Hence, my reasoning is either use cash and get its advantages,, or make the minimum DP necessary to avoid mortgage insurance, usually 20%.
Ha
+1
Hence, my reasoning is either use cash and get its advantages,, or make the minimum DP necessary to avoid mortgage insurance, usually 20%.
Ha
What is the reasoning behind this strategy? As I see it, you are either going to have cash negotiating power, or not. A large dp has no effect on that. You are either going to have a mortgage and lien, or not. A large DP has no effect on that. As best I know, the only thing a larger DP gets you is sometimes a slightly better interest rate, and no requirement for mortgage insurance.
Hence, my reasoning is either use cash and get its advantages,, or make the minimum DP necessary to avoid mortgage insurance, usually 20%.
Could you tell me what other concerns you are seeing or responding to
What is the reasoning behind this strategy?
I see. These kinds of things I tend to not undestand.Maybe it's for the psychological benefit of the actor, to help with analysis paralysis (i can't decide which approach is better so I will split the difference). I think a similar issue occurs with DCA.
Several posters have given similar answers- take a loan, but use a large down payment.
What is the reasoning behind this strategy? As I see it, you are either going to have cash negotiating power, or not. A large dp has no effect on that. You are either going to have a mortgage and lien, or not. A large DP has no effect on that. As best I know, the only thing a larger DP gets you is sometimes a slightly better interest rate, and no requirement for mortgage insurance.
Hence, my reasoning is either use cash and get its advantages,, or make the minimum DP necessary to avoid mortgage insurance, usually 20%.
Could you tell me what other concerns you are seeing or responding to?
Ha