Dear Tyler, I want to buy a condo in the Silver Lake / Los Feliz area, but I don’t know what I can afford. How can I calculate the monthly payment?
First things first, your monthly payment all depends on what type of loan you get. Big down payment or small down payment, will affect interest rate, mortgage insurance, and so on.
Take the 80/10/10 loan for example, that has one big 80% loan, a small 10% loan, and then you put down a 10% down payment. There are a lot of moving pieces to calculate, so it’s best you figure out what type of loan you can get approved for FIRST.
But if you want a ballpark, it's about $600 a month for every $100,000 you borrow. And that includes real estate taxes and insurance. But remember, if you’re buying a condo, don’t forget to add the monthly HOA dues on top of that.
Lastly, the sooner you talk to a lender the better. What if you call a lender in June and they say, “I really wish you didn’t do this stupid thing on your tax return.” You’ll be wishing you could go back in time and have a 10 minute conversation back in January. So do yourself a favor and call him now.