My lease is up in 1 month, and I'm looking to buy a home in the next 4 weeks. I have narrowed it down to two that I am interested in.
I'm wondering about the type of mortgage I should get. Which combination of these variables would be best for me? How do I calculate?
Down payment: I can do 3.5% (FHA) all the way through 20% (though 20% would be more difficult)
Term: 15 year vs. 30 year fixed
PMI: If not 20% down payment... pay up front, or over time? Or not at all? Or lender paid?
If no PMI, HECL/double mortgage? 10-10-80 loan? 8-12-80?
Thank you for your assistance.
p.s. I have been averaging 19%/year in stocks, but started in 2009 so I have had crazy tail winds helping. I think I'd like to assume 8-10%/year as reasonable for average investing returns. So based on that, it seems like I want the largest mortgage possible, but I don't know how to calculate for PMI, impact on my income taxes, etc. Also assuming house price ~450k-650k and 2-5 years of residence.