If you know you need a big house downpayment in a year for a $500,000 house, do you:
A) Totally minimize your retirement contributions (just get your 401k match if any), and save everything else towards that downpayment, knowing at best you’ll get about 20% down?
B) Plan to save enough so that you’ll get at least 10% down (enough for a 80/10/10 loan), but put the rest away in tax-deferred accounts?
I’m shifting towards B, as I just don’t know if I want to have so much of our net worth tied up in a house. This way, I have a more balanced distribution as well as more money tucked away to grow until retirement. But then again, I’ll probably have to pay a higher rate for the piggyback loan or PMI. Thoughts?