Quote:
Originally Posted by polak
Yes I obviously understand that it's so you have more money to pay off loses.
I just think the importance of a big down payment is completely over stated in the price range I'm shopping in.
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I can't speak to your personal situation but for most people the ability to ride out the bubble bursting in an inflated housing market is utterly dependant on the down payment, regardless of the house price.
I suppose you should factor in whether you can afford the same purchase at 6% interest rate, which is not in the least abnormal or high historically, I've dealt with 15% myself. Again assume a 15 or 20 percent value loss of the property at some point that will happen, does it still make sense, and again what's the plan in the event of a job loss.