I would really like some advice on this. I have to make a choice on what type of loan to take. I can do a 100% financed loan with no PMI with a 4.5% interest rate or I can choose a conventional with 5% down at 3.75 % interest rate and pay PMI. Both loans are for 30 yrs. Which one would you do if it were you?
I would really like some advice on this. I have to make a choice on what type of loan to take. I can do a 100% financed loan with no PMI with a 4.5% interest rate or I can choose a conventional with 5% down at 3.75 % interest rate and pay PMI. Both loans are for 30 yrs. Which one would you do if it were you?
TIA,
Deree
I would do the math and see which one is a better deal. Plug in the numbres in an online mortgage calculator and see in which scenario you end up paying less. Most likely it'll be the one with 3.75% interest but it depends on the loan amount and also how long you'll be staying in the house.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014
