Reply to When million-dollar-plus homes are purchased, do people put more than 20% down?

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Reply to "When million-dollar-plus homes are purchased, do people put more than 20% down?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Not always.  We were planning to put 10% down but got a loan that allowed us to put 5% down.  My husband was nervous that the economy was going to be such that we would not be getting raises in the near future so we decided to keep the money in cash.  Later, as our house value appreciated, and we felt a bit more comfortable we were able to refinance both mortgages into a single 20 yr fixed and put in more of our cash.  Of course this was only done b/c we had sufficient cash.[/quote]

I don't understand your logic. Seems like you would want to put more down to keep the mortgage payments low. We wanted to put more down so that if we went down to one salary, we could still afford the mortgage. We were able to do about 50% down.[/quote]

You're the illogical one. Real estate is a leveraged investment for a reason. Under pp's scenario, they kept their cash. Which do you think is more useful in the event of a job loss: Ready access to cash or a lower mortgage payment?

Who wants to lock up their cash in an illiquid investment like a house?[/quote]

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