Not sure what happened with my last post. But the question is, if I'm taking $500K loan on a $700K purchase, is it better to take

The rules are different depending on which type of loan scenario you looking at.. Are you purchasing or refinancing? Are you doing cash out refinance or just a rate and term refinance? Is the property investor owned or primary residence, or 2nd home? Under most circumstances, you can do finance $500K on a $700K home. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mid to Long term a fixed rate on the high balance is with out question a better option. Rates are artificially low in todays market. You can get a High balance rate under 4% fixed for 30 years.

Initially, the first mortgage second mortgage option will give you the lower monthly payment. Then the analysis getsmore tricky. Where are rates headed one year from now? Two years or more from now? My suggestion...if you can use a mortgage calculator is to assume the second mortgage eventually will get to8% and see what that payment will be based on what you think you will have paid off in two years, for example.If you are going to pay down the second more quickly and use it as an equity line of credit in the future forwhenever you may need it...then the first mortgage/second equity line of credit makes sense. II do not do many of these any more probably because people just do not ask for them. The rate is still excellentat the super conforming loan size and often only one eighth higher or two eighths higher at the most.

more secure way would be go with high balance loan at rates around 4 ish depending on rest of your profile, but going down to 417k and securing a second at prime minus 1 is not a bad deal and you can always look to pay down if rates start going up