All Forum Posts by: Julia Tabscott

Matt - I think the metroDPA loan would make more sense for the acquisition since it would reduce your initial out of pocket expense and keep more money in the bank.  Yes, it comes with a higher interest rate and payment, but keep in mind that you don't need to keep that interest rate forever.  There may be an opportunity to refinance later on down the road to get your interest rate and payment down, especially if rates stay level or improve.  The metroDPA loan program does have that silent 2nd that forgives at 1/36th each month (completely forgiven after 3 years), so you would need to keep this in mind when it comes time to refinance later on down the road.  If your mortgage is covered by renters for the initial acquisition, then I don't think you should worry too much about the rate and payment, at least not yet, since you're getting started and taking action.  Passive equity gains/income or a reduced housing expense is still a win in my book.  If you delay your home purchase another year or two to build up additional cash savings for the down payment, your increased down payment could easily be offset by an increase in home prices a year or two later, which would be exaggerated even more if rates also increase in conjunction with home prices.  The opportunity cost of waiting to buy can be very expensive.