We're about to purchase a home valued for $370k and are trying to weigh our different options when it comes to the down payment.
Our current financial situation:
- Household income of ~$180k
- About $115k cash in bank
- About $100k in retirement funds
- Credit scores in the 800s
- No debt
The house is a new construction townhome in a rapidly growing section of northern Virginia. Homes in our immediate neighborhood will continue to be built for close to two years after we move in and we expect asking prices for those new units to increase as time goes on, which in theory should raise the value of each home in the neighborhood (even if only slightly). The builder is offering $10k towards closing costs. We believe the HOA will be about $80/month.
Technically we can afford to put 20% down. Is that advisable in this situation? It seems like most people say the potential gains in the market would probably outweigh the savings of a 20% vs 3.5% down payment, but I feel like the peace of mind and comfort of a lower monthly payment is something that shouldn't be neglected.
I know there really isn't a correct answer, but what would you do in this situation if you were us?
Submitted May 08, 2019 at 06:32AM by fittingaway http://bit.ly/2J6FXyT
