Let’s talk home ownership today, shall we? I know it isn’t for everyone, but I’m going to assume the majority of you already (or plan to) own a home. If you have no intentions of living the dream, then feel free to skip today’s article and laugh at what happens when you give two women exercise balls…
I know, it’s probably going to be really hard reading the rest of this article with that silly clip playing over and over, but do your best to focus.
Girl Ninja and I have a plan to save $100,000 before we look to towards home ownership. Don’t ask me how or why I came up with that figure, ’cause I wont be able to tell ya (I was probably drunk or something).
Yes, we plan to have a $100K in the bank, but that doesn’t necessarily mean we will use all of it as our down payment. Let’s say we buy a $300,000 house. We could put down $60K (20%) to avoid PMI. We could put $0 down and finance 100% of the cost, thus keeping our cash liquid. Or we could get crazy and use all $100K and start off with some pretty solid equity. I’m convinced options are a good thing, and a hundred grand gives me a heck of a lot of options.
What we end up putting down will probably depend on a few key factors…
1) Price of the home
2) Interest rate on mortgage
3) How much renovating would we have to do
4) How much cash do we want to keep
What works for one person, may not work for the other, so today I ask… How did you (or will you) save for your first place? Are you putting down 20% no matter what? Would you ever put 50% or more down? Anyone plan to finance as much of the purchase as possible?