Bar W Homes Mortgage Estimate for Deepthi
by Alfonso "Fonz" Rodriguez @ Pinnacle Realty Advisors
  
Curent market rate on a 30 year fixed conventional mortgage: 6.68%
As of 12/6/2024

 
The current incentive offered by the builder is the following:
- A fixed 4.5% FHA mortgage
- Or a fixed 5.5% Conventional mortgage
- $10,000 towards closing costs
- Fridge, washer, dryer & blinds.
 
With the current market rates between 6.5% - 7% it would cost you about $25,000 to get the interest rate being offered. The builder is paying that cost in order to offer you the reduced rate.
 
Below is a detailed mortgage estimate for both FHA or Conventional.
   
 
2409 Cattle Baron Trail, Leander TX 78641
4 Beds, 3 Baths, 2 Story, Study 2,110 sq ft, Single Story, East Facing @ $439,990
 
5.5% 30 Year Fixed Conventional Mortgage Estimated Payment: $3,327.86
 - Principle & Interest:$2,214.32
 - Property Taxes: $841.42
 - Mortgage Insurance: $142.12
 - Homeowners insurance: $80
 - HOA: $50
 - $50,000 down payment
 
 
4.5% 30 Year Fixed FHA Mortgage Estimated Payment: $3,143.40
 - Principle & Interest: $2,010.60
 - Property Taxes: $841.42
 - Mortgage Insurance: $161.30
 - Homeowners insurance: $80
 - HOA: $50
 - $50,000 down payment
 
 

  
2340 Bronc Buster, Leander TX 78641
4 Beds, 3 Baths, 2 Story, 2,310 sq ft @ $449,990, 2 Story, North West Facing @ $449,990

  
5.5% 30 Year Fixed Conventional Mortgage Estimated Payment: $3,357.45
 - Principle & Interest: $2,271.10
 - Property Taxes: $860.58
 - Mortgage Insurance: $145.77
 - Homeowners insurance: $80
 - HOA: $50

 - $50,000 down payment

 

 

4.5% 30 Year Fixed FHA Mortgage Estimated Payment: $3,218.18
 - Principle & Interest: $2,062.15
 - Property Taxes: $860.58
 - Mortgage Insurance: $165.44
 - Homeowners insurance: $80
 - HOA: $50

 - $50,000 down payment

 

 

It seems to me that going FHA would be the better way to start off to get the lower overall payment.