Does it make sense to put more than 20% down with rising interest rates?

Home prices in my area have reached a level where the monthly is unaffordable at a 20% down payment (~500k is the price of a starter home, my income is 120k). I do have sufficient cash to put 30%, or even close to 40% down, which makes the monthly payment manageable (but still expensive compared to this time last year).

As an investment, does this make sense? if the mortgage rate is 5.5%, and the stock market returns around 8% on average, it is not too much of a difference.

Conventional wisdom says to put as little down as possible and invest the rest in the market , but I wonder if this logic holds in the face of rising rates.

submitted by /u/raji4858
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Home prices in my area have reached a level where the monthly is unaffordable at a 20% down payment (~500k is the price of a starter home, my income is 120k). I do have sufficient cash to put 30%, or even close to 40% down, which makes the monthly payment manageable (but still expensive compared to this time last year). As an investment, does this make sense? if the mortgage rate is 5.5%, and the stock market returns around 8% on average, it is not too much of a difference. Conventional wisdom says to put as little down as possible and invest the rest in the market , but I wonder if this logic holds in the face of rising rates. submitted by /u/raji4858 [link] [comments]

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