I searched the forum and couldn't find a similar question, so apologizes if this has been asked recently.
The wife and I are moving from TX to CA this summer and plan on buying a house. A house has not been picked out yet, but it is safe to assume that a 20% down payment will be between $40,000 - $50,000. We currently have this money in savings, and enough additional money to cover the closing costs of the house. We also have no dept (credit cards, house, car, student, etc.).
I was originally thinking to just pay the 20% down payment in cash, but with interest rates so low, I was looking for other options. Is it possible to take out a second 30-year loan for the 20% down payment, invest the $50,000 we have, and then use the income from the investment to pay the monthly rate of the second loan? What type of investments would work for this idea? Is there a better option than anything else mentioned?
Thanks in advance