Mortgage option question
Thread DetailsLast Edited by 08CivicSi May 29, 2016 at 08:25 PM
1. Down payment assistance of 3% ($5130) with rate of 4.5% - repayment requirement drops by 20% per year after i've been there for 10 years, completely forgiven at 15 years in the house - which i will meet, don't foresee needing/wanting to move.
2. No down payment assistance, i supply 3% of my own funds for the down payment. Rate would be 4%
House was $171k. Which was the better option? I could only supply 3% max down payment if i needed to, but i didn't want to use my savings and this is through a state housing finance program.
Both options will require PMI of ~$125/month
I bought last year and chose option 1...did i make the right choice for the long run? i'm planning on making extra payments and improvements to the home to raise the LTV and hopefully can cut the PMI in the next few years.