Posted on: 04th Jun, 2010 08:16 pm
5/5 ARM with option to 0% down or take 15 fixed with 20% down.
Loans by same lender.
In both cases No points and credit getting same rate of 4.81 with waived origination fee.
I do have the down payment, but wondering if option two is better, planning to live there at least 5 years. Will have to sell when moving -- unless can rent at rent-cost high enough to meet mortgage.
PS: I am using the buy/rentx12 ratio and for the property that is 11.8. But having cold feet... any advice is appreicated.
Loans by same lender.
In both cases No points and credit getting same rate of 4.81 with waived origination fee.
I do have the down payment, but wondering if option two is better, planning to live there at least 5 years. Will have to sell when moving -- unless can rent at rent-cost high enough to meet mortgage.
PS: I am using the buy/rentx12 ratio and for the property that is 11.8. But having cold feet... any advice is appreicated.
Hi Guest,
In my opinion, 15 year fixed with a 20% down is a good option. This is because your loan term will remain fixed throughout the time period. The rates will not fluctuate with the increase or decrease in the mortgage interest rates. As you've the down payment, I would suggest you to opt for the second option.
Thanks
In my opinion, 15 year fixed with a 20% down is a good option. This is because your loan term will remain fixed throughout the time period. The rates will not fluctuate with the increase or decrease in the mortgage interest rates. As you've the down payment, I would suggest you to opt for the second option.
Thanks
The property is nonwarrantable and they can not give me the conventional 15 yr.
My option for 5/5 ARM stands.
Should I put any money down or keep in savings.
I think down because in my savings I am earning only 2% at most and the mortgage rate of borrowing is higher at 4.81%
Is this the correct way of thinking?
Thank you again Jameshogg for your time and input.
My option for 5/5 ARM stands.
Should I put any money down or keep in savings.
I think down because in my savings I am earning only 2% at most and the mortgage rate of borrowing is higher at 4.81%
Is this the correct way of thinking?
Thank you again Jameshogg for your time and input.
Hi Guest,
You will have to give a down payment of 20% if you are applying for a conventional loan. These days, lenders have stopped giving loans with no down. If you are unable to give the down payment, the lender will want you to go for a private mortgage insurance.
Thanks,
Jerry
You will have to give a down payment of 20% if you are applying for a conventional loan. These days, lenders have stopped giving loans with no down. If you are unable to give the down payment, the lender will want you to go for a private mortgage insurance.
Thanks,
Jerry
What I mean is I already have the option to put 0% down.
But want to put 30% down...is there a wrong idea to put money down? People are telling me not to empty my piggy bank for a down payment since lender is willing to finance with 0% down. But I don't see the point in paying to borrow money that I already have (and saving on intrest). Thank you and sorry for the vague above post.
To clarify: I have already qualified for a 0% down but WANT To put money down anyways - just making sure I am thinking the "right way" and not missing out on some benefit. Thanks again.
But want to put 30% down...is there a wrong idea to put money down? People are telling me not to empty my piggy bank for a down payment since lender is willing to finance with 0% down. But I don't see the point in paying to borrow money that I already have (and saving on intrest). Thank you and sorry for the vague above post.
To clarify: I have already qualified for a 0% down but WANT To put money down anyways - just making sure I am thinking the "right way" and not missing out on some benefit. Thanks again.
Hi Guest!
Welcome to forums!
In my opinion, it is better to put a down payment of 20%. As Jerry has rightly stated in his post, if you go for 0% down, you would be liable for the private mortgage insurance.
Sussane
Welcome to forums!
In my opinion, it is better to put a down payment of 20%. As Jerry has rightly stated in his post, if you go for 0% down, you would be liable for the private mortgage insurance.
Sussane
I did it -- I put 20% down. Thank you all for your advice and help so much!