TEXAS TRUST MORTGAGE
Bigger Down Payment vs. Invest the Difference
Compare two paths with the same cash: put more down for a smaller loan, or put the minimum down and invest the difference. See how net worth grows either way.
Home & financing
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Drops off automatically at 80% loan-to-value
Investment & growth
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Wealth at year 10
A snapshot 10 years in — the equity you'd build by putting more down, versus putting the minimum down and investing the difference (home equity plus the grown investment).
| Year | Bigger down (equity) | Min down + invested | Difference |
|---|
How this works & assumptions
Both paths use the same total cash — at closing and every month — so the net-worth lines start equal and diverge only on where the money goes. The bigger-down path invests its lower monthly payment as savings; the minimum-down path invests the lump-sum difference upfront and carries the larger loan (with PMI until 80% loan-to-value). Net worth = appreciated home value − remaining loan balance + investment balance. The investment grows at your rate of return, credited at the compounding frequency you choose (more frequent compounding grows slightly faster); the home appreciates annually. Same interest rate and term apply to both loans; the projection runs the length of the loan term. Estimates only — not investment, tax, or lending advice, not a Loan Estimate or offer to lend. Returns and appreciation are hypothetical, not guaranteed, and exclude taxes, insurance, maintenance, and selling costs.
Texas Trust Mortgage · texastrustmortgage.com