How much would closing costs be on a 100k condo?
How much do you think closing costs should be on a 1 bed 1 bath condo with 626 sq footage in a nice area. There would be two loans on the condo. 80/20 loan. No PMI. $ 600 payment per month on the first loan, 6.5% interest.. $ 180 per month on the second loan. 9% interest. NO MONEY DOWN. Interest only payments. All I want to know is how much do you think closing costs would be? I was quoted around $ 7,000 for closing costs. If I am putting no money down and paying no PMI….its a good deal. Banks or credit unions have to make money as well as mortgage brokers.
My buddy had almost same exact condo with same scenario EXCEPT….he purchased with no money down AND paid no closing costs. But he is screwed because he got into a 3/1 ARM teaser rate. His condo payment is $ 800. It is going to double next year. Mine rate is fixed for ten years. hence I would rather pay $ 7,000 in closing costs up front rather than being slammed with double payments after ARM adjusts. What do u guys think?