Bank statement loan now + refinance later — does taking lender credits make more sense?
Currently buying a primary home and trying to think through the smartest mortgage strategy.
Purchase price is around $1.3M with 20% down. I recently started a business, so I’m going the bank statement loan route for now rather than conventional financing.
The business is doing well, but since it’s still newer, the plan is to refinance into a conventional loan once I have more business history/tax returns and things stabilize further.
Right now I’m deciding between:
Lower rate with minimal lender credits
or
Slightly higher rate with larger lender credits to offset upfront closing costs
My thought process is that since this loan is probably temporary anyway, it may not make sense to pay a lot upfront to buy down the rate if I’ll likely refinance within the next couple of years.
I can comfortably afford the payment either way, so this is more about optimizing the numbers long term.
For anyone who has gone through a similar situation:
If you already expect to refinance later, does taking the higher rate for lender credits usually make more sense?