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Buying condo versus single family

Want to know if it's more or less expensive to take out a mortgage on a 2 bedroom/ 1 bath condo or 2 bed/1 bath singel family home. Want my monthly payment to bes low as posisble of course but even though I'm finding cheaper condos, I've been told they come with other costs?
By wilsonacres7873399 from WI Sep 15th 2014
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You will be fine looking at a condo and costs should be the same. The biggest thing is what loan type would you utilize - that could affect the costs slightly. Call me any time and we can discuss! WI Office: 715-656-4500

Sep 15th 2014

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In terms of a mortgage loan, condo properties are slightly higher risk, so your interest rate might be .125% higher than a single family house. Underwriting on anything with an association is more complicated than a single family house, as lenders need to check out the association too. Lending in WI, MN, and SD - www.WI-MortgageBroker.com

Sep 15th 2014

You will want to consider if the condos include a monthly Homeowners Association Due. Many of them do and this could increase your monthly housing costs.

Sep 15th 2014

A condominium may be slightly more expensive depending on your down payment. If you have less than 25% down payment you will either pay higher closing costs or a slightly higher rate than the single family home. The condo association will also need its own approval. The lender will be looking to see if all the condos in the association are completed and sold. Yvette Jenkins - Johnson Bank - NMLS 455918 - yjenkins@johnsonbank.com

Sep 15th 2014

Another factor to consider is that you will have monthly HOA (Homeowners Association) dues that come with Condo associations. Although your Master Insurance policy is paid through this, on average this will raise your monthly payment overall when compared to a similar Single Family home at the same purchase price. Closing costs in general will be about the same. The biggest factor is depending on how much you put down on the home, there could be an interest rate pricing "hit" that could be between .125%-.25% higher in an interest rate. And of course the interest rate is what sets your P&I (Principal & Interest) payment. So for the same purchase price on a Single Family VS. a Condo, you likely will pay slightly more on the Condo in rate and payments. On the positive side though, Condo's generally are priced cheaper overall for what you get. So the lower purchase price may off-set these other aspects. Hope this helps answer your question! Should you wish to discuss further, please call me or Joe Becker above at the number he posted earlier. You can also call us toll free @ 866-680-2840 or email me at dyoungs@progressivels.com Thanks!

Sep 15th 2014

You have to consider HOA fees and your rate maybe slightly higher on a condo as oppose to a single family home.

Sep 15th 2014

Typically a Condo is more expensive as far as monthly payment goes because the association dues can be pretty expensive. However, the property taxes are much less than a single family home so that offsets some of the difference. You would want to check with the association, as many times the dues includes other fees such as heat or trash, etc.. Feel free to call with questions 651-762-3572

Sep 15th 2014

All condominium projects come with a monthly association fee.. Each area is different, but it could be anywhere from $100 to $500 per month.. Also, lenders will normally charge a higher rate when it comes to condo's since they pose a greater risk for the lender. A $100K condo will cost you more monthly than a $100K SFH in most instances, and for the majority of the county, a SFH will appreciate more than a condo.. so in general, you pay more, but don't get to experience the same appreciation a SFH would offer.. Folks typically go with a condo so they have less maintenance to deal with, not because they are a better investment or cheaper.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Sep 15th 2014

These are all good answers. My experience also says a Condo is more difficult and possibly more expensive.I am in Green Bay if you want to stop by or call my office to discuss.

Sep 18th 2014


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