How Much Should You Put Down When Buying A Home?
The answer will always be that it depends as no two scenarios are the same but with where rates are right now for most it’s a good idea to put as little down as possible. There are many reasons for that such as owning a home as additional costs that renting does not.
Another reason is so you don’t have too much money tied up in any one asset and you use your mortgage as a financial tool to build your net worth. Here is a great article “How much money you need to save each day to become a millionaire by age 65” and in the article is the chart above. Putting money away today and letting it grow and compound so you can retire. Also, keep in mind that a mortgage payment is after tax dollars where some retirement accounts such as a 401(k) are pre-tax dollars.
This is the perfect example of when you are dealing with a mortgage professional it’s not what is the lowest rate but the best product to increase your net worth.