<prompt> Human: I am fortunate enough to have many options with my life. My wife and I 26,27 arent exactly sure where we want to live forever. We are currently renting in SoCal and I love it here, but other places like Oregon arent off limits. So we met with a mortgage adviser today, and he recommended buying a house near the beach and putting only 3.5 down. It will appreciate in value, and the interest rates could be lower making up for the mortgage insurance I would have to pay for not putting down 20. This would allow us to maintain my liquid cash, and possibly buy another house sooner than I would be able to had I put 20 down on the first house.His logic was this is the best way to own property, which will likely appreciate in value, and I can rent it out to cover the mortgage, and 30 years from now Ill have an extra property I can rent out for passive income, plus the equity in the house. It also helps with the problem of not knowing if we do want to live here forever. On the other hand, everyone has told me lately to put 20 down if you can to avoid the unnecessary insurance costs.Any advice is appreciated. Thanks  <response>: It will appreciate in valueNo. It might appreciate in value. If you remember the last housing crisis it might also decrease in value. the interest rates could be lower making up for the mortgage insurance I would have to pay for not putting down 20Why would the interest rates be lower right now if you put down 3.5 versus 20? Banks love somebody who is able to put in 20, and thus the interest rates on those loans tend to be lower. It might be a different story if you didnt have 20 and needed to save up for it for a few years who knows what the interest rate would be at that point, but in your case, youve got the money already. It also helps with the problem of not knowing if we do want to live here forever. Yes, you would lock yourself in a cage and not be able to move away. That sounds like a fun life! s 