1st x hm buyer question...

[N/A N/A]

I realize my question is about home buying, but I view it as an investment vehicle as well.

I found a condo. Four story building on the fourth floor in Queens, 5 minute walk from Subway, 20 minutes from Manhattan on subway, 10 minutes on high speed express LIRR.

175K price.

8.5K down from me. I have 15K still available for additional closing costs in the bank.

mortgage broker wants me to do a 40 year mortgage on a loan for 185K.

He thinks the interest rate would be 6.75%, claiming that my down payment of just 5% and median fico of 720 and income (800+wk after tax) combined generate 6.75% for a 40 year. All that will Full Financial disclosure (pay stub review, w2 review).

This guy is local and I need to close fast, as a property in this area of queens at this price is rare and will sell fast (financials of the condo assoc have passed the test).

Why is this guy so gung ho on selling me a 40 year mortgage? Are the commissions better for him on a "subprime loan"? I feel like this guy is looking out for his commission rather than looking out for me.

Id rather take a loan on the remaining difference after 5% down at around 168K on a 30 year fixed.

What are your thoughts?