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Consider Rate Locks For Large Mortgages
- Consider paying a small fee to lock a mortgage rate if it buys meaningful peace of mind and limits rate risk exposure.
- A 0.5% fee on a large loan is often worth it; 1% is less attractive but may still be reasonable if rates spike.
Protect Short-Term Down Payment Funds
- For down payments needed within a few years, prioritize liquidity and low loss risk over high returns.
- Use cash, high-yield savings, short CDs, or a conservative mix with limited equity exposure if you can tolerate some volatility.
Three Rules For Short-Term Investing
- Short-term investing needs three considerations: liquidity, risk of loss, and consequences if money isn't there.
- Your flexibility on timing and alternatives determines how much risk you can accept.