If I want to purchase a house, is it better to pay a higher price upfront or finance over time?
If I want to purchase a house, is it better to pay a higher price upfront or finance over time?
Whether to pay a higher price upfront or finance over time depends on several factors. Paying a higher upfront amount (a larger down payment) can reduce your monthly mortgage payments, decrease the total interest paid over the life of the loan, and may help you avoid private mortgage insurance (PMI). However, this strategy could deplete your savings. On the other hand, financing over time allows you to keep cash reserves for emergencies and other investments but may result in higher monthly payments and more interest paid over time. It’s important to consider your financial goals and consult a financial advisor.