So, I saw this video on tik-tok where the creator claimed that it was smarter to use your down payment on the second payment instead of as a down payment. Before I believed him I had to model it for myself so I created this repo.
Was he right? I did an experiment:
Loan Finished in 25.500000 years.
Total of Payments: 519694.744830
Loan Finished in 30.0 years.
Total of Payments: 551449.565304
So, at first it appears he was correct. With a second payment of 40k the loan is finished 5 years earlier saving $31,754.82 over a 40k down payment. The problem with this logic however is that often your loan interest rate is determined partially by the amount of your down payment. It's likely that if you don't put your 40k down you'll have to take a loan with a higher rate. The only solution is to carefully model all of the scenarios available to you. Perhaps if you have strong enough credit your rate won't be too negatively affected.
First, update the code with details of your mortgage (amount, interest rate, etc...) Then compile with the normal CMake method:
mkdir -p build && pushd build && cmake .. && make && popd
Property taxes + PMI