Reply to Is it dumb to put most of our savings into a house?

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[quote=Anonymous][quote=Anonymous]I would try to keep most of it liquid for an emergency fund, retirement and college (prioritize in that order). [b]$100k at 40 isn't very much unless your income is low (< $30k)[/b]. [/quote]

This statement is ridiculous.  First of all, someone making under $30k and living in the DC metro area is going to have a very difficult time saving $100k -- even by 40.  And all of the people who are going to chime in "i make $30k and have saved a million" are outliers.  Do the research.  Most Americans don't have $100k saved by 40, even those making well over $30k HHI.

That said, I think it's unwise to deplete savings for a house.  Money is cheap right now.  Keep the money in the bank and get a low-interest loan.  Even if you pay PMI on a conventional loan, it's actually not too bad (much lower than the PMI on FHA loans), and the interest rates are so low, that the PMI doesn't make much of a difference.  Put the savings in a high interest savings account where it is still liquid but maybe earning a little more than a regular interest account.  Or consult a financial planner about other liquid investment strategies for the money.

Just my humble opinion.[/quote]

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