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Let assume the house is $600k and the interest rate is 3.5% fixed for 30 years

Scenario #1 - 20% Down

$120k down payment

$2,155 / monthly payment

$296k in interest over the life of the loan

Scenario #2 - 30% Down

$180k down payment

$1,885 / month payment

$256k in interest over the life of the loan

Difference:

$60k more in downpayment

$270 less / month payment

$37k less interest over the life of the loan.

So if I take that $60k and invest it in the stock market and get a 6% rate of return over 30 years that comes out to $285k of interest, does that sound right? So does that mean it doesn't make sense to do the 30% down? How do I factor in the higher monthly payment to the calculation? That's $3,250 less per year in cash flow. Am I missing something obvious?



Submitted May 05, 2020 at 04:02PM by emotion_chip https://ift.tt/2yzkGtU

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