Am I better off with a larger down payment? A smaller one will leave me with more cash on hand and a bigger tax break.
Answers | 2
Couple things to consider; would the larger mortgage payment constrain your housing budget and can you avoid mortgage insurance with your larger down payment. All else being equal you may want to keep your cash. Once you put the money into the house it will be there until you sell or cash it out; it cannot earn a return for you. If you retain the cash it can earn a return when invested.