|
|
| *Loan,banking and credit>>>mortgage loan |
Buying home 189k,put 10k down should I take a loan to get 20% dwn or pay the mortgage ins? monthly payments? |
We are approved for a 189 home with 10k down and an interest rate of 6.7 with no points 30 year fixed. I have been hearing about people getting a loan for the 20% down to get 100% financing. my plans are to own the home for a year and sell it after doing minor upgrades and hopefully turning a 10k dollar profit. I am unsure what motgage insurance costs and if it would balance out to the interest on the 20% loan or what. any recommendations? Take the PMI- it is tax deductable anywyas and as your plans are to sell it in about a year it will be well worth it. The PMI will be around $100 a month. If you took a 2nd mortgage your payment would be a little lower combined with the 1st mortgage- about $40 a month- but the tax benefit from the PMI will out weight it in the short term. Source(s): 10+ yrs in mortgages You need to know what the mtg insurance costs to make an informed decision. If you are flipping it in one year, I'd think the mtg insurance would make the most sense The mortgage insurance should be between $70-80 per month for that sized loan. It makes the most sense if you are planning to flip. However - be very cautious right now. Be sure to check out the market in your area first. I have heard of several flippers who have actually had to take a loss this last year. You have to do the math. Call up an insurance company and find out what you'll pay for a year. Compare that to how much a loan will cost. There are types of loans that you can get now that don't have a lot of up front costs. Just be sure that you can pay it off, and that you're not cutting it so close that if it takes 3 years to sell you won't be bankrupt. You need to do some footwork and look up loans, consider how much risk you're willing to take, what PMI costs and all that and then it should be a simple comparison of choices. Do some more work....get to know your local real estate market. A year from how is too hard to judge.... No! Don't get another loan for the 20% down...if you can try to get as much down payment as you possibly could. Best thing to do is to put 20% down payment so you don't have to pay the PMI because that's not tax deductible. But if you could only put the 10% down & pay the PMI then go for that. Where do you live anyway? I would kill to buy a home for that price; here in DC is outragous!~ GOOD LUCK! |
| Tags |
| mortgage insurance motorcycle insurance scooter insurance accident insurance mortgage loan consolidation loan commercial loan auto loan fha loan payday loan |
SiteMap--Copyright/IP Policy--Contact Webmaster--Resource of HR For personal non-commercial use only. |