No. of Recommendations: 1
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.

Dave Donhoff
Leverage Planner
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.