Perhaps no single decision in a real estate purchase has more variables than "How much money do I put down?" Conventional wisdom centers around either putting down as much as you can or as little as the lender allows.

If you put down a large payment, you get some leverage with the lender, such as little or no mortgage insurance, a good equity position, and perhaps a preferred mortgage deal. You will also have lower mortgage payments. One potential disadvantage of a large down payment is that you will be using after-tax dollars on which you could be earning interest. You will also have less tax-deductible interest.

When you buy a home with a low down payment, you will have more tax deductible interest, and your investment value percentage will increase faster. You will have little equity at the outset, and your monthly mortgage payments (and perhaps your interest) will be higher. However, you will also keep more of your own money in hand to potentially earn more interest in other investments.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Jeannie Costanzo
Keller Williams Realty
229 Route 32
Central Valley, NY 10917
845-234-2220
Fax: 845-230-8734
jeancostanzo@NUMBER1EXPERT.com

www.MyRealEstateJeannie.com is brought to you by Jeannie Costanzo, real estate for
Orange County, Rockland County and Dutchess County, New York

Read Jeannie Costanzo's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge