Buying Primary Residence

[Frank Lo]

Hello BP

Looking to buy our first home as a primary residence.

I see “first-time home buyer incentives” such as low down payment loans.

I am new at real estate, so this seems counterintuitive to me.

I think it is better to pay a higher down payment, which would equate to lower interest paid to the lender?

Lower down payment doesn’t seem like much of an incentive to me if you can afford 20%.

Are there other incentives for first-time home buyers that actually benefit an investors mindset?

[Frank Lo]

Sounds like I have a lot still to learn. It always amazes me how experienced investors see the bigger picture much easier than us newbies.

I was just looking at this with a microscope of getting the lowest interest rate possible.

We both work full time jobs, so living in a fixer upper with children is not really an option for us.

I have a great income with no major debt. I was thinking since there will always be a revenue stream for me to save for investing, I should try to lower the interest.

But I see now that I am not factoring in the opportunity cost of sinking too much into the down payment when I can use those funds to potentially return more than the difference for my interest payment.

As always, I appreciate the comments. This is why I love BP, I always learn something new every day.

Thanks guys