We purchased and rehabed a HUD house. We have had it 6 months and have it rented.
We are trying to decide between 2 options for financing.
1) 30 yr fixed at 5.875 with $2500 closing costs. Amount is 75% of apprasial amount.
2) 30 yr/15 yr balloon at 7.5% with minimum closing costs. Amount is 80% of tax value.
The concern is the apprasial will not come back at the amount we need. With the second option we could get 5K extra but we would be paying more in the rate. We don't know how long we will hold the house. Depends on the economy.
Any thoughts?
Julie
We purchased and rehabed a HUD house. We have had it 6 months and have it rented.
We are trying to decide between 2 options for financing.
1) 30 yr fixed at 5.875 with $2500 closing costs. Amount is 75% of apprasial amount.
2) 30 yr/15 yr balloon at 7.5% with minimum closing costs. Amount is 80% of tax value.
The concern is the apprasial will not come back at the amount we need. With the second option we could get 5K extra but we would be paying more in the rate. We don't know how long we will hold the house. Depends on the economy.
Any thoughts?
Julie