Moving out of city. Is it dumb to only put 10% down on a $750,000 house? I could put down 20% but kind of want to keep a large amount of cash in the bank (100k) or market. Thoughts?

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Can I borrow a few hundies?

Also, cash is important now. Think about how long it would take you to save the difference, and decide if locking that money in your house is worth not having it as security.

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I say put down 20%. I can’t imagine you’ll make more money per month investing the money then the amount you’ll pay on PMI.

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20% down. $320 a month is way more money than you’ll make in the bank on $75K and seems like an easy decision. It’s also just the big boy responsible thing to do...

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Apologies for my vapid comment, Sir MD, but I think you are still missing my point. I hope, for your clients’ sake, that you don’t sacrifice independent thought and critical thinking for “experience” in your day job.

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So the smart math would be to put down 20% since you’d need ~5% after tax risk adjusted return to make the 10% worthwhile.

I’d put down 10%. Cash is king and I’d invest the 75k in upgrading the house (hopefully increasing its market value) and then refi to get out of PMI

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How much is PMI if you don’t put 20% down? Your truth in lending statement should have the “all in rate” which includes closing costs and PMI. If you’re comfortable with that rate, then I’d go with 10%.

PMI was about $130...the all in increase in payment was about $320...not terrible to lock up $75k in cash in a house

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You might be better off putting down 20% and taking out a home equity loan if you want cash now.

^ this makes sense. You can get the casing of needed you only pay interest when you draw down the money for the 1st years generally.

Although you want to keep the cash and invest it, how much will that $75k cost you in interest over the life of the loan, pmi. There’s go guarantee you’ll make money. Also, have you factored in your emergency funds after buying the house and the other costs that you’ll have?

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Not answering your question but does your SO work as well? Considering buying a home in a similar price point and its stressing me out. Obv there are a lot of variables and everyone's situation is diff but would be nice to benchmark against another SM.

Nah she don’t work any more ... I’ve been doin some soul searching I might just buy a 500k fixer upper

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