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Personal Finance (Not Investing) • Larger downpayment or not ?

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Hello,

Could you please share the pros and cons of doing a significant mortgage downpayment (40-50%) by selling stocks versus doing 20% down and not touching the stocks, in today's time when interest rates are 7%.

Keeping the downpayment low helps if in future the rates go down and one can refinance. However, until that point, 7% interest needs to be still paid.

On the other hand, if a larger downpayment is done, is there a way to still benefit from the possible future reduction of interest rates ? E.g., by doing a HELOC (or something along those lines) if & when interest rates fall ?

Appreciate your inputs.

Statistics: Posted by esipsi — Thu May 30, 2024 1:15 am — Replies 0 — Views 36



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