I am a hopeful first-time homebuyer in Denver, CO. Having never done this before, I don't know how much of a down payment I should plan to make (%). I know there are programs to do it with no down payment, but I think it would be better to make one. I have heard that mortgage insurance may be required if I don't make a big enough down payment. Can I expect, 5%, 7.5%, 10%, other %? Thanks!
2006-10-12 04:25:52 · 10 answers · asked by grrrrrrrrrrrrrrrr! 1 in Home & Garden ➔ Other - Home & Garden
Where i live most mortgage co require at least 5% down.However the more you pay down the better rate you could get plus a smaller monthly house note.Yes if you dont pay enough down insurance is requried and that also depends on purchase price of house.
2006-10-12 04:40:04 · answer #1 · answered by Topper B 1 · 0⤊ 0⤋
Don't get it over your head, and try to make sure you have some money saved up once you put in the downpayment. And of course the more DP you use, the lower your monthly payments will be.
I would recommend 5%-7% depending on the interest rate of the mortgage. Higher interest rate; use a higher DP.
And see if you can do a 80/20 mortgage so you won't have to pay PMI. Ask your broker about that.
2006-10-12 04:28:57 · answer #2 · answered by Mike Oxlong 2 · 0⤊ 0⤋
Depends on what you can afford and what mortgage type you are planning to take.
Large amounts down +20% usually give you a better mortgage rate and lower your mortgage payment. Keep in mind that the housing market is still overinflated, and that a correction might take place. You don't want to end up owning more on the house that the market value, in case you need to sell.
Good luck.
If you can not afford to put a lot of money down, and you don't like the rates provided, I can advice to look at a FHA loan (which offers better rates, but which includes mortgage insurance)
2006-10-12 04:39:01 · answer #3 · answered by Avatar the last airbender 3 · 0⤊ 0⤋
There are now many programs available that require "no" down payment. You just have to shop around for them. Your Realtor should be able to help you. I got into my house using the "Nehemiah Program". I financed the house for $3000 more and the seller donated that to the program which qualified as a down payment. There are many angles to checkout when getting financing. They will try to get as much down payment as they can out of you. Shop wisely!!!!!
2006-10-12 04:32:53 · answer #4 · answered by bugear001 6 · 0⤊ 0⤋
You'll have to pay mortgage insurance (PMI) if you make less than a 20% downpayment. PMI is a complete waste of money, but lots of people simply cannot afford a 20% downpayment.
This is different than homeowners insurance, which you'll also need.
2006-10-12 04:34:14 · answer #5 · answered by Sheik Yerbouti 4 · 0⤊ 0⤋
It totally depends on the type of loan, in US Veterans 0, FHA 3.5%, Conventional 5% - 20%, but you may be able to do a second to reduce the amount of cash you need. See a mortgage lender to determine what works best for you.
2016-03-28 06:24:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The pat answer is 10 -20 % of course there are always exceptions and special programs and such.
2006-10-12 04:28:26 · answer #7 · answered by Norman 7 · 0⤊ 0⤋
20% down and you do not have to pay PMI, less than 20% you pay PMI and progressively higher interest rates, except for those bogus ARMs which just go to loan shark rates on the reset.
2006-10-12 04:36:25 · answer #8 · answered by kate 7 · 0⤊ 0⤋
Well out here (canada) they say 5% but i say the more you put in the less your payments will be.
2006-10-12 04:29:45 · answer #9 · answered by terri2003anne 3 · 0⤊ 0⤋
Just save as much as you can... save, save save!
2006-10-12 04:33:00 · answer #10 · answered by betterlife_travel 4 · 0⤊ 0⤋