Lending Option Advice

Tips and Deals Forums Home Mortgage Lending Option Advice

This topic contains 0 replies, has 1 voice, and was last updated by  Anonymous 7 years, 2 months ago.

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    Anonymous

    We made an offer this weekend, and after some initial negotiating, received a “probable acceptance” from the seller’s agent (it was well after hours). I’m now mulling over some of the lending options I have to chose from, and would appreciate any advice. I think I have narrowed it down to 3 (all conventional):
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    Option 1:
    – No points
    – No closing costs
    – 30 year fixed
    – rate 4.375%
    – Estimated monthly P & I: $1802
    – Initial equity if earmarked closing costs rolled into downpayment: 15%
    *
    Option 2:
    – No points
    – Closing costs
    – 30 year fixed
    – rate 4.0%
    – Estimated monthly P & I: $1807
    – Initial equity 12.25%
    *
    Option 3:
    – 2 points
    – Closing costs
    – 30 year fixed
    – Rate 3.75%
    – Estimated monthly P & I: $1762
    – Initial equity 10.5%
    *
    I think I’ve tossed out #2, but am struggling to decide between #1 and #3. The 4.375% for option #1 is jarring, and Initially I was striving to minimize my monthly payment, but saving $40 a month seems stupid to pass up almost 5% of initial equity, so #3 seems best.
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    Any opinions? Thanks…

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