Facebook Twitter

WHAT IT REALLY COSTS TO BUY PARADE’S MILLION-DOLLAR HOUSE

SHARE WHAT IT REALLY COSTS TO BUY PARADE’S MILLION-DOLLAR HOUSE

One home in the 1996 Northern Wasatch Home Builders Association Parade of Homes, No. 16, "Chesapeake," at 665 E. Windsor Lane in West Kaysville, is priced at about $1 million.

What would it take to get into this mansion? Costs would vary according to interest rates, down payment and other factors, but according to a theoretical estimate obtained from Yvette Herrera of Western Fidelity Mortgage Co., with 10 percent down - $100,000 - here are the costs of buying a $1 million home:Down payment: $100,000

Closing costs: $7,324.

Prepaid items: $9,213.

Total initial investment: $116,137.

Monthly payment for 30-year loan: $7,182 for a 6.375 variable interest rate or $8,329 for an 8.25 percent fixed rate.

The monthly payment includes $247.50 for hazard insurance ($2,970 a year); $570 a month in private mortgage insurance ($6,840 a year); and $750 a month in property taxes ($9,000 a year).

If the buyers put up 20 percent ($200,000 or more) as a down payment, they could waive the $570 a month in private mortgage insurance, bringing monthly payments down to as low as $6,612 with a variable interest rate. They could also then elect to pay taxes and insurance on their own.