I am currently renting but plan on buying a house worth $332,000 using a 30-year fixed rate loan. My gross yearly income is $150,000 with total expenses of about $2,500/month. I have no personal or student loans, no credit card debts and have $50,000 in savings. Do you recommend 20 percent down or should I do 80/20 with first and second mortgages? I may keep the house for three to five years and then rent it out. Is buying a house now a good investment?

An 80/20 piggyback mortgage is for someone that doesn’t have any money to use as a down payment. You pay up on the interest rate for the second mortgage because of the additional risk that lender is shouldering since you have no equity in the home. With your income and savings there’s no reason for you to pay those rates on the second.

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