How a Large Down Payment Can Affect More Than Your Monthly Payment
When buying a home, it is natural to assume that putting as much money down as possible is always the best financial decision. A larger down payment can provide meaningful advantages, but it also affects more than the size of your monthly mortgage payment. Understanding the broader impact can help you decide how much cash makes sense to use at closing. A Larger Down Payment Reduces the Amount You BorrowThe most obvious benefit is a smaller loan balance. Borrowing less generally means a lower principal-and-interest payment and less interest paid over the life of the loan, assuming the other loan…