Debt Free Home
When you buy a house, is it better to have a deposit or be debt free?
If I had to choose one or the other, I think it would be better to be debt free. In CA where I live, all I put $ 10,000 extra, it lowers my mortgage payment is $ 59.42 per month. Mortgage rates are 99% less time than traditional debt plus they have the bonus of being a tax deduction when the time comes. I thought about it as well and for me it is much smarter to get rid of debt rather to have a payment of $ 50 less expensive house. Once I get 20% of the purchase price of a house, so I'm repaying my loan Mortgage and eliminate PMI!
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