jbyoun1990 wrote:Kosmo wrote:Does "100% down payment" mean you're buying the house in cash? Or do you mean to take 100% of your savings to make a 20% down payment on the house?
I'm inclined to say yes to the first case but no to the second.
100% cash, which would also be 100% of the savings, with the exceptions I mentioned.
So... basically like only buying what you can afford
steadyeddy wrote:Most of the responses on this site are geared toward high earners. My wife and I can only dream of maxing out all our tax advantaged space (more than $46k is available next year) and must necessarily reduce possible contributions to retirement accounts in order to save a down payment. It's ludicrous to think that anyone who cannot save above and beyond $46k in one year cannot afford to buy a home.
All that said, I would not forgo all retirement savings to buy a house for cash.
jbyoun1990 wrote:Would you use all of your accumlated savings to pay 100% down-payment on a first-time house?
englishgirl wrote:I would use all of my taxable savings, excluding my emergency fund, if I could buy a house for cash.
But I wouldn't use anything from any IRAs or other retirement accounts.
nedsaid wrote:I would not all my savings for a first-time down-payment. This is the definition of house poor.
CykoNut wrote:One of the things I believe in is to NOT to use your emotions when dealing with your finances. I'm new to Booglehead but been reading alot of the forum, and my understanding is the the majority here agree with that too, correct?
CykoNut wrote:One of the things I believe in is to NOT to use your emotions when dealing with your finances.
jbyoun1990 wrote:I totally agree that we shouldn't make financial decisions based on emotions but I think that applies more to things like buying a nicer unaffordable house because you love it. For this scenario, I think the possible financial gain I could make by taking out a bigger mortgage, rather than paying most if it, is not enough for me. In other words, the possible gain is not substantial enough to weigh over the comfort of owning a home. That is how I feel NOW anyways... but I have changed my position too many times, so I may disagree with myself maybe 5 years down the road
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