Here’s how to invest if you’re saving for a house:

The main variables in your down payment or full payment investment decision are: time, return, risk, existing cash, and cash flow.

Here are some assumptions to think about:

– The closer you are to buying a house the less risk you should take.

– The lower your risk tolerance, the lower risk you should take.

– The better your investing acumen, the more risk you are able to take.

– The higher your existing cash balance, the more risk you can take.

– The higher your cash flow, the more risk you can take.

– The higher the mortgage interest rate, the bigger the down payment you should make.

– The higher you expect mortgage rates to go, the pickier you should be.

– The more bullish you are about your financial future, the more leverage you may take.

– Investments should be made in investments that can become liquid by the time you want to purchase.