San Diego Housing Market News and Analysis
What would you do? 4.75 with 196K to close OR 5.00 with 126K to close
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Submitted by matt-waiting on February 7, 2011 - 3:20pm
I have been struggling with this issue. I can put down enough to get a conforming loan at 4.75%. Or, I can put down 20% and get a non-conforming loan at 5%.
I plan on being in the home a long time (>15 yrs). I am in the 28% tax bracket. I would estimate that I could get 5-7% returns in the stock market. It would cost me about 5K to buy the non-conforming rate down to 4.75.
What would you do?
a) 4.75 with 196K to close
b) 5% with 126K to close
c) Buy down the rate to 4.75, need 131K to close
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