Ideal down payment for new house
March 19, 2011 11:32 AM Subscribe
Am contemplating selling current house and buying a new one, and wondering what's the best approach: 1.) Make the minimum down payment, and use profit from home sale to supplement now larger home payments (also getting the larger mortgage interest deduction. Or 2.) Plow as much of the profit from the home sale into the new home, thus having no cushion but having a smaller mortgage. I've always thought it was best to pay as little interest as possible, but then again, one hears you should try not to tie all up your money in an asset, etc. Thoughts? Anyone seen a spreadsheet breakdown on this? Or maybe there's an easy answer staring me right in the face.