Compare Loan product for Primary Home
I am a small real estate investor now looking for primary residence. I have 2 loan product options wondering which one is better. Please advice.
| Parameters | Product 1 30 year - 5 year ARM NO PMI | Product 2 30 year FIXED Lender Paid PMI | Difference | |
| Purchase Price | $400,000 | $400,000 | ||
| Down Pymt % | 10% | 5% | 5% | |
| Down Pymt $ | $40,000 | $20,000 | $20,000 | |
| Loan Amount | $360,000.00 | $380,000.00 | $(20,000.00) | I can probably make $200/month using this $20000 to offset additional monthly payment if I choose Product 2. Am I thinking correct. |
| Annual Interest Rate | 0.0425 | 0.04625 | -0.00375 | |
| Loan Period in Years | 30 | 30 | 0 | |
| Scheduled payment | $1,770.98 | $1,953.73 | -$182.75 | |
| No of Payments | 360 | 360 | 0 | |
| Total Interest | $277,554.10 | $323,342.86 | -$45,788.76 | |
| Total Payments By the End of Term | $637,554.10 | $703,342.86 | -$65,788.76 |