New answers tagged

1

I'm going to disagree with everyone here and say the opposite. You should put as little as you can into a deposit without incurring extra fees Extra fees could be in the form of mortgage insurance, higher interest rates etc. Put as little as you can into your deposit and then make sure you have an offset account to put the rest of your money. The ...


0

Think also about the cashflow. What will happen if you lose your lucrative job? Best is to make a down-payment to a house in which you will still want to live in 10 years, and which still leaves you with reasonable emergency fund (fix home issues, unemployment, health etc). Then, get 15 or 30 year FIXED mortgage (no surprises) which you can easily afford to ...


5

I would like to extend @Mohair's answer. A mortgage is a very cheap credit. Current interest rates in the UK seem to be around 1.5% (plus setup fees). Could you make more than 1.5% if you invest that money elsewhere (stocks, funds...)? If you use a tax-sheltered vehicle like an ISA, you could potentially be better off by paying a small deposit and placing ...


14

The question you really need to answer is: What else could I do with the money? Consider that you may need to furnish the house, or you may want to improve or remodel it, and you should reserve some funds to do that. You also need to consider how the down payment affects the transaction. For example, you will most likely get a better interest rate with 20%...


2

In the US and likely most other parts of the world real estate is expensive to transact. So in this case, it is best to find a home that meets your needs now and your anticipated needs in the future. You do not want to purchase a home today, that is a lower price, only to upgrade a short time later. Since you can afford it, buy the upgrade now. So to me, ...


15

Well besides that usually the money percentage you put down influences the interest rate (the more you put down the cheaper interest you get) you should consider the opportunity cost. This means if you recieve a higher interest on an investment than the rate of the mortgage it makes more sense to invest and have a higher mortgage.


38

As much as you can reasonably afford As long as you still have an emergency fund(which you noted you will have) then its always a good idea to put down as much as you can afford for the deposit. The more you put down now the less time repayments will take or the less the monthly outgoing will be. The higher monthly payments you can afford the shorter the ...


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