How big a cushion?

Categories: Maintenance

As I’m sure you’re all tired of hearing by now, we’re buying a house. OK. So we have to decide between a construction loan and paying cash for the repairs. The construction loan will cost more in a myriad of ways. But if we pay cash, we will have only $10,000 to $20,000 left over for emergencies. Vs. we would have $40,000 left over if we paid way more for a loan. (The loan will cost us $&,000 more a year, among other things.) This is an old house, and there will definitely be some emergency repairs. How big a cushion do you think is reasonable?

By mopar | 01/10/2009 10:51 AM