ago, I thought we would never be able to own a house. Now, after a ton of hard work and persistence (not always 100% on track) it’s become a reality.
Lender’s guess: Between $1,025 and $1,050.00
My safe guess: $1,100.00
Actual amount: $999.39
Note: We’re only paying $124.39 more than we were paying to live in our tiny 2 bedroom apartment with no garage. Not too shabby.
Interest & Loan:
Loan: 30 year fixed
Interest Rate: 3.75%
Annual Percentage Rate (APR): 4.319%
Mortgage Monthly Payment Breakdown:
Principal: $999.39 – Escrow of $196.03 = 803.36 – Interest
Earnest Money: $1,000.00
Appraisal: $400 appraisal
Home Inspection: $330.00
Total = $1,730.00 *$1,400 was refunded after closing
Purchase Price: $170,000
Guarantee Fee (PMI through USDA): $3,469.00
Total Closing Costs: $4,250.00 *paid by seller
Total Loan Amount: $173,469.00
There’s still some stuff I’m not too sure about. The guarantee fee for example, is that a one-time thing? I hope it is, otherwise we’d be really screwed. Should I know this? Yes. Is it really irresponsible of me not to know this? Yep.
Also, if our property taxes raise in the future…will our monthly mortgage payments increase? Or will the amount applied from our payments to the escrow account increase and the amount applied toward our principal decrease? I’m so bad, I know it. I’ve already been kicking myself in the ass, so don’t give it to me too bad.
Just for fun: closing took us 1 hour and 10 mins, consisted of 164 pages, 78 signatures (of mine), 87 signatures (of Honey’s) and around 60 initials (for each of us). We got free Dr. Pepper and 2 pens (without stealing them).
What do you think? Good, bad, awful?