08/25/2026
Putting more money down doesn’t always mean a lower monthly payment.
A recent buyer planned to put 20% down on a $650,000 home.
But after comparing the numbers, we found that using less money for the down payment and some of those funds to buy down the interest rate resulted in a lower monthly payment.
Originally, they were going to put down $130,000 and have a payment of $3,416.
INSTEAD, they put down $65,000 and used $15,000 to buy down the interest rate which gave them a monthly payment of $3,386 AND they kept $50,000 in the bank.
The takeaway: Don’t automatically assume the biggest down payment is the best strategy.
Before you decide how much to put down, compare your options. The right mortgage structure can make a BIG difference.
Follow for more knowledge the traditional banks don’t want you to know
Every borrower and loan scenario is different. Rates, costs and eligibility vary.
