- $100k financing which have $20k downpayment to shop for a good $100k issue
- $80k mortgage which have $0 down payment to get a great $100k procedure
So that you try investing $100k in both things no matter, however in the original, you’re making a beneficial $20k down-payment included in the loan arrangement, plus the following circumstances, you are paying the $20k independent of the financing agreement. In products, there is the $20k to expend, but it is just a matter of whether or not spent it as this new advance payment otherwise purchase they independently of your own loan and you can only get a lower life expectancy mortgage.
Read morenot, our home is the collateral that promises the loan