LSAMPLE ANSWERILLUSTRATIVE
THE SHORT ANSWER
I’d choose 15% down, not 20%. You’d keep $48,000 after closing, or six months of your $8,000 spending. Putting another $35,000 into the house leaves just $13,000 in cash. Keep the all-in housing payment within $4,800 a month to preserve your retirement contributions.
KEY NUMBERS
Home price$700,000
Down payment$105,000
Cash after closing$48,000
WHAT MATTERS
- Putting 20% down lowers the payment but leaves too little cash for repairs or a job interruption.
- Property taxes, insurance, and maintenance add more to the monthly cost than the mortgage quote alone shows.
- The purchase works without changing retirement contributions, but it reduces room for another large expense in the next two years.
POSSIBLE NEXT STEPS
- Set a $4,800 ceiling for mortgage, taxes, insurance, and homeowners association fees combined.
- Keep at least $45,000 outside the down payment and closing budget.
- Run the same plan with childcare or parental leave included if either is likely soon.