Buying a house, how much % down payment?
Looking to buy a house from $1.5-$2m in either Seattle/ATX/Long Island NY pending my partner’s job offer. Currently we have about $1m cash (in stocks & cds), and $450k mortgage (2.75% rate, planning to hold 4ever and rent the house out). When the rate was low, it was no brainer to just put down whatever the lowest down payment. However with the current 7-8% rate, what’s the best % to put down? TC (household): current 700k, expecting 900-1M with new job.
It sounds like you'll be moving to wherever the new job is. If you're going to be new to the city, you'll want to rent for a while so you can really understand the area. Add on to that the high interest rates, and I really feel strongly that renting is your best option right now. Keep saving, and wait for interest rates to dip a bit.
Don’t just buy in year 2. Rent a sfh using the rent money u get from ur existing house. Take ur time to tour houses and see what u really like. Interest rates are horrible too, I think they will come down by next year. U can buy then, till then save money and build up a bigger down payment
Keep some cash for emergency, rest you can put into the house. Accumulate more with your great TC
100%
With that TC the question should be: do you want to give “free” money to a bank, yes or no? If the answer is “yes” then take a mortgage and put 20%+, otherwise, sell your current house and buy the new one without a mortgage.