0% Downpay APR 4.2% vs 20% downpay APR 3.8

[Hyun Don Yun]

I have those two options for my first home. I want to start real estate investment ASAP, at the same time, don’t want to give too much money to the bank. If you were me, what would you do?

[Mike Flora]

@Hyun Don Yun if all the other numbers work for you to do no money down then, in my opinion, do no money down ALWAYS!

Example of why, in my opinion, it’s better for no money down.

You buy a home for $200,000.00

You put 20% down, $40,000.00 of your money

Now the market just turned down 20%

Now you just lost $40,000.00 of your money you put down until the market turns back up 20%

Now.......you put nothing down and have $40,000.00 in the bank and the market turned 20%. YOU STILL HAVE $40,000.00 in your bank account to invest in another home at a low market point. The bank lost that money buy not having you put any money down and since your thinking about moving to rent out your house in a couple years, who cares about that small interest rate difference. Your gonna move and your tenants will be paying that soon, not you.

Of course you need to run all numbers on this but NO MONEY DOWN IS THE WAY TO GO!!