Posted on: 14th Feb, 2010 01:00 pm
We put an offer in on a short sale. The bank got back to us and said they will accept our offer of $225,000 but will not accept our request of 3% cash for closing costs unless we go with an FHA loan. The APR is higher for FHA (5.624 vs 5.205%). We will be paying 20% down either way.
If we plan on staying in the house for about 10 years, which option will be better on a 30 year fixed loan:
1) conventional 20% down without 3% closing costs or
2) FHA 20% down with 3% closing costs (=$6750)
I know with FHA we will need to pay PMI for 5 years no matter what our LTV.
Thanks!
If we plan on staying in the house for about 10 years, which option will be better on a 30 year fixed loan:
1) conventional 20% down without 3% closing costs or
2) FHA 20% down with 3% closing costs (=$6750)
I know with FHA we will need to pay PMI for 5 years no matter what our LTV.
Thanks!
Stay away from the PMI if you can help it - erodes any savings you might otherwise gain.