Everything your mom and dad taught you about putting more money d

Everything your mom and dad taught you about putting more money d

Everything your mom and dad taught you about putting more money down for a down payment...THROW IT OUT THE WINDOW! It's not the down payment that you need, it's the cash flow that you need to make the monthly payments. FOR EXAMPLE... If you put $21,000 down (5%) on a $399,000 loan amount, your payment is going to be $2,534. If you decide to wait another year to save an extra $10,000 to instead put $31,000 (7.38%) on your down payment, the difference in your payment will only be $52.56!! Is it worth waiting a year to save $52.56?? My advice, instead of saving for a bigger down payment, put 5% down and use the extra money to pay off more debt! To get more home, you need to pay off debt.

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