Always The Maximum Down Payment?

David asks if it's always best to put the maximum amount of money down when buying your first home.

QUESTION: David on Twitter asks if it’s always best to put the maximum amount of money down when buying your first home. Dave says yes.

ANSWER: When buying any home, it is always best to put the maximum amount of money down because we’re trying to get out of debt as fast as we possibly can. That’s the idea. We want to be debt-free as fast as we possibly can. The maximum amount is you leave your emergency fund in place. You don’t put that down. Your emergency fund is three to six months of expenses, but any other money I can get my hands on without penalties or something… In other words, I’m not going to cash out retirement, and I’m not going to mess up the emergency fund. But any other money, use it. Pay it down on the house. Don’t have the PMI. Don’t have the interest charged. You’re much better off to do that.

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