Mortgage Down Payment FAQ: 5% or 10%
#100words (Or Less) – Too Long To Break Even
Sometimes you are better off keeping your own cash in your own checking account.
Like Tuesday’s theme, maybe slugging your entire life savings into your down payment is not the most prudent plan.
For example, let’s examine the difference between a 5% and 10% down payment on a $200,000 purchase price.
That’s a $10,000 swing in cash to close.
The difference in your payment is $48.46 per month.
It would take you 206 months before you “break even”. Or 17 years.
That’s too long before I start to “win” for putting more down.
I’d keep the cash. But that’s just me.
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