Advice on buying a million dolloar house, please

[SD Realtor]

I would definitely agree with SK on this one. When you make the decision to buy, you should study the current rates with regards to the historical lows we have seen. If they are still at or near those low levels I would suggest to finance the home if you feel you can make a better return on the balance of the loan. Which I would imagine you can if we are going to be in an escalating rate environment down the road. Look back at the 80s where you could get muni bonds with double digit returns. Then again, if you make the purchase in the future and if rates are much higher at that time, you could see a combination of price drops and higher credit costs that would indicate a more heavily weighted downpayment. In general it is a question that is hard to answer until you are ready to pull the trigger and then what your personal thoughts are on the direction of long term yields.

[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.

[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.

[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.

[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.

[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.

[ocrenter]

I vote for the 20% as well.

You’ll have the liquidity to invest. And you’ll have the tax shelter of the mortgage interest.

of course, SDR is right, you are talking about the future and several things could change. The interest rate may go up, if so, you’ll be better off increasing your down payment. In addition, the mortgage interest deduction in its current form will likely change. There will likely be a cap of some type, either in % or in total amount. That may lead you to want to pay more down as well.

[ocrenter]

I vote for the 20% as well.

You’ll have the liquidity to invest. And you’ll have the tax shelter of the mortgage interest.

of course, SDR is right, you are talking about the future and several things could change. The interest rate may go up, if so, you’ll be better off increasing your down payment. In addition, the mortgage interest deduction in its current form will likely change. There will likely be a cap of some type, either in % or in total amount. That may lead you to want to pay more down as well.

[ocrenter]

I vote for the 20% as well.

You’ll have the liquidity to invest. And you’ll have the tax shelter of the mortgage interest.

of course, SDR is right, you are talking about the future and several things could change. The interest rate may go up, if so, you’ll be better off increasing your down payment. In addition, the mortgage interest deduction in its current form will likely change. There will likely be a cap of some type, either in % or in total amount. That may lead you to want to pay more down as well.

[ocrenter]

I vote for the 20% as well.

You’ll have the liquidity to invest. And you’ll have the tax shelter of the mortgage interest.

of course, SDR is right, you are talking about the future and several things could change. The interest rate may go up, if so, you’ll be better off increasing your down payment. In addition, the mortgage interest deduction in its current form will likely change. There will likely be a cap of some type, either in % or in total amount. That may lead you to want to pay more down as well.

[ocrenter]

I vote for the 20% as well.

You’ll have the liquidity to invest. And you’ll have the tax shelter of the mortgage interest.

of course, SDR is right, you are talking about the future and several things could change. The interest rate may go up, if so, you’ll be better off increasing your down payment. In addition, the mortgage interest deduction in its current form will likely change. There will likely be a cap of some type, either in % or in total amount. That may lead you to want to pay more down as well.

[masayako]

desmond,
It’s not my intention to show off. I genuinely ask for advice. If you are envy or somehow feel offended, please just don’t reply. Piggington is always a place for friendly advice, not for stupid comments.

[masayako]

desmond,
It’s not my intention to show off. I genuinely ask for advice. If you are envy or somehow feel offended, please just don’t reply. Piggington is always a place for friendly advice, not for stupid comments.

[masayako]

desmond,
It’s not my intention to show off. I genuinely ask for advice. If you are envy or somehow feel offended, please just don’t reply. Piggington is always a place for friendly advice, not for stupid comments.

[masayako]

desmond,
It’s not my intention to show off. I genuinely ask for advice. If you are envy or somehow feel offended, please just don’t reply. Piggington is always a place for friendly advice, not for stupid comments.

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