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Old 05-05-2004, 09:16 AM
KillarneyRose KillarneyRose is offline
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Join Date: Apr 2001
Location: Naptown
Posts: 6,608
Hi Moe.ron! That's a beautiful house, by the way As for your questions:

1) You usually put down either 5%, 10% or 20%. Generally, the more you put down, the lower the interest rate. Also, if you put down 20% or more, you won't have to pay something called "mortgage insurance" which is just what it sounds like, insurance so that if you default on the mortgage the company that made the loan can recoup its money.

2) The taxes all depend on the locality and perhaps the zoning. I do know they are based on the municipality's assessment of the property. This information is all public record so you could find out from your city government.

3) Hmmm, don't know anything about forming a corporation.

PS I am not sure, but I don't think you can borrow an amount over what the house is appraised at. Once again, that's something that benefits the mortgage company. If you defaulted on the loan but owed more than the house was worth, the mortgage company would lose that money.

PPS I plugged some numbers into a mortgage program for you and found that if you pay $290,000 with 10% down your mortgage amount will be $261,000. $261,000 at 6% interest (that's kind of high but just to give you an idea) over 30 years would be $1,565.00 per month before taxes and insurance.

Hope this helps a bit!
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Last edited by KillarneyRose; 05-05-2004 at 09:19 AM.
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