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  • February 7, 2011 at 2:20 PM #18494
    matt-waiting
    Participant

    I have been struggling with this issue. I can put down enough to get a conforming loan at 4.75%. Or, I can put down 20% and get a non-conforming loan at 5%.

    I plan on being in the home a long time (>15 yrs). I am in the 28% tax bracket. I would estimate that I could get 5-7% returns in the stock market. It would cost me about 5K to buy the non-conforming rate down to 4.75.

    What would you do?

    a) 4.75 with 196K to close

    b) 5% with 126K to close

    c) Buy down the rate to 4.75, need 131K to close

    February 7, 2011 at 2:51 PM #663460
    ljinvestor
    Participant

    B unless you have plenty of savings. Might also consider cost of buying down rate to 4.875 instead of the $5k for 4.75

    February 7, 2011 at 2:51 PM #663522
    ljinvestor
    Participant

    B unless you have plenty of savings. Might also consider cost of buying down rate to 4.875 instead of the $5k for 4.75

    February 7, 2011 at 2:51 PM #664265
    ljinvestor
    Participant

    B unless you have plenty of savings. Might also consider cost of buying down rate to 4.875 instead of the $5k for 4.75

    February 7, 2011 at 2:51 PM #664128
    ljinvestor
    Participant

    B unless you have plenty of savings. Might also consider cost of buying down rate to 4.875 instead of the $5k for 4.75

    February 7, 2011 at 2:51 PM #664604
    ljinvestor
    Participant

    B unless you have plenty of savings. Might also consider cost of buying down rate to 4.875 instead of the $5k for 4.75

    February 7, 2011 at 5:22 PM #663540
    Effective Demand
    Participant

    I personally chose option D on my purchase.

    Took the conforming rate, then took a HELOC out back to 80% and wrote myself a check and put that money in investment. My HELOC rate IS variable.. but its also 3.75% interest rate currently.

    Also I got the i/o only option on the HELOC to help maximize my cash flow options on a monthly basis.

    February 7, 2011 at 5:22 PM #663602
    Effective Demand
    Participant

    I personally chose option D on my purchase.

    Took the conforming rate, then took a HELOC out back to 80% and wrote myself a check and put that money in investment. My HELOC rate IS variable.. but its also 3.75% interest rate currently.

    Also I got the i/o only option on the HELOC to help maximize my cash flow options on a monthly basis.

    February 7, 2011 at 5:22 PM #664345
    Effective Demand
    Participant

    I personally chose option D on my purchase.

    Took the conforming rate, then took a HELOC out back to 80% and wrote myself a check and put that money in investment. My HELOC rate IS variable.. but its also 3.75% interest rate currently.

    Also I got the i/o only option on the HELOC to help maximize my cash flow options on a monthly basis.

    February 7, 2011 at 5:22 PM #664208
    Effective Demand
    Participant

    I personally chose option D on my purchase.

    Took the conforming rate, then took a HELOC out back to 80% and wrote myself a check and put that money in investment. My HELOC rate IS variable.. but its also 3.75% interest rate currently.

    Also I got the i/o only option on the HELOC to help maximize my cash flow options on a monthly basis.

    February 7, 2011 at 5:22 PM #664684
    Effective Demand
    Participant

    I personally chose option D on my purchase.

    Took the conforming rate, then took a HELOC out back to 80% and wrote myself a check and put that money in investment. My HELOC rate IS variable.. but its also 3.75% interest rate currently.

    Also I got the i/o only option on the HELOC to help maximize my cash flow options on a monthly basis.

    February 7, 2011 at 10:56 PM #664450
    (former)FormerSanDiegan
    Participant

    B

    February 7, 2011 at 10:56 PM #664312
    (former)FormerSanDiegan
    Participant

    B

    February 7, 2011 at 10:56 PM #664789
    (former)FormerSanDiegan
    Participant

    B

    February 7, 2011 at 10:56 PM #663706
    (former)FormerSanDiegan
    Participant

    B

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