I am planning to buy a condo in Chicago, IL - USA
- Let's say that I am buying a condo worth 250,000 and is FHA approved.
- Let's say that I have 70k in my account.
- When I pay 20% down, and after closing costs and tax for that year ( say 5k ), let's say I will have paid 50 + 10 = 60k
- Now, I will have been left with 10k in savings.
- Let's say that my Credit score is between 750 - 770.
- Since I have 10k in my account after down-payment, will I get a good interest rate on the loan?
- I was planning to put down 15%, but I have been told that I should buy something called PMI to satisfy the rest 5% and if I take that my interest will be more and sometimes, bank will not go for anybody who pays less than 20%. Is that true?
- After downpayment + closing costs, how much money in the savings accounts, is the bank looking for to say that I am a good buyer?