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strangebrew
New member
roll the dice and hope you dont land on boardwalk
Mortgage Scenario.......
- Thread starter strangebrew
- Start date
You want to buy a home for 330K...you have the 20% to put down to avoid PMI and lower your payment. OR....you do a 80/20 loan which require zero down...and no PMI.....your payment goes up abut $450 a month, but you can pay off other debts that total $600-$1000 a month....plus keep 45K of your down payment in the bank?
What do you do?
What do you do?
notoriousQQ
New member
w/ the rates on mortgages, pay off other debt and invest the remaining. my .02
No.....it is still a 30 year note. ABout 5 years on the other debt. But that doesn't stop you from refinancing down the road. PLus that $450 wont be shit in 5 years....you know?
Really just thinking out loud here....I honestly don't know which to go with. I was thinking along the lines of notQQ....but invest in easily liquidated things with not alot of risk in case I lose my job or something like that.
Really just thinking out loud here....I honestly don't know which to go with. I was thinking along the lines of notQQ....but invest in easily liquidated things with not alot of risk in case I lose my job or something like that.
the nature boy
New member
bet on miami.
I`d put the zero down with no PMI. Why would you make payments on the other debts AND keep 45k+ in cash? Just pay off the other debts with the 45k+. They are probably very high interest rates of 12% - 18%.
Or, Once you get the mortgage then get a Home Equity loan for the other debts. They`re as low as 3.5% on 15 years, and tax deductbale.
The goal should be to get rid of the other debt as quickly as possible.
Or, Once you get the mortgage then get a Home Equity loan for the other debts. They`re as low as 3.5% on 15 years, and tax deductbale.
The goal should be to get rid of the other debt as quickly as possible.
FreakMonster
New member
If you have the 20% put it down.
Lumberg
New member
Depending on when you graduated and if or when you consolidated, the school loan may be a very low rate. Mine is 3.25 percent and will go down to 2.25 in about a year. You better believe I am paying that off as slowly as possible! Even companies can't borrow at that rate!
Anyways the car is almost guaranteed to be at a higher rate than the mortgage, though with the 20% part it's close.
It really is a no-brainer. If you have money and you have debt, paying off that debt is effectively the same as investing that money at the interest rate you are paying on the debt.
I see people every day who have credit card debt.
Yet they have CDs or want to "play the market."
Silly since paying down the CC debt is like a guaranteed 18% return on your investment. Unbeatable through any other instrument.
Anyways the car is almost guaranteed to be at a higher rate than the mortgage, though with the 20% part it's close.
It really is a no-brainer. If you have money and you have debt, paying off that debt is effectively the same as investing that money at the interest rate you are paying on the debt.
I see people every day who have credit card debt.
Yet they have CDs or want to "play the market."
Silly since paying down the CC debt is like a guaranteed 18% return on your investment. Unbeatable through any other instrument.
AustinTX
New member
Well, if you can't decide; go with an 80/10/10 note. 
Since you pay a higher interest rate for the 10 or 20 part, I'd just check that against the car/student loans and base it on that.
The other advantage of an 80/20 or 80/10/10 is that it leaves you some money to do sume stuff around the house plus all the crap you have to buy if you haven't owned a home before....
If putting the 20 down, wouldn't leave enough CASH to pay for a fridge and other applicances, fencing if necessary, lawn mower, yard stuff, ..., fixing up or changing some stuff, etc. go with one of the double mortgages for sure. The costs can add up fast, esp. if you or your wife start going nuts on all of the plumbing and lighting fixtures too.
Since you pay a higher interest rate for the 10 or 20 part, I'd just check that against the car/student loans and base it on that.
The other advantage of an 80/20 or 80/10/10 is that it leaves you some money to do sume stuff around the house plus all the crap you have to buy if you haven't owned a home before....
If putting the 20 down, wouldn't leave enough CASH to pay for a fridge and other applicances, fencing if necessary, lawn mower, yard stuff, ..., fixing up or changing some stuff, etc. go with one of the double mortgages for sure. The costs can add up fast, esp. if you or your wife start going nuts on all of the plumbing and lighting fixtures too.
school loans are always low rate..let them ride. Same with the car unless it is like a 10% deal. It;s small amount so you;re niot getting crushed oninterest.
Now is a tough time to buy real estate..prices are going to fall....
Now is a tough time to buy real estate..prices are going to fall....
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