There is a lot that goes in to buying a home, and it all takes some time. Questions about the process? Send me a message — I'm here to help! Matt Wielgos | EXIT Best Realty(C) 815-861
What To Consider Regarding Your Downpayment
Dated: July 4 2019
|Down Payment Dilemma: How Do You Know How Much to Put Down On A Home? |
|For many prospective home buyers, the down payment is the most daunting hurdle in the race to buy a home. Even for people with decent credit and a healthy paycheck, the down payment can be the great homeownership killer. |
The big question for all prospective buyers is: how much should my down payment be? Most lenders will tell you that 20 percent is the standard, but is that really necessary?
The short answer is no, but of course there are some caveats.
"It's a myth that all homebuyers must have a 20 percent down payment to buy a home," says Nancy Herrera-Siples, a City:Riverside&beds=0&baths=0&min=0&max=100000000&map=0&quick=1&submit=Search" title="Search Properties in Riverside">Riverside, CA, branch manger at Primary Residential Mortgage. So why all the fuss over having 20 percent to put down? "Because if you don't, it usually means you'll have to shell out money for either private mortgage insurance (PMI) or government insurance, which is usually financed by the Federal Housing Administration," according to Herrera-Siples.
Still, when a low down-payment is your only option to buy a home, PMI might literally be a small price to pay. Remember that PMI goes away eventually when your loan balance is 80 percent or less of the home's value. If you're in an area where homes are rising in value, this could happen sooner than you think.
Still confused about the ins and outs of down payments? Here are a few reasons to go high… or low.
When to make a substantial down payment:
For more, contact me via phone text or email. I'm happy to provide you with my very best service!
As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate here. It's not the same everywhere, so you need someone you can trust f....
Latest Blog Posts
Homebuyers and sellers showing resilience When industries begin speaking of a "new normal," it can be difficult