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Hello James,

        You are obviously doing a lot of homework yourself, as I would prior to deciding on alternate strategies for a medical problem. However, in both cases accurate information is required in order to make the optimal decision.

I believe you have reached the point of needing accurate current data, placed in its correct context, in order to decide how to proceed.

For example, let’s look at the scenario you described in your question.

Purchase price – $360,000

Loan $288,000 – o.k.

20% down – o.k. but maybe not the best choice, as you are already aware.

6.00% interest – Wrong. Worst case is 5%. (A $200 per month difference in payment)

Property Taxes about $300 per month – Wrong. On $375,000 will be $390:63 per month. A $90:63 difference.

Hazard Insurance $100/m – Wrong. $60 per month is a good estimate. A $40 per month difference.

Just these few differences would allow you to buy up to $400,000 for the same monthly cost. This takes you into the Piedmont High School district with its much superior education system.

You’ve taken the time to build your knowledge and vocabulary well. Now you need real facts and numbers in order to become an educated buyer in a market place where getting it wrong can be very expensive.

I’m not going to base important decisions about my health on “free” research and advice from the Web. I want the alternatives to be explained by a professional, and specifically as they apply to me, not some mythical Mr. Average.

I suggest you take a similar approach and hire a Realtor who will explain the options available to you, and help you understand the pro’s and con’s of each one.

Sorry if this seems “preachy” but I feel very strongly about the mass of incorrect and misleading advice and information being spread throughout Radio, T/V, “News”papers, Magazines, and the Internet. These sources are not interested in supplying information relevant to you and your situation. Their sole motivation is to sell advertising.

Why not hire your own professional who can advise and inform you based on your unique circumstances, at this specific time, and with regard to your medium and loan term plans.

However, here’s a brief excert from a Mercury News Article discussing how different School Districts are handling the swinging budget cuts they are getting as the State works on cutting it’s huge deficit. http://www.mercurynews.com/cupertino/ci_15090121

“The exception to continued cuts is the Cupertino Union School District. A teacher union agreement to take furlough days, plus an unprecedented community campaign that raised more than $2 million, saved 107 teacher jobs and will preserve 20-to-1 class-size ratios in primary grades”.

Anyone aware of other school districts where all interested parties are co-operating to ensure the level of education is treated as the most important factor?

California is a virtually bankrupt State with the 3^rd worst educational system in the Country.

To be allocating $200 million to such a program, while simultaneously imposing huge cuts on education, seems to me the height of irresponsibility.

In practice this program will chiefly benefit people who would be buying anyway, and steer them toward new construction. I don’t see this as anything Realtors should be cheering about.

Banks and Builders however are welcoming it with huge sighs of relief.

Just my opinion.