Hi, I am looking to buy a home and have a couple of mortgage options 10% down at 2.87 or 20% down 2.62%, 7/1. Difference in downpayment is nearly 100k. If I decide on 10% down, is it reasonable to expect 6-8% returns on 100k investment over 7-10 years to cover for differences in closing cost and interest? If yes, what would be a good way to invest this money to cover for volatility? Currently, I have the money in liquid form as I was looking to invest in a home.
Who gives you that rate for an over 800k loan?
Best of luck ✌🏿
Check if the 10% down requires PMI (private mortgage insurance). While the rate might be decent, PMI can push that way up until you pay down 20%.
Do 20% down - otherwise you will be throwing away loads of money on PMI (unless home value is with 10% more then you are buying it for, since PMI happen when loan is more then 80% LTV.
No PMI
Interesting, how is is possible to get that rate at 10% LTV and no PMI? What lender is this? Maybe I need to refi, lol.
Do it twice, one for 10% for your home and another loan at 10% down for investment property.. rent it out.. you’re at least making 4% and maybe more in Bay Area
Are the rates so low now? Which bank? For the difference, I would say go for 10% (if without pmi) and invest 5% in stock and keep 5% in hand as the recession comes.
OP is doing a 10 year 15 year or ARM
Can’t believe this much low interest rate at this point in US real estate market ? How is that possible with < 20% down . The average is close to 3.5-3.75% minimim , nothing less than that even if you give more than 20% down payment
I couldn’t help but laugh when you said you have money in liquid form. As much as I had a good laugh, it threw me into an introspection as to what money really is. To me it’s an abstract construct. Wonder what money means to others here.
Although I don’t get what Samsung is saying, I had a good laugh when started curved screen TVs . Wonder what that means to others here.
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Good luck