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Great question that actually has a fairly easy answer. As of last Friday, and FHA loan (assuming you have decent credit) would run you about 4.25%, with no discount points. On that purchase price, that would give you a principal/interest payment of about $797. If you are willing to pay a slightly higher rate of 4.75%, your lender can give you a "lender credit" for the entire $4k in closing costs/prepaids, leaving you with simply bringing the downpayment to closing. Your P/I payment would increase to about $845, but you would save the $4k upfront.If you would like more details, feel free to send me a message.
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