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The Down Payment
Perhaps no single decision in a real estate purchase has more variables than "How much money do I put down?" Conventional wisdom centers around either putting down as much as you can or as little as the lender allows.
If you put down a large payment, you get some leverage with the lender, such as little or no mortgage insurance, a good equity position, and perhaps a preferred mortgage deal. You will also have lower mortgage payments. One potential disadvantage of a large down payment is that you will be using after-tax dollars on which you could be earning interest. You will also have less tax-deductible interest.
When you buy a home with a low down payment, you will have more tax deductible interest, and your investment value percentage will increase faster. You will have little equity at the outset, and your monthly mortgage payments (and perhaps your interest) will be higher. However, you will also keep more of your own money in hand to potentially earn more interest in other investments.
Do These Real Estate Tips Really Apply to YOU?
We've learned these tips through years of experience as top Realtors. But we know that YOUR situation might be different. That's why we?re here. It's our job to personally advise homebuyers and sellers. Ask us if any tip that we've included here really applies to your situation. If you have any questions about these tips - or other tips you may have heard elsewhere - ask us! We'll respond quickly, for free, and without obligation...
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- NUMBER1EXPERT™ 
