Spouse and I are both early career physicians age 31. We will be buying a home in July 2024 in a HCOL area worth ~1.15m.
We have cash saved to put either 10% or 5% down and will be using a physician mortgage (means no PMI, competitive rate similar to a conventional with 20% down).
In either case our mortgage will be just a bit under 2x gross income.
We have some additional tax protected investing space in a mega back-door roth that we would not be able to take advantage of if we put 10% down but could maximize if we only put 5% down.
Investing ~146k this year (2024) tax protected without including the megaback door roth. Would be ~192K if we max out the mega back-door roth.
Would you throw the cash at a bigger downpayment to establish more equity in the house or maximize the mega back-door roth tax advantage for the year?
We have cash saved to put either 10% or 5% down and will be using a physician mortgage (means no PMI, competitive rate similar to a conventional with 20% down).
In either case our mortgage will be just a bit under 2x gross income.
We have some additional tax protected investing space in a mega back-door roth that we would not be able to take advantage of if we put 10% down but could maximize if we only put 5% down.
Investing ~146k this year (2024) tax protected without including the megaback door roth. Would be ~192K if we max out the mega back-door roth.
Would you throw the cash at a bigger downpayment to establish more equity in the house or maximize the mega back-door roth tax advantage for the year?
Statistics: Posted by PeaksAndValleys — Sat Mar 02, 2024 9:26 pm — Replies 4 — Views 455