Tips on How Much Money to Put Down on First House

[Jeremy Martin]

Hello,

My wife and I are looking to buy our first house. I own a house with my brother (deeded to us by our grandmother). My brother is going to “buy me out” by getting a cash out refinance for half the value.

Basically I could end up with somewhere between $180k to $200k in cash depending on the appraisal (we’re aware of the gift tax implications on this).

The asking price on the house I’m looking at is $265,000. The idea of dumping all my money into this house, get a 15 year mortgage, and then pay it off in like 2-4 years seemed VERY appealing. To have my first house and have it paid off so soon seemed like a no brainer.

Then my wife suggested we hold onto some cash for possible repairs or upgrades, and I though, oh... that seems like a no brained too. Then I thought, well what if there’s other stuff I should save money for, or things we wanna do before having a child (not much time for that by now, she’s almost 29).

I’m wondering if anyone has tips on a good amount to put down, or anything I’m not thinking of. Maybe keeping money for other real estate investments.

Thanks!