Better to put 5% or 20% down? : r/personalfinance - Reddit

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Better To Put 5% Or 20% Down? : R/personalfinance - Reddit

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Posted by u/pngpng32 - 2 votes and 6 comments

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R/personalfinance On Reddit: Is It Better To Put 20% Down Or 5

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I was trying to do the math to see what was better long term: Putting 20% down thus avoiding pmi Or Putting 5% and then putting that other 15%…

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R/personalfinance On Reddit: Is It Smarter To Put 5% Or 20% Down …

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Generally, one should try and put down 20% to avoid PMI. That being said, if your credit score and income are fantastic, some banks will work with you and waive the PMI. You also have to …

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Should We Buy With 5% Down Now Or Try With 20% Down In Two …

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People are beating their heads against the wall because they didn't buy a couple of years ago with 5% down and instead listened to the misguided pundits that made blanket statements to …

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What Percentage Of Savings Can I Allocate Towards A (1st) Home …

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Jan 15, 2025 · As long as you've done the first 5 steps (i.e. no high interest debt; saving 15% towards retirement; have an emergency fund of 3-6 months of expenses), it's reasonable to …

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Been Working For 5 Years. Should I Feel Like A Dumbass For Picking A ...

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Take that a layer deeper… you’re worried about what was lost… if you’ve been working for 5 years, assuming 100k salary and 20% going to 401k (fir mathing purposes) 5% difference …

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5% Vs 20% House Down Payment – Which Is Better? - B.E.S.T.

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Aug 25, 2021 · Before I answer that question, I need to discuss PMI. A general rule of thumb is to put down 20% so that you avoid PMI. If you’re planning on getting a mortgage and put down …

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R/personalfinance On Reddit: Just Because I CAN Put 20% Down For …

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The rate when I put down 20% was 1/8 higher than the rate when I put 5% down. And the PMI for 5% was only 1/4 point. And the PMI for 5% was only 1/4 point. You could take the 15%, shove …

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Where Should I Invest My Money As A 20 Year Old College Student.

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Dec 24, 2024 · limit my search to r/personalfinance. use the following search parameters to narrow your results: subreddit: ... If you began in January 2020 and put $200 month for 60 …

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Should We Save For A 20% Down Payment? : R/personalfinance

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We technically had 20%, but about half that was a 6 month emergency fund and 5% was for closing costs (many first time buyers are unaware of how much it costs to close on a house- it …

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Have Seen Advice About Putting Down 5% For A Down Payment

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On a $400k house: 5% down = a $2,657 minimum payment @ 7.5% interest. 10% down = a $2,517 minimum payment @ 7.5% interest. When you make a lump payment against the loan …

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Paying Down Mortgage Vs Investing, How Do You Decide Which To …

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May 25, 2024 · Mortgage interest compounds daily. So the 5.85% is effective through out the portion that it stays that way. If ratr goes up or down, then the new rate kicks in right away. So …

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Does It Ever Make Sense To Put More Than 20% Down? : R ... - Reddit

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40% actually gets you a slightly better interest rate than 20%, but the difference is not that much, certainly at the moment when interest rates are still low compared to historical baselines (4.5% …

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Breaking Down The 5% Vs 20% Home Down Payment Question : R

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In the average example, the 20% down payment edged out the 5% down payment. The difference is that the 20% down is FAR less risk and this scenario doesn't factor taxes which would make …

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20% Down On A New Home Purchase Or 5% Down To Leave Cash For …

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5% down is great because you can have money to invest in other areas that can greatly offset the MI. More risk involved. but if you plan on staying in the hone long term and are proficient with …

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Pros And Cons Of Putting 20% Down : R/PersonalFinanceCanada

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Investing that remaining 15% will “ pay the CMHC fee back in 3-4 years if you are returning ~6% a year or more, and you still have a large nest egg/emergency fund, and the lower interest rate …

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ELI5: 5% Down Vs 20% For A First-time Home Buyer - Reddit

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Another point that I haven't seen here, when we got our mortgage we were prepared to put 20% down to avoid CMHC, we talked to our mortgage broker, and the difference in interest rate …

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FAQs about Better to put 5% or 20% down? : r/personalfinance - Reddit Coupon?

What if you put 20% down instead of 5%?

The example assumes you put money you save on the mortgage payment into the market each month. In this case, your mortgage payment is $570 less by putting 20% down instead of 5%. However, many assumptions and variables could change over a 10-year and 30-year time horizon. ...

What if you put 20% down on a house?

You would have a $40,000 higher net worth and have paid $60,000 less in finance costs over 10 years by putting 20% down. This considers your home equity and investment balance. Most people stay in a home for 13.2 years on average, says the National Association of Realtors. They keep mortgages for even less time. ...

Is 5% down a good investment?

The math used to show that 5% down is more beneficial in the long run is a simple scenario: one person pays 5% down for their home and invests the other 15%. Person 2 puts 20% down and invests the extra they save from having smaller mortgage payments. Person 1 has an initial investment of $60,000 and mortgage payments of $1,654. ...

Should I put 20% down if interest is higher than 4%?

Yeah, just put 20% if interest is higher than 4% OR if the 30 year amortization will help you save more each month. Otherwise always put down as low as possible. Yes but how does someone get 20 percent at the same time as 5 percent. You get to 5 percent first. Unless you somehow dont want a home until you have over 100k saved up... ...

Is a 20% down payment better than a 5% down payment?

Your Mortgage Interest is Higher Than Your Investment Return. If this is the case, then a 20% down payment is best. This is due primarily to the fact that a 20% down payment allows you to save more interest than the return you would make investing with a 5% down payment. 3. You Won’t Invest Your Down Payment Savings. ...

What happens if you put 5% down on a house?

Had you put 5% down, you could have liquidated investments or borrowed against them. You lose the home – plus that massive down payment – if you can’t make the payments. Put 5-10% down unless you have large reserves after the 20% down payment and closing costs. What About PMI? Many people don’t like the idea of PMI. ...