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From: marc@petrus.UUCP (Marc Pucci)
Newsgroups: net.invest
Subject: Re: Mortgage Down Payments and Good Inve
Message-ID: <698@petrus.UUCP>
Date: Fri, 22-Nov-85 11:14:04 EST
Article-I.D.: petrus.698
Posted: Fri Nov 22 11:14:04 1985
Date-Received: Sun, 24-Nov-85 05:00:40 EST
Organization: Bell Communications Research, Inc
Lines: 17

> ...
> John Levine, ima!johnl
> 
> PS:  In case you wondered if I'm sincere, I cashed in most of my other
> investments and put down over 50% of the purchase price of my house when
> I bought it 4 years ago.

Will making a large down-payment alter the amount of mortgage a bank
will extend to you.  Generally, I hear they will not lend more than
28% or so of your monthly gross can cover in taxes and payments.  I
guessed that this was to cover themselves by a less likely default.
If you put 50% down the bank is practically guaranteed to get their
share of the money back even if they sell the house at a loss.


Marc Pucci
Bell Communications Research