SDC – The loan amount was for 400k at a rate of 5.5% as I would have bought the rate down. That is 2271 on a standard 30 year amortized loan including principal. I was toying with the idea of a 10 year fixed interest only to hold on to more cash. The price of about 650k is more or less correct.
Perry – I agree with your points which is what I was trying to say as well. That every post, every person who inquires about rent verses buy, should maybe provide more of us with reasons behind the request, and as you guys have pointed out, financing plans.
I would say this WITHOUT A DOUBT. DO NOT BUY if you do not have a significant downpayment. With that, I TOTALLY agree but that is simply because you should never ever buy what you cannot afford.
