The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/hi-anthromn-id-strongly-encourage-you-to-take-31330413.aspx

Subject:  Re: Getting the financials ready... Date:  7/17/2014  12:38 AM
Author:  Dwdonhoff Number:  127254 of 127815

Hi Anthromn,

I'd strongly encourage you to take 95-97% financing (3-5% down,) rather than raiding your growth accounts. You'll benefit from the compounding growth left at work far more than you'll incur expense on the higher loan-to-value mortgage and insurance.

I just got a fellow Bostonian of yours into a $530k condo, at 80% 5 yr ARM @ 2.625, and a 15% HELOC at 2.99% Can't guarantee you'd qualify for terms that sweet, but even if you took a fat & heavy FHA loan with mortgage insurance, you're better off holding back your cash.

Luck!
Dave Donhoff
Leverage Planner
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us