First Time Homebuyer Advice

[MustacheTiger]

Question is... How much to put down. My desire to reach FIRE has me wanting to put an extra large downpayment down, then pay the mortgage off very quickly. (To eliminate housing payments altogether in my monthly budget)

The home is 265k and I plan to put down at least 20%. I am here to ask advice, putting down 20% only uses ~30% of available cash (not including emergency fund even). With so much cash, I am tempted to put say, anywhere from 30-50% down to further decrease the mortgage payments and then be able to pay those off even more quickly. Is this unwise? I know investing that much cash gets better returns in theory, but being out of debt more quickly sounds a lot better than being invested in a risky stock market. Any help would be appreciated!

[Ankenystache]

Whats the interest rate and the mortgage term? Another factor is if you have any other debt with a higher interest rate.

[MustacheTiger]

30 yr 4.625%

no other debt. already maxing out 401k and roth ira

[waltworks]

Historically, stock returns are ~10% not including inflation.

You have a 4.625% loan available.

Nothing is guaranteed, of course. You might want to read the 10,000 "should I pay off my mortgage" threads here before deciding.

-W

[Arbitrage]

4.625% guaranteed return, most likely an after-tax return unless you're itemizing, which not many people would do with a mortgage of that size.

Would you invest in a CD that earns a tax-free 4.625% (possibly 6+% before taxes), or opt for stocks instead?  Some money in each bucket?  Many 'experts' think that expectations of future stock market growth should be in the 7% range. 

Food for thought. 

[chasesfish]

Is this your final home?  I can't argue with the people who want the feeling of a free and clear house.

For me as someone who's financially independent, I'm really indifferent.  If it's me, I just out the 20% down and leave the cash invested

[affordablehousing]

Put the minimum 20% down, you'll never get leverage that cheap again for investing.

[Telecaster]

Question is... How much to put down. My desire to reach FIRE has me wanting to put an extra large downpayment down, then pay the mortgage off very quickly. (To eliminate housing payments altogether in my monthly budget)

The home is 265k and I plan to put down at least 20%. I am here to ask advice, putting down 20% only uses ~30% of available cash (not including emergency fund even). With so much cash, I am tempted to put say, anywhere from 30-50% down to further decrease the mortgage payments and then be able to pay those off even more quickly. Is this unwise? I know investing that much cash gets better returns in theory, but being out of debt more quickly sounds a lot better than being invested in a risky stock market. Any help would be appreciated!

Unwise.  Put the minimum down.   

[Raymond Reddington]

Put 20% down. Make sure it's a fixed rate 30 year mortgage, and shop around for a better rate if one can be had. Also consider if the bank has any incentives like a cash back program if you open an account with them or commit to direct monthly payments from the account, as you can then apply the cash back to the principal if you'd like.