Our plan is to purchase a ~$1.5MM home in the near future with a 30-year-fixed rate loan at ~2.75%. I'm torn on how much to put down (hence, the unnecessarily large cash position that has been sitting on the sidelines for the last few months). We hope this will be at least a 10 year, if not 20+ year, home.
Of course, I think we could beat 2.75% in the market over a decade or two but a $1.2MM loan also feels hefty from a cash flow perspective on top of property taxes (close to $2k/month) and insurance. That said, I obviously like the idea of more liquidity than less as we adjust to homeownership so am curious what most would recommend at this point.
HCOL (obviously) and not leaving the area for multiple reasons, top public school district for our 2 young kids, mid-30s, will need $35-$40k cash just for closing costs
With 20% down, I estimate $6,980k/month PITI, plus utilities...but allows us to keep ~$450k liquid.
With 25% down, I estimate $6,675/month PITI, plus utilities...~$370k liquid
With 30% down, I estimate $6,370/month PITI, plus utilities...~$295k liquid
Income = $495k
- $315k base + $180k bonus - likely to increase in the next few years, possibly considerably
- $550k cash
- $235k equities
- $800k 401ks, IRAs, HSA (almost all equities)
- $50k rental property equity
- $18k car loan
- $30k student loans
Thanks in advance.