Buy the asset.
Not just a house.

It depends on the loan type and your goals. FHA loans allow 3.5% down with a 580+ credit score. Conventional loans go as low as 3% down. But putting down less than 20% on a conventional loan triggers PMI (Private Mortgage Insurance), which adds $50–$200/month to your payment. VA and USDA loans require zero down if you qualify. The "right" down payment depends on your cash reserves, your timeline, and whether PMI's cost is worth maintaining liquidity.

Minimum scores vary by loan type: FHA allows as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans generally require 620+. VA loans don't have a set minimum, though most lenders want 620+. The real answer is: the higher your score, the lower your rate. Going from 680 to 740+ can save you 0.25–0.75% in rate — that's thousands of dollars over the life of the loan. If your score is below 700, consider spending a few months improving it before applying.

Speed vs. flexibility. A 15-year mortgage has a lower interest rate and you pay far less total interest — but monthly payments are typically 30–40% higher. A 30-year mortgage gives you a lower monthly payment and more cash flow flexibility, which matters a lot if you're investing the difference. The "right" choice depends on your income stability, other investment opportunities, and risk tolerance. Neither is universally better — this decision deserves its own spreadsheet.

Budget 2–5% of the home's purchase price. On a $400,000 home, that's $8,000–$20,000 — in addition to your down payment. Closing costs include lender fees, title insurance, appraisal, attorney fees (in some states), prepaid property taxes, and homeowner's insurance. You'll receive a Loan Estimate within 3 days of applying, and a Closing Disclosure 3 days before close — review both carefully. You can sometimes negotiate with sellers to cover some closing costs, or roll them into the loan.

When the math works — not just because rates dropped. The classic rule was to refinance when you can drop your rate by 1%+, but that's too simple. Use our refinance calculator to find your break-even point: how many months until your monthly savings recoup the closing costs. If you plan to sell before you break even, a refi doesn't make sense. Other reasons to refinance: removing PMI, shortening your term, or tapping equity (cash-out refi) for a high-ROI use like a rental property.

It depends on your timeline, market, and what you'd do with the difference. Buying wins if you stay in the home 5+ years, the market appreciates, and you couldn't invest the down payment more productively elsewhere. Renting wins if you're in a high price-to-rent ratio market, plan to move within 3 years, or have a compelling investment vehicle for your capital. Don't let cultural pressure make this decision for you — run the numbers in our Rent vs. Buy Calculator.