10% or 20% down on first home ?

[Luna D.]

Hi Everyone, 

I am trying to figure out what I should do in this situation: I have  good credit and would be able to make 20% down on my first deal. But I am struggle to see if I should down more or less (10% or 20%) on it. I am also getting 10k seller credit from seller, and could either use that one to buy down interest rate or just pay off the closing cost. the lender is giving me few option one with higher fund at closing and lower interest rate, and one with lower fund at closing with higher interest rate (about 0.2% difference) 

With the high interest rate right now, do you think it is better to do higher interest rate, and refinance later or should I just try to get as low as interest rate as possible and do not worry about refinance ? 

Also,  my realtor is recommend down more so I can avoid a lot of fees, but from what I read, it is better to down as low as possible so we can get better Return on Investment,.... is that true ? what would make more sense in the current market right now ? 

Thank you for your advice!

[Theresa Harris]

Do the math and see what you'd save if you put 20% down (ie mortgage insurance) and if you put 10% down; and what your payments would look like.  For the 10% down option also factor in what you'd make if you invested the other 10% and had higher mortgage payments.  Also do you need that other 10% for anything (ie home renos, saving for another home)?

For me, I'd do 20% down because where I am you'd pay more that the 10% in mortgage insurance.