Originally Posted by
CowboyPilot79
Here it goes...lol
There are valid arguments on both sides of this debate, it really comes down to ORM. Our risk acceptance level is much lower, the only reason we are considering a mortgage on this house is to get wife and kids moved and expecting our current place may sit for as long as a year on the market. Once it sells we will pay off the other house. We *could* pay cash now for this one too but that leaves us with very little margin, $400k+ tied up in houses and most likely two months until I start indoc. No room for hiccups. We are willing to eat the $3k and some interest until we pay it off to avoid being that close to the line on our available cash. We aren't willing to play the market gap long term. Just not for us.
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I’d also be VERY selective right now.
Many markets are way overheated.
The real estate market will likely collapse (or at least aggressively correct) over the next couple of years. Don’t want to be 100 k upside down on something you can’t sell if life happens.
No matter how you choose to work things, definitely have enough of a down payment to avoid PMI (private mortgage insurance.) That is “insurance” which covers only the bank and which you pay 100% yet benefit from in no way. It’s throwing money in a pile and burning it.
PMI should be illegal. It’s like paying a royalty to the guy who stole your TV-just to watch him stick it in his car.
Definitely-Most Definitely do get title insurance. It is ultra cheap-and will save your ass if someone makes a clerical error somewhere along the title trail.