My first adult flip - Its all numbers game

[Aaron Foster]

I've had a few people ask me about mortgage and financial perticulars; I am by no means an expert but this may help a few of you. i wish someone would have explained it to me starting off. I'm settling on a house tomorrow and running some of the #'s. I purchased the house in January 14' for $89,000 and put down 20% ($17,800) and paid about 5% for closing (Around $3,600).The total loan amount was $71,200. For investment sake, the closing is a loss.

I've spent $3,572.72 on the mortgage alone (this does not including all of the upgrades). $328.84 went towards the principal. The other $3,243.88 went towards taxes and interest. The payoff amount with all of the fees and recording costs and interest is $71,206.39 (even after paying $3,572.72 in mortgage I still owe $6.39 over the original loan amount.)

The couple who purchased the house was approved for a 100% loan from USDA who will only mortgage rural housing. I think it must be zoned R-R (rural residential) I covered the cost of their closing and they had no out of pocket expenses. (not sure if they have to pay mortgage insurance)

A great website to understand how much you pay over the life of a loan is www.mlcalc.com (figure out how much you actually pay for a house)

Hope this helps some of ya...