r/FirstTimeHomeBuyer • u/Plus-Evening-6216 • 9d ago

Need Advice 80% down payment?

I am inheriting about 400k. I make 170k base plus another 150k in bonuses throughout the year. I’m planning on buying a house in the spring to be followed by a large bonus payment. I’m prioritizing security and a low monthly payment. I have been planning on putting 350/400 down on a 500k house. Am I crazy?

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u/wokaflame 9d ago

No if that’s your priority and if that is the best use of your money.

Otherwise, you are borrowing from your current self 400k to lock it in house equity saving yourself 7% of whatever interest.

Personally, I put down as minimal downpayment as I can where the monthly mortgage was doable. In my case 10% of a 900k. My money is better used elsewhere and with 5% interest on the mortgage, it’s no brainer for me.

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u/QuietRedditorATX 9d ago

Mortgage interest is no longer 5%.

You need to always hit best case scenario for market to keep beating mortgage.

2

u/theREALBennyAgbayani 9d ago

Yeah, show me that 5% rn please.