On this episode of The Loans Elevated Podcast, Broch speaks about down payments and explains if they make a difference or not. This topic is truly at the root of what loans elevated is all about, creating wealth through real estate and understanding how to properly leverage. Broch states that there isn’t a perfectly linear answer to this question as every situation will have different circumstances and what’s right for one person may not be right for another. So should you put more money down? Broch states that generally, no, you shouldn’t. Broch explains that the fact is on mortgage financing every $1,000 you put down only saves you $5-$5.50.

Broch shares how once you accomplish the “minimum down payment to optimise loan terms”, the down payment doesn’t make a significant difference and there are better places where you could put that extra down payment money. Broch states that you could re-invest that money into paying off other dept or even putting it into other investments. Broch talks you through the benefits of both of these options.

Broch explains how every dollar you chose to withholdfrom the down payment and invest into something else such as your 401K, will be worth about five times more over a fifteen year period by going into your 401K than going down on your house but your house will be worth just as much with or without every extra dollar. Broch states that he favours lower down payments over larger down payments for the majority of cases but encourages you to reach out if you have any questions about your specific circumstances so he can lead you in the best direction with his best advice!

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