How much should have have saved up for a good downpayment, I was looking to have 30,000 for a downpayment, is that enough?
2006-09-10 20:47:45 · 8 answers · asked by angelajock 3 in Business & Finance ➔ Renting & Real Estate
I'm looking to move to a suburb of GA.
Like Marietta,Kennesaw,Roswell,Alpharetta,or Decatur
2006-09-11 03:43:43 · update #1
There are two purposes for down payments:
_ To show you're serious and responsible
_ To create collateral in the property, so that if you default on your mortgage, it's more likely the people who repossess it (your lenders) can sell it at a profit (or at least break even, depending on the market)
So how much of a down payment do you need? Ask some financial institutions. You're going to have to deal with them to get a mortgage, so they're the ones who will tell you how much they require.
And feel VERY lucky that you can actually buy a house for such little dough! (My wife and I just bought a modest three-bedroom house here in Vancouver, BC for $600,000---and that's considered cheap here!)
2006-09-10 20:58:13 · answer #1 · answered by Ander 3 · 1⤊ 0⤋
Depends upon where you are. In the US, if you've got decent credit, you can get 100% financing, although if you put a down payment of at least 5%, you'll get a lower rate.
Other places in the world have 20, 30, and 50 percent miniumum down payments.
2006-09-11 10:32:08 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
Yes, that is close to 20%, which is standard. However, would you consider delaying your plan as the U.S. housing market continues to slump? You probably can save 10 or 20% by waiting a year.
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
2006-09-11 04:56:15 · answer #3 · answered by Price is what you pay for value. 3 · 1⤊ 0⤋
Close. If you can make it $34,000, that'd be better. You want to put down 20%, if you can manage it. That way you avoid PMI getting rolled into your mortgage payment, thereby saving money every month. Putting a larger down payment also drives your mortgage rate down. Good luck to you!
2006-09-11 03:58:19 · answer #4 · answered by Jen 6 · 0⤊ 0⤋
20% down is typical, that will cover the 10-15% required plus the fees. For a house thats 170K, I think you should have around 33K. I think your estimate will be about right.
2006-09-11 03:55:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
normally depends on the mortgage some time they ask for 10% or 20% or 30 % of the property value to be mortgage, depends on Ur bank
2006-09-11 03:55:50 · answer #6 · answered by torraks 3 · 0⤊ 0⤋
Actually one has to pay 10% of the total cost of the house.
2006-09-11 04:54:07 · answer #7 · answered by kannu_sweetest 2 · 0⤊ 0⤋
http://adityamoney-aditya.blogspot.com/
2006-09-11 05:21:27 · answer #8 · answered by juop l 1 · 0⤊ 0⤋