15 or 20% down
Hey all,
My partners and I are working through our first offer currently and two options we have through a conventional mortage are 15% or 20% down.
I realize that the decision will most likely be a subjective one, but I would like to get some opinions on which option you would choose and the reasoning behind it.
15% down ($9,750) 4.625%, pmi = $13/month, $297/month mort+ins, $300 cash flow/month
20% down ($3,000) 4.75%, $271/month mortgage. $275 cash flow/month
My thinking;
We would most likely not pick up another property for upwards of a year or more. In one year with the 15% we would save about $2,950 in cash. Our limiting factor for traditional financing is cash on hand for downpayment. We are generally looking for properties in the 60-100k range. The question I keep asking myself is will that slowly decaying $3k in cash saved jumpstart our next properties fast enough to outweigh the slightly higher cost longterm.
Thanks in advance!
Mike