So Veeky Forums I currently have $100k for a house. Is it smarter to put a $100k down deposit on a house and then pay over top the monthly payments or is it smarter to not put any money down and then make a $100k payment the first day?
On the one hand the deposit will make my payments lower so I can pay more over top for principle every month. The downside is that I will have the 95/5 split for regular payments.
For the other hand, if I put a $100k payment I will be further along on principle payments so it should be around 50 to 60/50 to 40. The downside is that my monthly payments will be higher meaning if I fall on hard times I will have to tone down my lifestyle.
Its a VA loan so you are not required to have a downpayment. I also have a 745 credit score.
So Veeky Forums I currently have $100k for a house...
house will cost you money for years to come. buy 100k in btc and hodl.
Lose 100k on shitcoins.
Sell the house, invest in crypto.
just buy a 100k house dood. Honestly I don't fuck with moneylenders. I'd rather pay rent.
Nice, just put 100k down on a house
this
Buy as many interest points as possible, then use the rest as down payment.
Do not put 0 down if you don't have to.
nice house were is it at?
You probably want to validate that the mortgage company will let you post a 100k payment (nice) like you are expecting to. They might make you recast the loan and recalculate the payments instead of just applying it to principal and calling it a day.
100k deposit. Pay over every month.
If you contribute the same over the life of the loan (duration and amount) it's functionally the same. However, this approach will lower your required minimum payment. The positive of that is that 1) if you hit a tough time, you're not as burdened, and 2) it will give you a better credit/lending rate since your monthly debts will show less on reports.
t. been in mortgage half my life
Do you not see we are in the new era gold rush? Fucking boomers when will they learn
Renting will also cost me money for years to come.
Thats not the house I am planning to buy. It will depend on the answer to my question. Im looking at houses north of Denver.
I will keep this in mind but I remember from college that there is an equation that will tell you how long it will take in both situations and the amount you will pay in interest.
For a VA loan the most you can get is 1 or 2 points. The interest rate is already over half a percent lower than normal.
This is a horrible way to look at credit. Every dollar you put into rent is gone forever. Once you pay off your house you are only paying taxes and insurance which is around 1400 a year. Your house will hold its value if you treat it right and increase if you make it more comfortable for yourself with a new stove new floor new fridge etc. You can claim all of this on taxes too. A trailer is fine if you dont care about creature comforts but getting more isnt a bad self investment.
> I will keep this in mind but I remember from college that there is an equation that will tell you how long it will take in both situations and the amount you will pay in interest.
Interest on the payment is based on outstanding loan balance. So based on these two scenerios:
> No deposit, pay 100k on your first repayment
> 100k deposit, pay minimum on your first repayment
Your interest payment on payment #2+ will be the same. However, your minimum payment would be lower in scenerio 1 which would make overpayment for prinical push-down easier to sustain.
This all assuming you have no prepayment penalities. Also, if you have too small of a initial down payment, you'll have to pay PMI every month which is just burning money.
to your specific question: neither
1 - use ~$80k as down payment, since the more equity you have, the lower your rate. Plus. if you have under 20% (sometimes less) you will have to pay mortgage insurance, which is just wasted money. AND - most mortgages require you to pay a closing fee which is based on your total loan, so lower loan amount = less closing fee.
2 - keep the rest on hand for emergencies
NOT to your question:
1 - buy a duplex and live in half - its the best of both worlds
2 - you can finance at primary residence rates, which are lower tan investment rates.
3 - you can usually charge rent = 60-75% of your PITI
4 - your utilities will be lower
5 - you can deduct 50% of the house values over 27 years from your taxes ($300k house = $150k/27 = ~$5,000 deduction = ~$1500 off your taxes)
6 - as time goes on, your mortgage stays the same, but rent goes up, so you pay less mortgage out of pocket every year.
7 - when you move, you can rent both units and have positive cashfllow
8 = you can deduct all or a portion of repairs
put down 20% and get a comfy 30-year fixed loan
>Moot said we could have 1 thread that wasn't crypto
Interdasting question user. It really depends on the following:
-Total price of the house
-area (will it keep going up?)
-how long do you want to hold it? 2 years? 10 years? Until death?
Wait. I understand your question I think. I would just do a smaller down payment and pre-pay more. What is the 95/5 split you are talking about for regular payments?
For appreciating assets, put down as little as you can. Pay in full for depreciating assets.
Yesss goyim, buy real estate when the crash is < 3 years away. Dont buy that magical internet money, its all a scamm
>real estate crash
>hyperinflation
pick 1. Think about what they would prefer.
VA loans do not have any penalties for not making a down payment. No loan insurance is required either.
This post is in line with my original understanding though. This is probably what I will do unless otherwise convinced.
Why would either matter? Once you start a loan your price is set regardless. From then on you are merely trying to minimize interest payments from my understanding.
Your monthly payments start off a majorty going towards interest payments with a small portion going towards principal. This slowly switches as you pay off the loan meaning at the halfway point you will own way less than half of your house but will ramp up near the end of your loan payments. This is moved forward if you make principal payments earlier.
Real estate always has to stabalize. Otherwise society will collapse. Thats why we had to use government funds to pay off the debts of banks who loaned to toxic clients.
Do not buy a house, it is a liability.
buy 21 bitcoin with the money, in 10 years but a house with 1 bitcoin