2007-01-05 05:41:11 · 6 answers · asked by mellybee4321 3 in Business & Finance ➔ Renting & Real Estate
You have good intent but might not be taking advantage of several advantages available currently. Saving say $1,000.00 / month will get you $12,000 Closer to whatever down payment you want in 1 year. But, 1 year from now at standard appreciation a 145,000 starter home will cost a couple thousand more for the same typical down payment, than what you have saved. Interest rates will be higher also. Why be farther behind and have a less favorable interest rate. If you have sizable debt your best down payment would be to pay it off instead. Then get a 80/20 or a 100% loan with no PMI. You cant beat the rates and prices that exist today. If you really feel the risk is worth it to have a down payment then force yourself to agree to bank a set amount every payday and find a way to live within those means. Learning such will only make paying a mortgage easier down the road and show good saving and spending habits.
2007-01-05 07:02:37 · answer #1 · answered by Kevin H 4 · 1⤊ 1⤋
You have to look at how much down payment you want to have, How much the home you want to buy is, Your ability to budget extra money into savings etc.
You can get 100% loans w/seller covering closing costs so you dont really need any money down. Some people love the idea, some hate it!
2007-01-05 13:45:00 · answer #2 · answered by camrenalexis2 2 · 1⤊ 1⤋
It's a great idea to save money for a down payment. It will reduce your monthly mortgage payment and allow you to have some equity in the house.
However, it isn't mandatory to have a down payment. There are numerous programs for 1st time home buyers including 100% financing. I would speak with your bank or a mortgage lender for more details. Good Luck!
2007-01-05 13:49:00 · answer #3 · answered by Anonymous · 3⤊ 2⤋
if you put 20% down its worth putting a down payment save`s you money on home insurance and you can actually see a difference in monthly mortgage..if you don`t just get a no down payment option that`s how i do it...and you have those money that you don`t use for down payment for "black days"
2007-01-05 14:44:08 · answer #4 · answered by acmilan 2 · 0⤊ 1⤋
Put money in saving account each week, still saving, will eventually get there. In the meantime, living at home with the parents so I dont have to pay rent or buy my own food.
2007-01-05 13:43:47 · answer #5 · answered by strtat2 5 · 1⤊ 2⤋
Bite the bullet and get a house! Cost of living is going up more and more every year! Longer you wait the more homes are going to be!!!
2007-01-05 18:12:14 · answer #6 · answered by CEESONE 4 · 1⤊ 0⤋