The are where they need to live has extremely limited rentals available.It is a trade-off. e.g. The borrowing cost is higher with the mortgage compared to the interest one would earn if they invest the money in fixed income for 2-3 years. So, it suggests put more money down so the interest paid is less even when accounting for any interest earned from the investment. But you are trading the liquidity.Hello, my daughter is purchasing a house that they will only live in for 2-3 years. Renting not an option. Would it be better to put the minimum down,20%, or should they put more down, up to 45%? They are paying on student loans and just sold their first home and have $200k in proceeds from the sale. They really want the loans to be paid off.
Thanks!
Also, student loan interest rate needs to be compared with the mortgage rate. Whichever has higher cost that should be paid before the other one.
BTW, I am curious. Why renting is not an option?
Statistics: Posted by AnchorDown — Fri Dec 19, 2025 5:46 am — Replies 21 — Views 1402