[quote=bob2007]I would agree with the 20% down. As taxes go up, you will need to reduce your taxable income as much as possible. Also, many lenders will allow you to reamitorize once (I did), so if you later decide to pay down a large part of the loan and reduce payments if your investments aren’t doing as good. I did this when I got nervous before the large drop in stocks a few years back. House has gone down a bit too, but not as much as the investments would have, plus I’m not worried about the payment anymore.[/quote]
I’ve often questioned the wisdom of paying a dollar in interest in order to save 30-40 cents in taxes.
Am I missing something?
SDR made some excellent points with respect to timing of your purchase and what’s going on in the bond market, and greater economy, at that time.
SK in CV also gave good advice regarding your assumed ROI on investments vs. the “guaranteed” return if you use cash and avoid the mortgage origination and interests costs. IMHO, if you’re getting 7%, there’s a good chance you’re taking some substantial risks (if you doubt this, just as the people who manage those pesky pension funds). Consider your risk tolerance at different stages of your life, and make a very conservative estimate for future returns at the time of purchase.
