u/Broad-Set-737

Hey all. Im not the best with finances, ive had different suggestions from a few different people.

Im closing on our home on the 29th.

200k list, we talked then down to 190k. 30 year fixed conventional. Im putting 5% down, lender is offering a 3% match. The down payment and closing costs are covered by a 20k gift from my parents. We negotiated 2k in seller concessions due to sewer line cleaning and a few other minor issues.

Lender gave me 3 options on the loan application.

First option is 6.5%, 14k cash to close. PITI is estimated at 1550 a month

Second option has lender credits. Loan officer is pushing this option on me pretty hard. 7.65%, 8.5k to close. PITI is estimated at 1720. He suggested refinancing and He said it would take 48 months to break even.

He gave me a middle of the road option. 7.1%, 11k to close. PITI was estimated to be 1650.

I initially caved and went with option 2 to have more cash on hand to work on the home. My wife thinks we should go with option 1. My parents think we should go with option 3 and refinance after we break even. Im leaning towards going with the option that has the lowest interest. It feels like a gamble to take the higher interest, but that could just be from my inexperience.

These numbers were given to me before we negotiated seller concessions.

Edit: Thanks for the responses. Im going to go with the lower interest rate option.

Hey all.

I just got off the phone with my loan officer. We spent the last 90 minutes going over my loan application. I dont have too many people to talk with about this, and im terrible with understanding financial talk, which is what brings me here.

Im being gifted 20k towards a home from my parents. Im purchasing a home for around 195k on a 30 year fixed conventional. My intent was to use the 20k to cover down payment and closing. Im putting 5%, the lender is supplying 3% of that 5% which equals about 3800.

I was presented with two options.

Option A has no lender credits. P&I is 1170 @6.5 with 14k required at close.

Option B has lender credits. P&I is 1292 @7.5 with 8k required to close.

The loan officer is heavily pushing for Option B. Hes selling it to me as having more cash on hand and to refinance in 4 years if rates have gone down.

I went with the option that has lender credits because im a sucker and having more cash on hand to cover moving expenses would be great. My wife thinks I should go with option A to lock in a lower payment than what we are currently renting for.

I currently rent and pay 1700 a month for rent. With taxes, PMI, and insurance, Option A is estimated to be 1580 a month. Option B is estimated to be about 1720 a month.