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.

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Joe Piscitelli
Coldwell Banker
171 N. Broad Street
Milford, CT 06460
203-982-3511
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As one of America's NUMBER1EXPERTS™ on the shoreline area of Branford, Guilford, Madison and Milford, Joe has listed and sold more upper tier, unique and waterfront homes, then any agent on the shoreline. His love for the waterfront developed over fifteen years ago, when he began swimming in Long Island Sound every day at dawn, year round. A morning habit that continually refreshes Joe’s deep connection to this dynamic and wonderful area, it is a daily reminder of his great good fortune in living within and representing one of the loveliest areas on the East Coast. With many miles of beaches, coves, rivers, outlets, rock outcroppings and abundant wildlife, this “boater's paradise” offers just about every dream location imaginable. In the forefront of the real estate market in this area, Joe is often the first person notified of upcoming properties, and his clients benefit, an extremely important asset for potential buyers or sellers. Today's technological world moves rapidly, and there, again, Joe is the NUMBER1EXPERT, superlatively equipped to handle all of your real estate needs. Call or e-mail him today!

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