[quote=scaredycat]how is the 10 year number wrong? what does that mean?[/quote]
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. If you walk and let the bank foreclose, doesn’t your credit get screwed up for 7 years? Wouldn’t that mean you can’t buy another house for 7 years unless you’re paying very high rates for it? Are you betting then that if price fall another 4% (at which point, you’ll walk) that it’ll continue to fall for the next 7 years? Wouldn’t that be loss opportunity if price crashed in 3-5 years and starts to rebound 5 years from now? Rent and keep your 20% down is still the best case scenario. Nothing like keeping your money liquid and your credit pristine, getting ready for a great opportunity.
