Thanks Gruss, I printed this out and will bring it to tonights meeting with the mortgage co.
One of the issues I had was even though my ratings are all over 650, when they tried the 80/20 the 20 part failed because of a late payment. With closing cost I can probably only out down 5% I'll see what they come up with. -sm Gruss Gott wrote: A thought on ARMs (in general): ARM rates are fairly high now relative to fixed-rate loans. Even if fixed rates are at 6% today (and you can probably get a better deal than that), you'll be saving only 1.2% * (1 - your marginal tax rate) on the loan for the next 5 years, so maybe 0.72% (assuming 40% marginal rate) after-tax. A thought on your situation: Refinancing costs will wipe out the savings if you're talking about a short timeframe (you mentioned 2 years). How much can you put down? If 10%, you can do an 80/10/10 (AKA piggyback loan) - put down 10%, take out a fixed-rate conventional for 80%, and take out a 10% home equity loan (drawn against the 10% in equity from your down payment). There may be options for putting down even less than that and still doing the piggyback setup. The key point is: Do what you can to get out of PMI. Talk to lenders about loan options - there are so many innovative loan products now, there's likely to be one that fits your situation. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Purchase Flash MX Pro from House of Fusion, a Macromedia Authorized Affiliate and support the CF community. http://www.houseoffusion.com/banners/view.cfm?bannerid=57 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143888 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
