[quote=JordanT]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?
Except if the house stays flat or appreciates, you get that 20% down payment back. It’s only a sunk cost if the price of the house goes down. The only way these numbers work in your favor is if the price of the house goes down where you’d have to walk away from your initial down payment in the 5-8 year time frame.[/quote]
Exactly, you don’t lose your down payment if the price doesn’t fall, and my calculation shows that. If you expect 20% decline in 8 years, then it’s cheaper to go w/ FHA, if you expect price to stay flat or increase in 8 years, it’s cheaper to go conventional. I think scaredycat is thinking that regardless of what happen to price, the down payment is gone? Is that true scaredycat? You might want to run your numbers with a little more details than just comparing monthly payment.
Also, scaredycat, what make you think gold will double in the next 8 years? Are you expecting inflation to go crazy?
