Unless you have another use in mind for the cash, I think it is reasonable to increase the monthly payment. Obviously still keep a good emergency fund to cover the inevitable major repairs that will happen as soon as you move in.
Increasing the down payment gives you the guaranteed 6.99% return (just like paying extra on principle at any point in the term) but also reduces the monthly payment for the duration of the loan. Those two things combined make it a good move in my mind unless you can reasonably expect to find a guaranteed return that is higher elsewhere, which is very unlikely in the typical investments discussed here.
Enjoy the new home. Best of luck to you.
Increasing the down payment gives you the guaranteed 6.99% return (just like paying extra on principle at any point in the term) but also reduces the monthly payment for the duration of the loan. Those two things combined make it a good move in my mind unless you can reasonably expect to find a guaranteed return that is higher elsewhere, which is very unlikely in the typical investments discussed here.
Enjoy the new home. Best of luck to you.
Statistics: Posted by ercolau — Sat Jul 06, 2024 10:39 pm