Perhaps no single decision in a real estate purchase has more variables than "How much money do I put down?" Conventional wisdom centers around either putting down as much as you can or as little as the lender allows.

If you put down a large payment, you get some leverage with the lender, such as little or no mortgage insurance, a good equity position, and perhaps a preferred mortgage deal. You will also have lower mortgage payments. One potential disadvantage of a large down payment is that you will be using after-tax dollars on which you could be earning interest. You will also have less tax-deductible interest.

When you buy a home with a low down payment, you will have more tax deductible interest, and your investment value percentage will increase faster. You will have little equity at the outset, and your monthly mortgage payments (and perhaps your interest) will be higher. However, you will also keep more of your own money in hand to potentially earn more interest in other investments.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Ellen Seifts
Prudential CT Realty
Phone: 860-676-3909
Fax: 860-674-0033
Email: ellenseifts@NUMBER1EXPERT.com

Ellen Seifts is the NUMBER ONE AGENT in the Farmington Valley (Avon, Simsbury, Farmington, Canton, Burlington) and West Hartford, also consistently in the top five in the entire state of Connecticut and top 1% Nationally! With over twenty five years of experience, she has an outstanding track record with "Excellent" reviews from transactions and generous assistance above and beyond the norm! Ellen has won numerous awards year after year not only for Top Producer, but also for Customer Service. Her quality of service is proven out by the fact that clients stay with Ellen year after year, and look for her asistance in relocating a second time and in some cases a third time! You too, can join her long list of satisfied clients!Prudential Connecticut Realty is an independently owned and operated member of The Prudential Real Estate Affiliates Inc., and Prudential is a service mark of The Prudential Insurance Company of America.

www.ellenseifts.com is brought to you by Ellen Seifts
NUMBER1EXPERT™ in real estate for Avon, Farmington, Simsbury and Canton, Connecticut (The Farmington Valley), Connecticut

Read Ellen Seifts' Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge