Zillow Advice: Mortgage Types - What is the best loan type if i would like to buy a home and live in it for 4-5 Years only. http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Zillow Advice | Zillow Real Estate a lender suggested i do a ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ a lender suggested i do a bridge loan. any thougts on this. i own a house with 96,000 left on it and i want to purchase for 250,000. once i sell my current house i can put what i make off of that into the remainder for the home i want to purchase. my bridge loan would be about 1400 per month with both homes. Fri, 03 May 2013 23:44:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2013-05-03T23:44:00Z Remember---there is a BIG ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Remember---there is a BIG difference between having a low enough principal balance that you don't have to bring cash to closing when you sell in a few years vs. having an economic loss&nbsp;on account of the&nbsp;home&nbsp;becoming worth less than what you've paid for it.<br/><br/>Would you deliberately invest in any asset that you thought would be worth less in a few years, knowing that you would be selling it at a loss?<br/><br/>Notwithstanding the fact that there may be important reasons to own vs. rent, which having nothing to do with overall economics, I would still thoughtfully consider this, because as a general rule, aside from the fearless flippers out there, investing in real estate is a long-term economic strategy due to limited liquidity &amp; high transaction costs to sell.<br/><br/>A basic rule of thumb is to only invest when you feel confident that there will be enough projected appreciation to offset the transaction costs of selling later. Sat, 21 May 2011 16:58:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-21T16:58:00Z With the current rates as ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ With the current rates as low as they are, my advise would be a 15 yr. fixed.&nbsp; Even if the market declines your chances of breaking even are much better.&nbsp; Sat, 21 May 2011 16:29:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-21T16:29:00Z If FHA is your only option, ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ If FHA is your only option, a 5/1 ARM is a good one. The loan would be amortized for 30 yrs. but you could pay any additional payment you would like i.e. 20 yr amortization or 15 yr.amortization.&nbsp; Since max. increase annually years 6-10 is 1%, the average interest rate worse case for 8 yrs. would 4%. If you stayed just the 5 yrs. you mentioned the, savings would be approx. $3K over 15 yr fixed.&nbsp; As far as not buying a home vs renting for a short period of time, that is your personal decision. The big issue is typically not enough equity to pay selling expenses and mortgage pay off, but with you amortizing a loan for 15 or 20 yrs. that would likely eliminate that concern. Not counting your down payment, you would have over $25K principle reduction from 20 yr ($37K+ if 15 yr) amortization based on $150K initial loan balance. Sat, 21 May 2011 15:46:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-21T15:46:00Z I would highly recommend ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ I would highly recommend looking at the information that Dan posted before making&nbsp;this home&nbsp;purchase at all.&nbsp; When you consider the transaction costs of selling your home in just a few years, you will likely have lost money.&nbsp; If real estate values decline at all in Collierville, you could be in big trouble.<br/><br/>Current predictions for TN is a 3-5% decline this year.&nbsp; See for yourself:&nbsp; <a href="http://www.housingpredictor.com/2011/tennessee.html" rel="nofollow">http://www.housingpredictor.com/2011/tennessee.html</a><br/><br/>If you don't have a long term holding period to mitigate the transaction costs and risk of further declines, you could be taking quite a gamble on this.<br/> Sat, 21 May 2011 03:42:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-21T03:42:00Z Thanks to everyone for their&nbsp;valuable&nbsp;advices. ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Thanks to everyone for their&nbsp;valuable&nbsp;advices. We are going with a 15 Yr Fixed Loan.&nbsp;<br/> Fri, 20 May 2011 16:09:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-20T16:09:00Z Honestly, fixed rates are ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Honestly, fixed rates are so good, it is difficult for me to suggest an ARM.&nbsp; I would go on a fixed rate 15 year if you can handle it!!&nbsp; Thu, 19 May 2011 20:43:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-19T20:43:00Z Yes I am comfortable with ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Yes I am comfortable with a 15 Yr Fixed Payment plan. Tue, 17 May 2011 13:21:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-17T13:21:00Z Are you comfortable with ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ Are you comfortable with the 15-year fixed payment? Tue, 17 May 2011 06:20:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-17T06:20:00Z 5 year arm but make sure ... http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 5 year arm but make sure it is amortized.&nbsp; This mean no interest only since house values continue to drop.&nbsp; If you do an interest only chances are you will need to come in with money to sell your house.&nbsp; Because of the falling home values an interest only loan can me dangerous if you plan to move soon. Tue, 17 May 2011 03:34:00 GMT http://www.zillow.com/advice-thread/What-is-the-best-loan-type-if-i-would-like-to-buy-a-home-and-live-in-it-for-4-5-Years-only/399237/ 2011-05-17T03:34:00Z