Obviously the current house market is a lil off and there are higher interest rates in the past (let’s call it 6 percent). If you are in the market for a 500k house and you have 400k in wealth, why would you not put 300k on the house? This leaves the 100k safety net/entertainment money accessible . This scenario can assume this average person is already saving well for retirement.
What is the argument to only putting 20% down and keeping the rest liquid.
The mortgage rates are higher than a high yield savings, so seems like that is not an option.
The market is generally scary (Especially this week…but that’s another argument) so getting consistent returns of >6 percent seems like risk/reward isn’t there.
Positive argument would be having a large amount of cash liquid to enjoy the money more, invest, or buy toys.
I know this is subjective but even the most general explanation is fine.
Thanks!