of expenses saved they have three four five years worth of expenses saved sitting in the bank account and for some people especially if you're a high income earner this could be hundreds of thousands of dollars if not a million dollars just sitting in your bank account sitting idle doing nothing if you have a lot of cash in your bank account so we're talking more than six months worth of expenses or if you want to be a big saver more than NUMBER_TOKEN months worth of expenses and this cash is just sitting in your bank account and you don't have any plans to invest it because either you don't want to invest your money or you feel like you already have an investment plan or you're scared of investing your money so you have this cash sitting in your bank account and you don't know what to do with it well now you can use this cash as a down payment for your home now this is a safer investment i don't like to call your own home that you live in an investment but for the purposes of this video it's a safer investment because now you are going to be the one paying the mortgage and so hopefully you trust yourself to pay the mortgage and so now you're going to be building equity in your own home when it comes to actually affording the home that you live in you got to afford the down payment the monthly payment and the moving costs if you want to actually be able to afford your down payment you need to be putting down a minimum of NUMBER_TOKEN percent so if you buy a hundred thousand dollar home that's twenty thousand dollars you buy a three hundred thousand dollar home that's sixty thousand dollars you buy a million dollar home that's two hundred thousand dollars so this is where a lot of people try to squeeze themselves because they look for ways to lower their down payment because that makes it easier for you to be able to afford your home but now if you have a lot of cash sitting there and you are not planning on investing this money you can use that money as a down payment to now buy your home and now when you buy your home you already have a decent amount of equity in your home by the way as a little side point if you don't have NUMBER_TOKEN to put down for your down payment your bank is going to charge you extra fees like pmi and they might charge you a higher interest rate because if you have a lower down payment then your bank is going to look at you like a riskier investment and so they're going to charge you a higher fee or higher interest rate to make up for this higher risk if you're putting down NUMBER_TOKEN you can avoid those higher fees and those extra fees because now you have more skin in the game so the meg is going to look at you like a safer investment and they're gonna charge you less money and interest which means you get to keep more money in your pocket and you don't gotta worry about making a bank as rich because you're not paying the bank as much in fees so if you have a lot of extra cash in your bank account beyond your emergency savings and beyond your investments use this cash to buy a home instead of renting because now at least you can put that money to good use in a safer way than just keeping your money in the bank where it's getting eaten away by inflation the second reason when it doesn't make sense for you to rent anymore after you got enough money to afford the down payment is when you can afford comfortably your monthly payments remember
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