This is, without a doubt, one of the (if not the) biggest question people ask for our thoughts on. There are two lines of thought here:
1. Put as much down as possible to keep equity in the house and lower the payment.
2. Put as little down as possible, for various reasons.
Regarding putting as much down as possible, the advantage of this is you have a good amount of equity in your house and the payment is, consequently, lower. However, the other camp would argue that this is the negative. The reason is your return on your equity is 0%; you make nothing on your equity. Plus, putting down a bunch of money will not have an equally big difference on your payment.
The other camp of holding onto your money would say that you are better off having cash, investing it somehow and making a return on that money. Plus, not putting that money down generally does not help your payment that much.
The bottom line is you must analyze these things. And even if you are not comfortable or have thought about not putting as much down (because this is always the side people don’t think of) then you still must analyze it. Right now, especially, cash is king. People are struggling not because they have so much equity in their house. They are struggling because they have no cash reserves; that is what is killing people. So we often advise people, right now, to hold onto your cash. There are many angles that need to be analyzed on this, so call us and let’s talk it through.