How Much Cash Should I Put Down?

This is one of those questions that is at the heart of any transaction to buy real estate. For many, the answer seems obvious – as little as possible! Is this accurate? It depends on your perspective. If you intend to live in the home for a relatively short period, say 2 to 5 years, you are better off limiting the amount you put down because there really isn’t any advantage to stuffing money into the home. If, on the other hand, you are in for the long haul with a home, then you should consider putting more than 20 percent down. Why? Well, you will eliminate the need to pay private mortgage insurance, which can be a really nice savings.