Quote:
Originally Posted by cam_wmh
Travis,
What difference in interest over the life of the mortgage/term are you paying between your choosing of 5% vs 15% vs 20%.
Why did you choose the lower down payment?
|
I personally chose the same route that fundmark speaks of. I buy properties based on value. I purchase with 5% down and use my extra cash for other investments.
It takes a year or 2 to have 20% equity in the property assuming you bought based on value and put extra money into your mortgage over the year or 2. Now that you have 20% equity, you go buy property 2 and rent out property 1. Repeat the exact same cycle.
I was forced to put down 10% on a new build I am in right now however I would have taken the 5% option if it was available.
Now this works for certain people - others prefer the safer and less hands on approach. There is no right or wrong way which this thread seems to want to answer. It is all about the individual and what works for them.