Business credit v FHA for downpayment cost?

[Ariel Darby]

What's worse business credit minimum payments or PMI /MPI payments? Is that the same thing MPI and PMI lol? Might be a dumbass question?

[Brent Coombs]

@Brandon Raeburn, on my calculations, unless you can get business credit at 5% interest or less (yeah, right!), it WILL cost you more per month than just paying the extra 0.85% PMI/MPI per year on the whole loan balance.

Using an example purchase price of $100,000, my thumbnail calculation went like this:-  

Borrowing the extra 16.5% deposit at 5% interest = extra payments of $825 per year. 

Or, paying the extra 0.85% PMI/MPI on $96,500 loan = extra payments of $820.25 per year.

So, when you factor in your ACTUAL business credit interest rate... (I needn't finish that sentence, right?)

Of course, your BIGGEST savings will be if: you only buy BARGAINS! Welcome to BP. All the best...