Mortgage gurus talk to me

[lilred06]

We’re about to finish our build and convert it to a mortgage. We have $100k we were going to put down on the loan, however after going over numbers with our bank, they hadn’t entered the $100k into the loan as a down payment yet, and we’ve found the payment is obviously higher, but still within the manageable window.

So my question is this…what should we do with the $100k? Is it worth putting down on the payment? Or would it be better to hold it and use it to pay an extra $1000/month for the next 100 months, paying solely toward principle? Or should we feel bad and just send it to Ukraine?

 

[the_great_white]

My name is Ukraine....

 

[Horsehat]

We’re about to finish our build and convert it to a mortgage. We have $100k we were going to put down on the loan, however after going over numbers with our bank, they hadn’t entered the $100k into the loan as a down payment yet, and we’ve found the payment is obviously higher, but still within the manageable window.

So my question is this…what should we do with the $100k? Is it worth putting down on the payment? Or would it be better to hold it and use it to pay an extra $1000/month for the next 100 months, paying solely toward principle? Or should we feel bad and just send it to Ukraine?

If you feel bad just send it to me.
If you don’t have an emergency fund, consider maybe putting half in a cd which will get you about 5% right now and put the rest on your mortgage. Then drop what you saved on the mortgage by putting 50k down into your emergency fund each month.

 

[GeauxLSU]

So my question is this…what should we do with the $100k? Is it worth putting down on the payment? Or would it be better to hold it and use it to pay an extra $1000/month for the next 100 months, paying solely toward principle? Or should we feel bad and just send it to Ukraine?

That makes no financial sense. If you have sufficient rainy day funds, either put it down, (recommended) or invest it elsewhere.

 

[shootsacanon]

1. What Horsehat said about an emergency fund, except instead of a CD, which would penalize an early withdrawal, do a high yield online saving account (currently around 4.5%) somewhere like CapitalOne, so the money is truly liquid if you need it in a true emergency.
2. Any money that you can apply early on in the mortgage saves you a ton of interest over the life of the loan. Like literally a ton. Ask to see the amortization schedule, or punch your numbers into an amortization calculator like the "Karl's Mortgage Calculator" app, and look at breakdown of those early monthly mortgage payments, and how much interest you pay in paying down that first $100k of principle.

 

[trw2094]

Invest it!!!!

 

[Crochet556]

Why not knock 100k off the top of note?

If Ukraine’s not working, then maybe Destiny or Charity…

 

[shootsacanon]

Here’s a quick example. I put in:

$300k loan
6% interest rate
30 year loan
With & without the 100k down payment.

Without the down payment, you’d pay an extra $116k in interest over the life of the loan, in this situation.

 

[rumrunner55]

take the 100k and buy some transferables, refi later

 

[roydamnmercer]

If I had an extra hundred grand sitting around I’d buy some Hunter Biden paintings as investments.