Should I go ahead and close escrow on a 550k house now or back off and wait a few months for lower prices?

Is this is an opportunity or not? The facts are these:

My avg. FICA is 715, make about 85K p/year, have @ same job for 12 years (teaching) and have about 30K in investments ready to put as down payment and about 20K in cash.

The property is a Duplex in L.A. area (South Bay), I already put $ 3,000 as guarantee, The terms are to put 5% down; The loan is option is a 85/15. Tthe interest on the loan is 7% fixed on the big loan (85% Interest only for first 5 years), and 10.75% on the small loan (15% jumbo loan).

I just heard today more statistics on what has been suspected: more people defaulting on mortgage payments and a worldwide stock maket scare due to this. Countrywide. WaMu, and other lending institutions are in trouble. I know it’ll be hard to get better loan terms right now but I don’t want to let the opportunity go.

Is it better to wait few mos. untiI the storm’s gone or do I gamble with what I have on hand? (1st time home buyer)

Thanks for your advice. =0)

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