Question for you financial big wigs out there :)

[rmurray]

1)PMI is involved...Closing costs are involved..some of with are a percentage of the amount financed...

If you want a shorter term..you will get at least 1/4% rate discount for 15 year term..

I am afraid your friend is wrong and this would cost you more not less...You still can benefit from the shorter term by just asking for it..

[Dan F]

There is another way to look at this also. I have been advised by my financial advisor to put as little down as possible. The reason being, you are investing with someone elses money. You will make a return and not have to front any of your own money.Take your $15,000 and put it into something else. Now remeber this is looking at your purchase as an investment. If you plan to stay forever then what Rmurray says is the best idea. It depends on what your in it for.

[rmurray]

There is some wisdom to this...Right now with rates at about 6%....deductable...All the market has to do is a 4% increase per year to make a real profit...This works if the buyer has the ability to invest...not spend the left over money as most of us would..

Also..on a 30 year mortgage each thousand only effects the payment by $5.75/mo....It would not be real smart to put down your last thousand just for this little difference in payment...Of course...you have to keep the extra money for the rainey day...not spend it as most would...

[Melissa]

Is it better to put a large down payment on a home/land loan....Lets say $15,000....to get a better monthly payment. Or to put the minimum down on the loan and at the first payment send them a whopping $10,000 to $15,000 house payment towards the principal? Or does it even out either way?? A friend of ours broached this subject with us thinking we would be better off putting the minimum down and making the large payment thus shortening our loan by several years than by making the larger down payment to lower our house payment. Of course there is PMI to think of as well. This kind of stuff just makes me head swim Any ideas out there???

Melissa )