Author Topic: Home down payment  (Read 1949 times)


  • Stubble
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  • Posts: 183
Home down payment
« on: May 01, 2017, 06:02:46 PM »
To add to the recent mortgage debate frenzy, I have a related question: how much should one put down on a home? We're relocating to North Carolina from Boston, with the anticipated sale of our current home we will potentially be in a position to put down more than 20%. Is this a mortgage sin? Should we consider points instead?

FWIW I'm team don't pay down the mortgage:)


  • Bristles
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  • Posts: 286
Re: Home down payment
« Reply #1 on: May 02, 2017, 09:41:48 AM »
If you don't believe in paying down the mortgage you logically can't believe in points. 

If you want a lower interest rate get a shorter mortgage, such as 15 or even 10 years.

If you believe in investing instead of paying down take the 30 year as is with 20% down and invest the rest.  If you're REALLY confident screw 20% down and invest that too and just pay PMI....pmi is usually 1% of loan so to have your 20% down payment to make more than 1% of total loan you need to make 5% on it.


  • Handlebar Stache
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  • Posts: 1686
Re: Home down payment
« Reply #2 on: May 02, 2017, 10:21:25 AM »
If you're on "team don't pay down on the mortgage", just put down 20%.  PMI is a terrible cost of money.  Never worth it, if you have a choice (like borrowing from a "loan shark").