Opportunity cost and the time value of money. |
Do you earn interest on your down payment? No. Is your down payment accessible? No. What would your down payment be worth today had you been able to keep it and invest it? That is opportunity cost. Let us look at your down payment over you and your children's lifetime. Many people are of the opinion that paying cash for their house is a good idea. This would be the equivalent of making the largest down payment possible. |
No math presented on this screen. |