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What's the most amount of money you'd put down on a new house? It would be a new build.
Posted on 3/2/24 at 9:59 am
Posted on 3/2/24 at 9:59 am
Excluding the guys who are well off enough to pay cash.
20%? 25%? Do you put down enough to where you are comfortable with the monthly note?
Just curious to see varying thought processes.
20%? 25%? Do you put down enough to where you are comfortable with the monthly note?
Just curious to see varying thought processes.
22
Posted on 3/2/24 at 10:01 am to VermilionTiger
Loaded question, depends on a lot of other factors. With higher interest rates definitely tempted to put more down if the cash was available. No less than 20% obviously
Posted on 3/2/24 at 10:08 am to UltimaParadox
True. I get that it's a loaded question. The cash is on hand for 40% down payment, but I figured some here would suggest against it and go for a better return with that money being used elsewhere
Posted on 3/2/24 at 10:16 am to VermilionTiger
With rates at 6-7%, I’d find the balance to where you put as much down and still feel financially secure. Everyone is different though.
I put 50% down when rates were less than 3% thinking I’d want to pay it off in 5 years and be debt free.
Kicking myself now that I could be coming out ahead by 2 grand per year with a simple HYSA if I only would have put 20% down.
I put 50% down when rates were less than 3% thinking I’d want to pay it off in 5 years and be debt free.
Kicking myself now that I could be coming out ahead by 2 grand per year with a simple HYSA if I only would have put 20% down.
Posted on 3/2/24 at 10:36 am to VermilionTiger
I’d put as much down as possible with 7% rates.
Posted on 3/2/24 at 12:13 pm to Rize
quote:
I’d put as much down as possible with 7% rates.
Meh. Treasuries and hysa are paying ~5%
That’s not that big of a delta to give up as much liquidity as possible.
Posted on 3/2/24 at 12:26 pm to VermilionTiger
20%. Length of mortgage is more important. Try to only purchase what you can afford with a 15 year note.
This post was edited on 3/2/24 at 12:28 pm
Posted on 3/2/24 at 1:41 pm to VermilionTiger
Mortgage guys can probably chime in but the best interest rate terms are typically with 25% equity. Maybe 30% depending upon the underwriter.
Edit to add: interest rate terms are most important when you will be in the same mortgage for a long period of time. 3-8 years... not so much.
Edit to add: interest rate terms are most important when you will be in the same mortgage for a long period of time. 3-8 years... not so much.
This post was edited on 3/2/24 at 1:42 pm
Posted on 3/2/24 at 3:49 pm to VermilionTiger
As little as I have to.
Posted on 3/2/24 at 5:04 pm to VermilionTiger
quote:
Do you put down enough to where you are comfortable with the monthly note?
That was our strategy. We put 21.5% down even with a VA loan when we bought our new build last September because of the 6.1% rate. The monthly note is a lot more manageable because of it
This post was edited on 3/2/24 at 5:11 pm
Posted on 3/2/24 at 6:24 pm to VermilionTiger
Posted on 3/2/24 at 7:38 pm to JohnnyKilroy
quote:not to mention, mortgage interest is deductible, earnings are taxable. This tightens the delta even more. I would put down enough to avoid mortgage insurance.
I’d put as much down as possible with 7% rates. Meh. Treasuries and hysa are paying ~5% That’s not that big of a delta to give up as much liquidity as possible.
Posted on 3/2/24 at 7:46 pm to XenScott
quote:
I’d put as much down as possible with 7% rates. Meh. Treasuries and hysa are paying ~5% That’s not that big of a delta to give up as much liquidity as possible. not to mention, mortgage interest is deductible, earnings are taxable. This tightens the delta even more. I would put down enough to avoid mortgage insurance.
Is it? I thought something changed when Trump was in office but maybe it’s just writing off a proration of your mortgage when you work from home.
I just know if it is I don’t have enough write offs to get higher than the standard deductible.
This post was edited on 3/2/24 at 7:54 pm
Posted on 3/2/24 at 7:54 pm to VermilionTiger
quote:
I get that it's a loaded question. The cash is on hand for 40% down payment, but I figured some here would suggest against it and go for a better return with that money being used elsewhere
I just went through this with a home purchase last year. I was going to put 35% down on a jumbo with chase.
Chase mortgage broker came back the day we were going to lock and said he ran the numbers and said I’d actually save an eight by only putting 25% down (I believe bc Chase wanted a larger loan for the same amount of work or bc 75% LTV fit into more securitizations).
ask what the recast policy is. I can recast unlimited times, zero fees with Chase. Rate stays the same, pays down principal recalcs monthly payment. As long as it’s a minimum of $10k.
I think the move is to put 25% down, put the rest in high yield money mark/savings. Leave the cash flexibility, recast later if you want a lower payment but don’t use up all that cash now.
Posted on 3/2/24 at 7:56 pm to Tifway419
quote:
I put 50% down when rates were less than 3% thinking I’d want to pay it off in 5 years and be debt free.
This was not a smart move, and this isn’t hindsight. Anyone that told me they were doing this at the time I’d have told them they were a moron.
This post was edited on 3/2/24 at 7:58 pm
Posted on 3/2/24 at 7:59 pm to Motownsix
quote:
As little as I have to.
See I’d rather put down as much as possible to lower the monthly note. The difference between 20% and 50% is a couple grand a month.
Posted on 3/2/24 at 8:59 pm to Rize
I would be inclined to but down less over max I had available.
Reason being is that I expect rates to make a dramatic decline to allow for a refinance. I haven't looked but is a 30yr still running around 6.5-7%?
Within the 4-5yrs I expect that to dip to half that. Also always pay at least 1 extra payments a year.
Reason being is that I expect rates to make a dramatic decline to allow for a refinance. I haven't looked but is a 30yr still running around 6.5-7%?
Within the 4-5yrs I expect that to dip to half that. Also always pay at least 1 extra payments a year.
Posted on 3/2/24 at 9:11 pm to VermilionTiger
If you can’t put down 20% minimum, then you can’t afford it.
Posted on 3/2/24 at 9:15 pm to BabyTac
quote:
If you can’t put down 20% minimum, then you can’t afford it.
Terrible advice
Posted on 3/3/24 at 7:28 am to VermilionTiger
We put down 20%. That being said, it depends on what 20% equals in dollars.
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