This is a YouTube video titled "🤔 Put more Down? Or Invest it? 🤔" containing a financial explanation by Sukhinder Singh Cassidy about the pros and cons of putting a 5% versus 20% down payment on a house, including considerations of interest, PMI, and investment returns over 10 years. The content is a single-speaker financial advice segment recorded in 2021.
Let's say you're buying a house for 350 grand, but you have the means to put 20% down. Let's play out two different options. 5% down, you'll hold 15% back. This is 88 grand after 10 years of interest. And $11,000 in PMI, which falls off after seven years. 99 grand. 20% down. Option number two. You only pay 74 grand in interest. Never had PMI. You're 25 grand ahead. But if you swing this around, 15% was invested instead. At 10% a year for 10 years, you come ahead $83,000. So you can sacrifice the 25 to make 83.
