PUTTING $100,000 DOWN ON A HOUSE? WATCH THIS FIRST

0 Просмотры

Спасибо! Поделитесь с друзьями!

Вам не понравилось видео. Спасибо за то что поделились своим мнением!

Издатель Jul 19, 2026

Many homebuyers are told that making the largest possible down payment is always the smartest financial decision. While a larger down payment lowers the loan amount, monthly payment, and total scheduled interest, it isn't the only way to reduce borrowing costs. Understanding how principal payments interact with an amortized loan can reveal other strategies worth evaluating.

Consider a $400,000 mortgage at 3% for 30 years. Borrowing $300,000 instead would reduce the monthly payment from about $1,686 to $1,264 and lower the total scheduled interest from roughly $207,000 to $155,000. However, another approach is to close on the $400,000 loan, keep the $100,000 in cash, and then, if appropriate and permitted by the loan terms, make a $100,000 principal payment after the loan is funded. Because the payment immediately reduces the outstanding balance, the loan effectively moves forward on its amortization schedule, causing future interest to be calculated on the lower balance.

The broader lesson is that how and when principal is paid can influence the total cost of a mortgage. Keeping cash available until after closing may also preserve liquidity for emergencies or other opportunities. Whether this approach is better than making a larger down payment depends on the loan terms, lender policies, closing costs, cash needs, and individual financial goals. Carefully comparing both strategies before committing can lead to a more informed borrowing decision.

Get a FREE Savings & Earnings Report! PILLMethod.com Watch & Subscribe to the PILL Method Youtube Channel! https://www.youtube.com/@ThePILLMethodChannel

#Dondaniel #PILLmethod #InterestCancellation #ICE #InterestCancellationExpert #PayOffYourMortgage3to5years #PayOffStudentLoansFaster #ABetterWayToEliminateDebt #OptimizedBudgeting #vanntastic #christyvann #MortgageEducation