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I was convinced a 20% down payment was the only way until a first-time buyer seminar in Cleveland...
The presenter showed a graph where putting down just 5% and investing the rest actually built more wealth over 30 years in our local market, so has anyone else run the numbers and found a smaller down payment made more sense for them?
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wesley_adams17d ago
Why does this feel like every diet plan ever?
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elizabethg8518d ago
That part about putting down 5% and investing the rest really got me thinking... I saw a similar breakdown in a blog post for our area. It showed that if your investment return is higher than your mortgage rate, the math does work out over the long haul. But it really depends on being strict with actually investing that extra cash and not spending it. The peace of mind of a lower payment with a bigger down payment is a real thing too, even if the numbers say otherwise.
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adamk9518d ago
Honestly I read a whole thread on this last week. The math checks out on paper but it assumes you're a robot who never touches that extra money. Tbh most people will have a car break down or see a vacation deal and dip into those funds. The peace of mind from a smaller monthly payment is huge, especially if your job isn't super stable. Ngl I'd probably sleep better knowing my housing cost was lower even if I missed out on some gains.
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