Calculating Your Mortgage In Mexico
Video Transcript - (Speaker: Alex Koper III, CEO)
Hi, I'm Alex Koper from MoXi. Really excited to talk to you today and give you a quick demo and run-through of MoXi's new payment and cash-to-close estimator available on our website. As far as we know, it's the first of its kind as far as being able to see what a mortgage payment would look like as a foreigner purchasing or refinancing property in Mexico, which is really exciting. And there are two elements to this calculator. Let's dive right in. So we are here on the page. You can access this calculator from MoXi's website, www.moxi.global. And here we are at the purchase price section.
So what we can enter here is a particular purchase price, perhaps, of a home that you're looking at purchasing. So for purposes of this example, let's use an estimate of $500,000. There's some cool tool tips you can hover over that give you some suggestions and also give you some information about MoXi products and programs.
So for example, MoXi loans are all in US dollars, so you wouldn't want to enter your purchase price in Mexican pesos. When you enter this figure in, it's going to start pre-filling some information. It'll tell you the minimum amount of down payment that MoXi would require. You're certainly welcome to increase this amount a little bit higher if you like. So we'll put in 200,000 here. It's going to default to an interest rate. You can always check out available interest rates from MoXi products and programs on our pricing page, but we'll leave it at the default for now. It'll default to a 25-year term length. If you want to change that, MoXi offers term lengths between 15 and 30 years. You're welcome to do that, but for now, we'll leave it at 25.
And then we're going to default some of the required items that may look a little different to you. If you've not purchased or refinanced property in Mexico before, you'll see hazard insurance, which is defaulted in here for you. You're welcome to change it. And MoXi allows you to purchase insurance from your own insurance company or insurance broker. We just provide an estimate for you in here for example purposes. The loan amount will automatically pre-fill, and then it will start to calculate your principal and interest payment. You'll also notice that we've estimated property taxes for you here as well. We're just using an estimate, but what you might find is that these are a lot lower than what you might expect in the United States, which is hopefully a welcome surprise.
Fideicomiso is a required trust holding entity for foreigners that are purchasing property in a restricted zone. And for MoXi loans, all properties, all customers use a fideicomiso de garantía in order to hold the property. So we're going to estimate the monthly payment due to the fiduciary on your fideicomiso for you here. In this case, about $50 a month. Monthly sub-servicing fee, and again, the tool tips when you hover over, give you great information at a glance about what that is. As we scroll down here, you'll see the next section. Over to the right, you'll notice how the monthly payment of $2,919 in this estimate example is broken out by principal and interest payments, insurance, fideicomiso, sub-servicing fee taxes, and so forth.
But what is also cool on this page is that we will estimate your amount of cash to close. So what you may or may not know is that purchasing property in Mexico is a much more cash-intensive thing than maybe you're accustomed to in the United States. There are transfer taxes due to the government. For example, notario fees and various other fees, costs, and charges due at legal property transfer that are typically much higher than in the United States.
You recoup some of that or get some of those benefits on the long-term. As you notice, we covered already just the lower property tax rate, for example. But upfront, you should expect to pay a pretty high amount of the purchase price in closing costs, especially if you're doing it the right way. And so we're going to estimate the total amount of cash that you would be required to have to actually close the transaction in this scenario. So you're putting $175,000 down payment between transfer taxes, fideicomiso set-up fees, notario fees, and all of your loan costs, you should expect to have in cash ready to close about $210,000. This number obviously changes with the more or less down payment that you enter in this field, but it gives you a high-level sense.
Below in the calculator are also some great, really helpful links and also disclosures. But these links will take you to information about MoXi pricing for loans as well as our fee disclosure document that talks about in detail a lot of those fees, costs, and charges due on foreigner purchases of Mexico property. So really important to read through these really, really helpful links here. And then at the bottom of this page, you'll see our e-brochure that talks a little bit more about MoXi products and programs. You can click through this or download it.
And then if you are ready to have a conversation with one of our mortgage advisors, you can fill in the box here on the left, your name, your email address, phone number, and maybe some basic information about the property you are considering and/or the transaction you're considering, whether that's refinance or purchase. And then we will be in touch. So hopefully, this is a helpful tool for you. We continue to make adjustments and changes to it to make it even more accurate and even more helpful to you.
As always, reach out to us with any feedback, comments, or questions, and we look forward to working with you.