Lower purchase price or lower interest rate? Need your help!

[Mark K.]

I wanted to get your thoughts on the scenario below. Would you rather choose option 1 (lower home price) or option 2 (lower interest rate). Ultimately the mortgage ends up being the same. Let’s assume you want to sell the house in 5-7 years, this is a primary residence. To me option 2 sounds better but wanted your feedback.

• With Option 2, you spend $100 more a month in interest.
• With Option 2, if you were to pay off the loan in 30 years, you’d be spending $26K more in interest.
• With Option 2, you saved $33K on the sales price.
• With Option 1, you have a higher bar to increase your home value at ($595K vs. $562K)