Did you run the numbers for both? With 20% down and 4.75% rate, your monthly payment would be $1669. With 3.5% down FHA @ 5.375% rate and .5% MMIP, your monthly payment would be $2322.
crunching numbers, what i was thinking was i pay $650 more a month, or about $8,000 a year. But with the tax deduction, I’m really only paying say $5,600 a year more. If I put down 16.5% extra on 400,000, (20-3.5%) then I’m out of pocket $66,000. $5,600 a year x 11 plus years gets me my money back (in dollars that of cours emay be worth quite a bit less). What did i miscalculate?
Seems liek I dont’ start getting a benefit until the final 2/3 of my 30 year mortgage.
note: I could be very wrong on my calculations. I often cannot balance my checkbook, but luckily, I’m not on the edge bouncing checks…
