Recasting A Mortgage

[Paige Seeley]

I'm in the process of purchasing my first investment property. Is it better to do a smaller down payment compared to 20% to save on interest rates and then take a lump sum to recast the mortgage? Any thoughts or tips on recasting would be appreciated!

[Cory J Thornton]

@Paige Seeley - If I am understanding the hart of your post correctly, you are balancing the decision to put more money down, in order to have better cashflow, vs going with a lower down payment (keeping cash in your control) but having a higher monthly payment. 

Thomas Sewell is one of my all time favorite economists. He will frequently frame things in terms of a trade off. Usually there is not a universally true right and wrong investment decision that applies the same to every individual. The important thing for each individual to understand are the trade offs that will be made with each decision. That information paired with a goal or some factor you are optimizing for, will usually lead to an informed decision for your situation. 

Best of luck on your learning and investing Journey!