istorically, home owning has been a good investment. But that doesn't mean that making a large down payment is the best strategy.

You may have a better use for your money. After all, money spent on a down payment is not available for other expenses or investments.

Are there better uses for your money?



In both cases, the profit ($10,000) is the same. But with a 20% down payment, you invested twice as much in the down payment to make the same overall profit. The additional $10,000 could have been invested elsewhere, or used for a family vacation to Mexico.