home loans - mortgage refinance second mortage

Liz asked:


We live in NJ and are looking to buy our first place, but we aren’t sure if we’ll have enough money by the time the process is over for the down payment, the closing costs, the safety net AND new hardwood floors, but we feel that’s necessary to move in. We’re planning to get a townhouse that’s well within our budget in the long run and in terms of monthly payments, we just don’t have the cash up front. Can you build an extra amount of cash into a mortgage, and get it upfront for such upgrades? Thanks!
You could be of service by answering the question!

HAL

michael b asked:


Price of home: 159,470
PMI: yes
Interest Rate: 6.5 -> builder offered free point to buy down to 6.375
Estimated Prepaids: 1,584
Estimated Closing Costs: 3,793
Total Costs: 164,847
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Good Faith deposit already put down: 1,500
Lender Credit: 175
Paid by Seller: 1,595 (interest rate point)
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Total Loan Ammount: 159,470
Total Settlement Cost: 2,112
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Payment schedule:
no. of pymnts: 120 Principle & inter & PMI : 1,123.80
no. of pymnts: 35 Principle & inter & PMI: 1,021.47
no. of pymnts: 205 Principle & inter: 994.89
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Notes:

I didn’t have enough down payment (20%) to get out of PMI because i recently spent 15k to get totally out of debt (paid off car, student loan, etc..). I now have 0 debt and plan to pay 400$ a month extra on my mortgage to cut the # of yrs and end pmi sooner.
Oh yeah, with PMI, closing costs, the APR is 7.24%

KELLY