Step 1. Multiply the "Sales Price" by 97%. |
|
$115,000 x .97 = $111,550 |
Step 2. Multiply $111,550 by 1%. |
|
$111,550 x .01 = $1,115.50 |
| (This is a preliminary "loan origination fee" amount) |
Step
3. Add the $1,115.50 to the "borrower
paid" closing costs listed below. |
|
(Title company fees vary, but
these are typical ...) |
|
| Loan
Origination Fee |
|
$ |
1,115.50 |
| Credit
Report (each) |
|
$ |
50.00 |
| Flood
Certification |
|
$ |
29.00 |
| Escrow
Fee |
|
$ |
165.00 |
| Alta
Title Insurance |
|
$ |
143.00 |
| Recording
Fee |
|
$ |
25.00 |
------------------- |
total = |
|
$ |
1,527.50 |
|
Step 4. Add
$1,527.50 to the "sales price". |
|
$115,000 + $1,527.50 = $116,527.50 |
Step 5. Multiply $116,527.50 by 95%. |
|
$116,527.50 x .95 = $110,701.13 |
Step 6. Add $500 to $110,701.13. |
|
$110,701.13 + $500
= $111,201.13 |
|
(This
figure is the "base loan amount"). |
Step 7. Multiply $111,201.13
by 1%. |
|
$111,201.13 x .01 = $1,112.02 |
| (This
figure represents the "corrected" loan origination fee) |
Step 8. Multiply the answer
in "Step 6" ($111,201.13) by 1.50%. |
|
$111,201.13 x .0150 = $1,668.02 |
| (This
figure is the "up-front mortgage insurance premium" (mip). |
| (Click here --» |
|
|
|
to read more about calculating
"mip") |
Step 9. Add the answer in
"Step 6" to the answer in "Step 8". |
|
$111,201.13 +
$1,668.02 = $112,869.15 |
|
|
$112,869.15 is the "Maximum FHA Loan" on a $115,000 home |
|
|
Optional: Subtract the "base loan amount" (Step 6) from the "sales
price". |
|
$115,000 -
$111,201.13 = $3,798.87 |
|
This would be the "minimum cash, down payment"
required. |
| Note: "Principal and Interest" is
computed on the total loan. |
|
