Tech Industry
21h
1661
Metamate- cringe max posts by this wannabe influencer
Tech Industry
2h
553
Brother beaten severely as a kid. Doesn’t speak to dad at all now.
Software Engineering Career
15h
1054
Why does leetcode get so much hate?
Ask Blinders
22h
993
Why no one cares about the lives lost in Gaza, Israel and busy in their own lives?
2024 Presidential Election
12h
243
Crime is down
We have saved this much for the down payment. Question: is it better to use all for down payment or down less and reinvest? Fam of 3 TC:$600k No other debts
I did something similar too so I don’t pay a lot of money in interest
It's good but keep a reserve in case if an emergency
Where da house at?
Model it out yourself with the appropriate CAGR and interest deduction valuations. There will always be some uncertainties though. Interest rates go down, you can refinance, so putting down lots may be ill advised. You lose a job, a higher monthly payment becomes harder. Interest rates go up, and relying on a potential refinance isn’t smart. Impossible to know what will happen in the future. My personal preference would probably be to be conservative and put more down, but I would be surprised if the numbers are so far in favor of one decision or another that the math should outweigh your personal risk aversion.
Another factor to consider whether some of your savings is stock and if you have to sell it you'll pay taxes on it.
1.2 mil - in Bothell or Lynwood?
NW?
Which area?
Don’t forget you’ll need cash for taxes, renovations, unexpected repairs, furnishings, and a savings in case your personal circumstances change — like a layoff.
With current rates, I would put as much down as I can.
That’s our initial thought too - TY!
+1 this recommendation. But you should model out being able to deduct interest expense from income. Essentially your marginal tax bracket - probably 45% in CA multiplied by the 6% interest on the extra loan principal by only putting 20% down payment so the $160k extra loan. So 6% interest * $160k extra loan * 45% tax rate = $4,320 in tax savings per year. Just a rough estimation. That’s 2.7% return on the $160k + the market return on investing the $160k.