Imagine the following scenario:
- Gross annual income - $100k
- Cash (from property equity, shares, saving etc) - $100k
- No debt.
- Down payment - 20% (e.g. $20k) to be taken from cash pot.
- Mortgage - 30yrs fixed at say 3.5%.
So my question is will the remaining $80k be taken into consideration at all in terms of mortgage affordability or calculation is simply on DTI at 36% max of gross income?
Using online calculators that would imply house up to ~$688k (excl. taxes) yet I could use the $80k to pay $200+ every month for the next 30yrs on top of the required $3k mortgage payment...
I could of course use them to say put down a bigger down-payment, but with current (very) low interest rates wouldn't I be better investing part of the cash elsewhere (e.g. stocks, mutual funds etc) whilst keeping some to partially pay monthly mortgage bills?