How much money do you need up front for the down payment and closing costs for the purchase of a home?

One Response to “How much money do you need up front for the down payment and closing costs for the purchase of a home?”

1. Ryan S says:

   September 29, 2010 at 3:37 pm

   Take the purchase price of $799,990 and multiple it by 20%, this will give you the figure for the down payment which equals $159,998.

   Now subtract $159,998 from $799,990 to give you the base loan amount, this equals $639,992.

   Next take $639,992 and subtract the $2,000 (closing costs), this equals $637,992.

   To figure the 2 points (or 2%, every point is one percent of the loan amount) we’ll multiple .02 x $637,992, which equals $12,759.84.

   The last step is to add the following: $159,998 (20% down payment) + $2,000 (closing costs) + $12,759.84 (2 points) =
   $174,757.84.

   This will give you a close estimate of the total you will need to close this transaction. Keep in mind that the fees may go up or down.

   Let me know if I can be of any further assitance.

   All the best!

   Ryan Smith

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