Hi all,
Second home Loan
- Around 45% downpayment (to meet 50% DTI)
- 6% apr
- 1800/month mortgage (principle and interest)
Investment Loan
- only 20% down
- 7% apr
- 2900/month mortgage (principle and interest)
Notes:
- I can still break even on Investment loan when renting out
- I'll be paying an extra 1100 per month if I take the investment loan
- Normally I would take the Second home with the lower APR, but I have to come up with 45% downpayment compared to only 20% for investment loan.
- I will refinance once the interest rates goes down a bit (hopefully in the next 5 years)
Should I take the second home loan and pay a 45% downpayment or save that extra 25% downpayment and take the investment loan and pay an extra 1% on APR as well as an extra $1100 a month?
Any comments/advice are appreciated. Thank you!
