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Message
How much down payment would you put down?
Posted on 6/12/24 at 8:25 am
Posted on 6/12/24 at 8:25 am
If you were buying a property for 500k. Have 100k cash on hand, no other debt. Make enough money to where the payment wouldn't be too much of a burden either way.
VA Home Loan lets you buy with no money down without incurring PMI. Would you put 0 down, 100 down, or somewhere in the middle?
VA Home Loan lets you buy with no money down without incurring PMI. Would you put 0 down, 100 down, or somewhere in the middle?
14
Posted on 6/12/24 at 8:26 am to Thundercles
If you are VA eligible 0 down always
I dont understand why anyone would ever put 20% down on a home now
Especially when there is a 0% chance you will ever pay it off
I dont understand why anyone would ever put 20% down on a home now
Especially when there is a 0% chance you will ever pay it off
Posted on 6/12/24 at 8:29 am to Thundercles
$0
Posted on 6/12/24 at 8:30 am to SDVTiger
quote:
If you are VA eligible 0 down always I dont understand why anyone would ever put 20% down on a home now Especially when there is a 0% chance you will ever pay it off
I’m in the process of building or buying a new home and plan on putting as much down as possible. Hopefully 50 to 60%.
I guess I could invest the money in something else but would just hate having a higher mortgage.
This post was edited on 6/12/24 at 8:32 am
Posted on 6/12/24 at 8:32 am to Thundercles
What’s the rate? Do you have an emergency fund beyond the $100K?
You need to value the liquidity of the $100K versus the opportunity cost of “guaranteed return” of not financing that portion (vs. alternative uses of that money to generate better returns net of taxes).
You need to value the liquidity of the $100K versus the opportunity cost of “guaranteed return” of not financing that portion (vs. alternative uses of that money to generate better returns net of taxes).
Posted on 6/12/24 at 8:33 am to SDVTiger
quote:
I dont understand why anyone would ever put 20% down on a home now Especially when there is a 0% chance you will ever pay it off
Say more. On face value, I don’t understand these blanket statements.
Posted on 6/12/24 at 8:39 am to Thundercles
It depends on what else you would do with the 100k. If you feel very confident that you will make more than the interest you would pay, then a smaller down payment might make sense. Other than my first home, each house I have purchased was 20% down on a 15 year term. I prioritize lowering long-term total cost of ownership in my homes, as well as rentals I have purchased over the years.
Posted on 6/12/24 at 8:43 am to Thundercles
Enough down to where the mortgage payment is never a burden and doesn't negatively impact my ability to save for retirement and easily meet my other expenses.
Posted on 6/12/24 at 8:43 am to SDVTiger
(no message)
This post was edited on 10/24/24 at 9:22 pm
Posted on 6/12/24 at 8:52 am to SDVTiger
quote:
Especially when there is a 0% chance you will ever pay it off
I fully intend on paying my house off as quickly as is reasonable. The faster I get that done, the faster I can pick a year to retire.
Posted on 6/12/24 at 9:26 am to Thundercles
quote:
I fully intend on paying my house off as quickly as is reasonable
Everyone says this.
If thats truly your goal then put the 20% or 100k down and get a 10yr fix to ensure you acheive it
Posted on 6/12/24 at 9:30 am to lynxcat
quote:
What’s the rate? Do you have an emergency fund beyond the $100K?
These were my first two questions. Always keep an emergency fund on hand.
As for rates, if it’s 6.5%, put as much as you are comfortable putting down. If it’s 4.5%, I’d put down $0 and put that money into T-bills or a CD.
Posted on 6/12/24 at 9:35 am to Thundercles
As little as possible.
Posted on 6/12/24 at 9:54 am to Thundercles
I fully intend on paying my house off as quickly as is reasonable. The faster I get that done, the faster I can pick a year to retire.
_______
Good intention but many factors come into play. What else you would do with the money, how long you stay in this house (ability to fund down-payment for next house), discretionary net income, health expenses, and emergency funds are considerations.
_______
Good intention but many factors come into play. What else you would do with the money, how long you stay in this house (ability to fund down-payment for next house), discretionary net income, health expenses, and emergency funds are considerations.
Posted on 6/12/24 at 11:04 am to Thundercles
Posted on 6/12/24 at 11:04 am to Thundercles
I would put $0 down but discuss with your mortgage lender to see if you can rework the monthly payments if you make a large payment several months down the line.
With that $100k, I would use it to fund any renovations I may be considering, as well as making sure it is fully furnished to my liking after I move in. The wife always seems to want to upgrade something. Then consider dropping the balance on the principal, or just invest
With that $100k, I would use it to fund any renovations I may be considering, as well as making sure it is fully furnished to my liking after I move in. The wife always seems to want to upgrade something. Then consider dropping the balance on the principal, or just invest
Posted on 6/12/24 at 12:57 pm to SDVTiger
quote:
If thats truly your goal then put the 20% or 100k down and get a 10yr fix to ensure you acheive it
10 yr? Extreme Dave Ramsey over here. Even if you wanted to pay it off in 10 yr, get a 30 yr mortgage to give optionality on cash flow if you get tight for whatever reason (.e.g, laid off, personal issues, etc.)
Posted on 6/12/24 at 2:04 pm to lynxcat
quote:
Even if you wanted to pay it off in 10 yr, get a 30 yr mortgage to give optionality on cash flow if you get tight for whatever reason (.e.g, laid off, personal issues, etc.)
agreed
Posted on 6/12/24 at 2:45 pm to Thundercles
I did 0% with my VA when rates were at 2.7. I would not do that with rates in the high 6s/low 7s.
Posted on 6/12/24 at 8:51 pm to lynxcat
quote:
0 yr? Extreme Dave Ramsey over here. Even if you wanted to pay it off in 10 yr, get a 30 yr mortgage to give optionality on cash flow if you get tight for whatever reason
Yeah I guess he skipped the reasonable part. I figured I'd target a 15-23 year depending on how things went.
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