Do you think 15-20 grand is a good downpayment for a condo? Also if if you have a condo, can you put more downpayment on it in the future? how does that work? I want to move out of my house soon as my parents are driving me nuts, but i do not want to waste my money on apartment rent so my plan is to get a condo instead...
2006-10-22 11:26:44 · 5 answers · asked by hersheybar99 1 in Business & Finance ➔ Renting & Real Estate
You can put down as much or as little as you would like. The more you put down the lower your mortgage payment will be. If your in Connecticut please contact me and I can help you find a place.
2006-10-22 11:33:49 · answer #1 · answered by mikeyc06010 2 · 0⤊ 0⤋
It depends upon how much the condo costs, how much you can afford for monthly mortgage, home/condo owner's insurance, morgage insurance (if applicable...usually when your down payment is under 20% of the purchase price you have to have it), condo owner's association dues and how long you plan to live there / if you can sublease (so when you sell it you get a return on your investment).
If your condo is $150,000 then sure $20k is a good downpayment for someone just starting out. However, it is under 20% so you will have to pay for mortgage insurance (which is probably not that expensive, maybe $20-30 per month). A lot of people buy with zero down these days (which is NUTS in my opinion) or get 100% interest loans (again...NUTS!)
There are A LOT of things first time home buyers don't anticipate so take a free class at your local community center or through a non-profit housing group. Make sure you understand the benefits AND pitfalls of escrow (having your mortgage co. pay your property and other taxes and insurances), the market in your area, interest rates, paying points, closing costs, etc. BEFORE you even start looking. If you decide to go for it get pre-approved by a lender before looking as well. It will make things go smoother and faster. Good luck!
2006-10-22 11:37:53 · answer #2 · answered by HRGal 3 · 0⤊ 0⤋
It depends on the value of the condo. Most banks will finance 80% of the appraised value of a house or condo. THis means you either have to have 20% down or get the seller to settle on a price that is less than the appraised value. $20,000 would work if the total cost was $100,000. At any point you can make a larger payment. If you do this you must include a note to the bank to apply it to the principle of the loan.
2006-10-22 11:36:44 · answer #3 · answered by xox_bass_player_xox 6 · 0⤊ 0⤋
That all depends on how much the condo costs. It's a good time to buy so your definitely in good shape. Find out how much of a difference it makes in your payment whether you put 10 or 20K down. You can also use that money to get a lower interest rate. Work with an expert who can point you in the right direction.
2006-10-22 11:36:44 · answer #4 · answered by Justin 3 · 0⤊ 0⤋
You must have in consideration the following:
1. The more money you put as down payment for a condo, the lowest your monthly mortgage payment is, and viceversa. (also consider how good or bad is your credit score).
2. Every dollar you inject as down payment to a condo, it will translate into equity, that means your money will grow as much as the value of your condo. It is an investment!
If you are in South Florida, I can help.
2006-10-22 14:40:26 · answer #5 · answered by waterfrontrealtor 1 · 0⤊ 0⤋