deposit 5% or 20%? primary residence

1 Reply


I am buying my first home - i'll live in it and have roommates. I have good credit - so i can put down 5% on a conventional loan...but I have enough saved for 20%. I put down a larger deposit? or do I use that extra money to pay off student loans early?  And maybe save up for my next purchase?

Thanks in advance.


I would say do the 5% down and use the rest foe investments. What's the interest rate on your student loans? If it's in the 4-5% or less, I wouldn't pay those down, I would use that money to buy a rental. Student loans are some of the cheapest loans you can get!