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Which loan should they choose and why

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Jim and Ester have saved $25,000 for a down payment on their first house which costs $100,000. The FHA loans for which they qualify requires them to put $10,000 down. A FHA mortgage will be 5.5%. A conventional 30-year mortgage will be 4.5% interest but requires 20% down payment.

Which loan should they choose and why?

What considerations must they make in deciding to buy versus rent?

Use the facts found in the text to back your ideas and suggestions for Jim and Ester?

Reference no: EM131298969

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