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Personal Finances / Buying or Selling a Home


Subject:  Re: question: down payment on my first home Date:  5/14/2013  1:23 PM
Author:  JAFO31 Number:  125278 of 128887

floridaInvestor1: "I am about to purchase my first house. It is a nice, well-located property in Miami, FL. The property costs about 240K, and with a 3.75 APR and 10% down, my monthly payment is about $1,750. On the other hand, I could put 20% down, get rid of PMI and reduce my monthly payment to $1,540. The property can be rented anywhere from $1,700 to $1,950+ a month. First I want to rent it and maybe move in there in a few years down the road."

If you plan "maybe to move in there a few years down the road," you are buying an investment property, not a personal residence, and I seriously doubt that the financing you discuss is available for anything other than owner-occupied 1-4 family homes.

I suspect that you will need more like 25-30% down and that the interest rate for an investment property will be higher.

Regards, JAFO
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