Reply to "Down Payment on a House"

I've had a lot of experience in buying homes and your question, Moore Income, depends on so many other circumstances.  It's ideal to put as much down as possible sometimes, ie if this might be your last home, or you get a better long term interest rate, or if that is the only way to qualify for a mortgage. However, if you tend to move a lot,  or you are a young couple with limited cash reserves, or you do some juggling often with available investment funds, I always believe the least amount down is the way to go.  And I'm just touching the tip of the iceberg of when it makes sense or when it doesn't make sense to tie up cash in property.  And last but not least, it depends on mortgage interest rates.  I'm old enough (sadly, yikes!) to remember interest rates in the 'teens, so 4 or 5% is LOW; and the higher the rate, the higher down payment relieves the monthly sting. A good financial adviser (not a bank or mortgage company) can really help people make that decision based on their own particular circumstances. I always bought with as little cash needed as possible.  One thing I didn't do was roll closing costs on top of a mortgage. If that is the only way to buy a house, it can be considered, but personally if someone is that strapped for available cash, it might be wiser to try to save those costs before purchasing a home. Again, a good knowledge of how money works best in every circumstance is the key here, I believe.

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