Mortgage Comparison

[Frank S.]

Hi BPs!, 

Can you please review this provide some feedback, please? I refreshed my pre-approval to lock the rates. Here is what my lender provided.

Location: Chicago, IL

Loan 415K

If you put the 20% down, I give you two options –one at 4.00% and at 4.125% to show you the difference in closing cost which is over $2526. The difference in monthly payment is $24.02 which means it will take you 8 years and 7 months to recoup the difference in cost should you go with the lower rate."

I could invest the 2K lower rate only requires 4.1% return to hit the $8K.

415K loan

20% > $83,0000

15%> $62,250

PMI Cost for 39 months > $2,613

@ 4.0

Over 360 months cost $238,606 in interest.

@ 4.125

Over 360 months cost $247,252 in interest.

-8,646

@ 15% @ 4.0%

Over 360 months cost $262,707 in interest.

-24,101

What are typical escrow costs?

Thanks!!

F