Buying home 189k,put 10k down should I take a loan to get 20% dwn or pay the mortgage ins? monthly payments?

We are approved for a 189 home with 10k down and an interest rate of 6.7 with no points 30 year fixed. I have been hearing about people getting a loan for the 20% down to get 100% financing. my plans are to own the home for a year and sell it after doing minor upgrades and hopefully turning a 10k dollar profit. I am unsure what motgage insurance costs and if it would balance out to the interest on the 20% loan or what. any recommendations?Buying home 189k,put 10k down should I take a loan to get 20% dwn or pay the mortgage ins? monthly payments?
Take the PMI- it is tax deductable anywyas and as your plans are to sell it in about a year it will be well worth it. The PMI will be around $100 a month. If you took a 2nd mortgage your payment would be a little lower combined with the 1st mortgage- about $40 a month- but the tax benefit from the PMI will out weight it in the short term.Buying home 189k,put 10k down should I take a loan to get 20% dwn or pay the mortgage ins? monthly payments?
You need to know what the mtg insurance costs to make an informed decision. If you are flipping it in one year, I'd think the mtg insurance would make the most sense
Do some more work....get to know your local real estate market. A year from how is too hard to judge....
Well to begin with, lets say you do own the home for one year and sell it to make $10k. Based on the structure that you mentioned you would have paid that $10k in intersest alone during that year. Not to mention closing costs and the money you put into the house. Also, only living in the house for 1 year will open you up to paying capital gains on any profits you do make. If this is an investment, then it is not a good one.





Just my 2 cents





Good Luck!
first get u r self informed before u sign on the mortgages. try to get in the mortgage 2 year contract stating that u will stay with them for 2 years . after those 2 yrs u should be able to get a better loan with less to pay every month and a little more money will go to the house,





i would suggest that u do not get in more debt and have some spare money more at least 5 months to pay u r morgage.life is unspected
No! Don't get another loan for the 20% down...if you can try to get as much down payment as you possibly could. Best thing to do is to put 20% down payment so you don't have to pay the PMI because that's not tax deductible. But if you could only put the 10% down %26amp; pay the PMI then go for that. Where do you live anyway? I would kill to buy a home for that price; here in DC is outragous!~ GOOD LUCK!
i own five properties and this is what ive done to get there. if your short term goal is to buy and sell within a year i would do an interest only loan. take the extra money you were going to put down on the house and use it to fix the house. remember to focus on the kitchen and bath. there your biggest money makers. if you do it right your profit should be great. i would do an 80/20 loan. the 20% being a line of credit. that you can use to purchase another house or use to fix the house up so no money comes out of pocket.
The mortgage insurance should be between $70-80 per month for that sized loan. It makes the most sense if you are planning to flip. However - be very cautious right now. Be sure to check out the market in your area first. I have heard of several flippers who have actually had to take a loss this last year.
Your plans to own it for a year is where you went wrong.





Expecting a 10,000 profit is not reasonable in this market.





You may lose $10,000 after one year than make $10,000. Expect higher interest rates in 1 year and lower home prices.





You may want to read this report to get a handle on reality.





http://www.dynamictraders.com/images/Spe鈥?/a>





P.S. Buying it for less than a year and turning it for a profit worked in 2005, this is 2007 and a whole new ball game.
You could do a 1st and 2nd mortgage. 80% 1st and 20% 2nd and put no money down and pay no mortgage insurance (MI). But, you do need a credit score of 680 or higher.


I would compare the two payment loan with the one payment loan including MI. I would go with whats cheaper because you are only going to live there for a year. You gain little to no exquity by paying on a loan for just a year. The rehab will increase the equity...of course.


Ask about a full 100% financing. You can get 100% with lower scores but you will need MI with while getting good rates. I am a mortgage lender.
You have to do the math. Call up an insurance company and find out what you'll pay for a year. Compare that to how much a loan will cost.





There are types of loans that you can get now that don't have a lot of up front costs. Just be sure that you can pay it off, and that you're not cutting it so close that if it takes 3 years to sell you won't be bankrupt.





You need to do some footwork and look up loans, consider how much risk you're willing to take, what PMI costs and all that and then it should be a simple comparison of choices.