No. of Recommendations: 5
Hi Brewologist,

The question I'm currently pondering is where to pull the up to 130k downpayment from.
Change your premise;
There is 90% Jumbo financing in MA, no PMI, as follows

740+ scores
10% down, no PMI
5/1 ARM @ 2.8%
30 FRM @ 4.75%

Or, 85% if your credit isn't quite so pristine;
720-739 scores
15% down, no PMI
5/1 ARM @ 2.7%
30 FRM @ 4.6%

Rebalancing your taxable savings & stocks (after setting aside sufficient safety reserves) into your real estate equity would probably be a decent move at present... so roll your 10% down plus non-seller-paid closing costs out of that account into the real estate account.

$65k is 10% down....
$19,500 is 3% assumed closing costs & prepaids.
$84,500 gets you the key on $650,000 home.

On the 5 yr ARM;
$2,403.73 Mortgage payment (plus taxes & insurance.)
On the 30 FRM;
$3,051.64 Mortgage (plus T&I.)

Consider your Roth funds as your safety net until you have re-built non-ROTH liquidity.

Keep your working capital out of your housing to as much degree as possible. If you want to invest in real estate equity, do it on properties that pay you, not the property you consume.

Dave Donhoff
Leverage Planner
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