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Should I make a smaller down payment on my home, and invest the rest? - The Help Desk - Personal Finance FAQs - CNNMoney

Once you make the decision to purchase a home, that's when the real work starts or should I say the questions begin.  One of those questions is how much should I put down and how much should I finance?  The answer isn't always straight forward, many factors need to be taken into consideration, such as credit score, overall financial situation, loan products available, interest rates, etc.

The rule of thumb as been that if you can put 20% down on a 30 year loan, that was considered standard.  Now with historically low interest rates many people are looking at shorter term loans at much lower rates.  Generally the more you put down the lower the rate you can qualify for, but there are certain loan product that allow for less down and offer very low rates.  It's important you work with your realtor and lender to make sure the loan you choose is right for you.

To read a good article from CNN Money Magazine, click below.

Should I make a smaller down payment on my home, and invest the rest? - The Help Desk - Personal Finance FAQs - CNNMoney.