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Pro Tips: How much should I put down when buying a house?

It depends on your situation: your income, expenses, assets, liabilities, and goals. A conventional mortgage requires a 20% down payment or else private mortgage insurance (PMI) will be enforced on the mortgage until 20% of equity, or ownership, is reached. PMI is an unnecessary fee that should be avoided if possible. Also, depending on what the interest rate of the mortgage is, it may be more beneficial to only put down 20% in order to invest more money at a higher interest rate than the loan. Being that most mortgages have interest rates below 4% and even 3%, it is highly likely someone can achieve a higher rate of return than that by investing.

See also:
Blog: What I Believe to be the Best Investment Strategy

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