when is a mortgage too expensive?

[Nnena O.]

I paid cash for a duplex in Pittsburgh, then applied for a mortgage under the delayed financing exception that I learned about here on BP. I am trying to figure out if it is even worth it to go through with the mortgage.

Here are the numbers I received from the bank and I am wondering if this mortgage is too expensive for the size of it.

Appraised Value: $60,000

Mortgage of $42,000 (LTV=70%)

30 Yr. Fixed Conforming

5.00% with -.125 pts.

Closing costs are approximately $3,140

Thanks for your thoughts.