Home Buying: What Do You Want to Part With?

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What do you want to part with?

When you’re buying a home, it’s important to make financial decisions right at the start. This is especially important when it comes to determining your down payment.

Have an honest conversation with yourself, your lender, and your broker to understand what you’re comfortable parting with. Some want to put less down and keep more cash in reserves. Others want to avoid any mortgage insurance (PMI) and have the funds to put down 20% with enough still in reserves to feel comfortable. Ultimately, it’s up to you.


When you’re looking to buy your home, your condo, your new apartment building, take a look at your resources.

What do you really want to “part with” to buy something?

Are you better off parting with as little money as possible?

Three-percent down and going FHA up to $450,000.

And that way you’re going to have certainly a little higher interest rate and some PMI tagged on

But, you’re going to have more cash on reserves.

Or, are you better off putting twenty-percent down and avoiding any form of PMI and having more equity in your home?

It’s really what do you have to work with that’s real

What do you want to part with

And, interest rates are so low that it doesn’t really matter even if you are going to pay a little more for your money if you’re putting less down.

I believe that you have an honest conversation with yourself, your lender, and your broker to say

“You know what, I feel good about putting X down and let’s work backwards”.

What do I really want to “part with” to then get me in the door?