Interest rate comparisons, which is best way to go?

[Jeremiah Lee]

If I were purchasing a SFH as my first investment property outside of my primary mortgage, Is one of these options clearly a better way to go? Assume if I only put down 20%, i'd use the remaining cash to save towards my next investment home.

Sale Price: $120,000

30 yr fixed

Option A

Interest rate: 4.5%

Down Payment: $30,000 or 25%

Total Cash Required: $34,967

Option B

Interest rate: 4.625%

Down Payment: $30,000

Total Cash Required: $34,517

Option C

Interest rate: 4.875%

Down Payment $24,000 or 20%

Total Cash Required: $28,751

Also, is shopping around the only way to determine if your getting a fair deal?  Thanks!

[Jeffrey Long]

This is the perennial question of leverage. Would you prefer safety? Put the bigger down payment and get the lower APR with option A. Would you prefer to save the cash and put it towards getting a third property? Pick option C.

It all depends  on who you ask and if they have a conservative or risky strategy.