Comments on: 20% Down Payment: Just Do It! http://www.fulldisclosurefinance.com/2008/01/07/20-down-payment-just-do-it/ An unscripted look into our investing journey Fri, 15 Jan 2010 10:49:46 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Justin http://www.fulldisclosurefinance.com/2008/01/07/20-down-payment-just-do-it/comment-page-1/#comment-17 Justin Fri, 11 Jan 2008 04:12:18 +0000 http://www.fulldisclosurefinance.com/2008/01/07/20-down-payment-just-do-it/#comment-17 Yeah, it is possible to get an increased rate of return with 5% down. You can't get the insurance premium back necessarily. In my example it would take over 1 year of operation to get it back. In a long term buy and hold scenario, it is likely fine to put down 5% as long as you have positive cash flow. In my case I have bought and sold within 5 months, so the mortgage insurance is a big hit for me because I only put 5% down. Everyone should do their own analysis based on selling short term or long term, but I wanted to make everyone aware of the significance because I underestimated it for sure. Yeah, it is possible to get an increased rate of return with 5% down.

You can’t get the insurance premium back necessarily. In my example it would take over 1 year of operation to get it back.

In a long term buy and hold scenario, it is likely fine to put down 5% as long as you have positive cash flow.

In my case I have bought and sold within 5 months, so the mortgage insurance is a big hit for me because I only put 5% down.

Everyone should do their own analysis based on selling short term or long term, but I wanted to make everyone aware of the significance because I underestimated it for sure.

]]> By: Andrew http://www.fulldisclosurefinance.com/2008/01/07/20-down-payment-just-do-it/comment-page-1/#comment-16 Andrew Wed, 09 Jan 2008 03:07:51 +0000 http://www.fulldisclosurefinance.com/2008/01/07/20-down-payment-just-do-it/#comment-16 Flutes quick question. Is there a situation where the increased rate of return with the 5% down payment comes out ahead of putting down 20%? Is there a length of time for holding the investment where you get the insurance premium back? Flutes quick question. Is there a situation where the increased rate of return with the 5% down payment comes out ahead of putting down 20%? Is there a length of time for holding the investment where you get the insurance premium back?

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