Hey everyone, I have a question. My training job is ending soon and I will be moving to Texas for a permanent job that pays very well and is very secure assuming we have a functional society after COVID. My wife and I are looking at buying a house as we will be living there for at least a decade, probably until we retire in ~15 years.
Right now we have enough savings in stock/bond funds to cover a 20% down payment on the house. The mortgage brokers (a local credit union that works with staff hired at University of Texas branches) are offering me the option of having two loans:
The first is a normal mortgage for 80% of the house's cost for 30 years, 3%, some negligible fees.
The second is a loan for 10-15% of the house's cost (my choice) for 20 years, 3%, no fees - balance due at 21 years.
This would leave a 5% down payment + the closing costs.
I think this plan is reasonable, especially with the hit the stock market has taken. My initial plan was to cover the down payment by withdrawing our bond funds (which haven't dropped), but this option seems a better idea given how low the interest rates are.
Regardless of how we do things, housing costs + property taxes would be ~25% of my total salary, or 40% after federal taxes & maximizing retirement/pension contributions.
Any reason this would be a bad idea? I'm not planning on any purchase until we have a better idea of how the pandemic will affect Texas, but either way it'll have either been controlled or burnt through by the time we would be buying (September).