He would certainly pay a higher interest rate on the extra borrowed $400K. That is, he’s not going to get the non-jumbo 6 and whatever percent that’s the going rate today. Rather, something like 7 or 8 percent. In the long run, he’d pay more and end up chewing up the principal anyway (or at least most people would).
Also, doubt he had $400k down. Considering transaction costs, it was probably more like $350-$360. I’ll bet his monthly payments (even with the big down) aren’t as low as he’s telling you either.
