Home Down Payment Strategy Help

[chicagoafdb]

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

[pichhipullayya]

34 minutes ago, chicagoafdb said:

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

@csrcsr DB guide

[yemdoing]

42 minutes ago, chicagoafdb said:

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

with high interest rates... I think 200k down payment is not bad. 

Pooling sanvings ante is the money just sitting in savings account ? Or they tied up in some other investments like stocks/crypto/401/IRA gatra ?

[chicagoafdb]

1 minute ago, yemdoing said:

with high interest rates... I think 200k down payment is not bad. 

Pooling sanvings ante is the money just sitting in savings account ? Or they tied up in some other investments like stocks/crypto/401/IRA gatra ?

Sitting in Savings. not touching 401k. been saving for home down payment. downsized my budget to my affordability. 

[chicagoafdb]

11 minutes ago, pichhipullayya said:

@csrcsr DB guide

@csrcsr navvindi chaalu koncham cheppu only immigration kaadu.

[csrcsr]

2 minutes ago, chicagoafdb said:

@csrcsr navvindi chaalu koncham cheppu only immigration kaadu.

Naaku a index Funds atla teliyadu only 401 k max out , no idea , I suggest go with 20% paisalu Unte investment ki emi takva unayi ovaro okaru chrptaru, or 15 down chesiinko 15 inko rental income ki pettu anna if u can manage real estate low lo undi 

[yemdoing]

13 minutes ago, chicagoafdb said:

Sitting in Savings. not touching 401k. been saving for home down payment. downsized my budget to my affordability. 

then go for it... house future lo value tagge risks unnayi just like any other asset. Keep that in mind.

[dalapathi]

39 minutes ago, csrcsr said:

Naaku a index Funds atla teliyadu only 401 k max out , no idea , I suggest go with 20% paisalu Unte investment ki emi takva unayi ovaro okaru chrptaru, or 15 down chesiinko 15 inko rental income ki pettu anna if u can manage real estate low lo undi 

😳

[pandu123b]

do 5% down and save rest in a5% CD

back up/reserve money in case of emergency or recession etc..

[appaji_pesarattu]

11 minutes ago, dalapathi said:

😳

@csrcsr anna dialogues vintunte appudu appudu ADBUTHAM

[csrcsr]

8 minutes ago, appaji_pesarattu said:

@csrcsr anna dialogues vintunte appudu appudu ADBUTHAM

rental income anna ekada takva unte akada tisukovochu kada rates padayi kada no ?

[Pandubabu]

2 hours ago, chicagoafdb said:

Home price is around 600K. Need help with down payment strategy.

Builder is offering around 15-18K Buy down options. I can do 20% or more. I am thinking to do 200K, so that monthly EMI bit less. pooling almost my savings.

As I read online they suggest not to do and divert to investments. With these interest rates, what is best, looking for suggestions.

I am very bad at investments, Lost money at India ( bad ) investments, bit with stocks here. I am not sure putting $$ in Index funds will be better?

@veerigadu @ForEverJava @Complex @Thokkalee

Very simple bhayya .. 7% interst rate .. there are no investments that give 7% guaranteed return .. so not a bad idea to pay 20% down. 

However make sure you have 6 months emergency fund .

[Pandubabu]

1 hour ago, csrcsr said:

Naaku a index Funds atla teliyadu only 401 k max out , no idea , I suggest go with 20% paisalu Unte investment ki emi takva unayi ovaro okaru chrptaru, or 15 down chesiinko 15 inko rental income ki pettu anna if u can manage real estate low lo undi 

401k max out ok , aa 401k dhentlo investing oo chusko, some companies just invest entirely in their own company.  Appudu aaku naaki pothav if company does not perform 

[Complex]

This is up to you.. your balance between risk and safety.

you can always try to make money by investing but that comes with risk.

I hope you have enough cash for closing costs , new home furniture ,emergency funds and at least 6 months of payments  as a backup after putting 20% down.

I like lower monthly payments with 20% down. 

Try to talk with your lender and ask him to create sheets with various scenarios like putting 10% down, 15% down, 20% down. See the difference on monthly payments and closing costs. Now a days PMI has became very cheaper, most of the cases with above 10% down , its less than $75 with good score.

Its mostly on your financial comfort level.

 

 

[csrcsr]

6 minutes ago, Pandubabu said:

401k max out ok , aa 401k dhentlo investing oo chusko, some companies just invest entirely in their own company.  Appudu aaku naaki pothav if company does not perform 

no there are different plans edo medium elagu monna market lo sagam poyindi