You're in a good position.

The other money talk geniuses will probably give you better advice, but I wouldn't recommend putting down more than 20%.

Mortgage rates are too good right now to justify putting down more than 20%, IMO.

You say an additional 20% would save $500 per month. Well 20% more is ~$95K. $95K would take almost 16 years to make up the $500 difference. And that's if you had it buried in your backyard. "money now is worth than money later"

When you have your kids, is your wife going to stop working for ever, or just a few years?

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Posted by Joe

North Jersey

Member since Jan 2005

6326 posts

Posted on 8/25/13 at 3:44 pm to LSU6262

quote:
When you have your kids, is your wife going to stop working for ever, or just a few years?

Not forever, but for a while. 5-7 yrs?

quote:
stick with the 20% down, but I would honestly suggest you look for a cheaper home. Where in Jersey are you looking? You don't want to get in a situation where you're house poor. stick with the 20% down, but I would honestly suggest you look for a cheaper home. Where in Jersey are you looking? You don't want to get in a situation where you're house poor.

350K gets you 3BR 1 Bath up here on a small lot.

500k gets you 4BR 3 Baths on a much larger lot.

The thing is, we have been looking for a while, and there is nothing in between. You either get a small home around 350k, or you jump to 475-500 for something nice. Ideally would be the 425ish mark, but that price point just doesn't seem to exist.

From the consensus, it seems the general rec to just put the 20% down, and put the other 20% in some sort of investment vehicle to only use towards housing payments, correct?

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