2007-01-13 20:06:38 · 8 answers · asked by robhennessycpa 1 in Business & Finance ➔ Renting & Real Estate
It's not necessarily a bad thing but it is an expensive thing. You'll pay a higher interest rate. Your payments will be higher due to the interest rate and the amount financed. And you'll have to PMI (Private Mortgage Insurance) if you put down less than 20%.
2007-01-13 20:48:16 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
If you are a veteran you can buy homes with very good terms. Why don't you check out the National Guard?
Generally the greater a down payment you make the less you will pay as interest. This is true because you will owe less and also because the interest rate will probably be lower. Borrowers who can save a large down payment can also pay off the loan without defaulting. That means the loan maker will have lower costs servicing the loan so they can offer lower rates.
2007-01-13 20:14:34 · answer #2 · answered by jude2918 3 · 0⤊ 0⤋
many factors come into play when buying a house with no money down. always look at the interest rate. also down payment reduces the amount you finance which in turn greatly affects your monthly payment. also look very closely at any deal involving no money down. very rarely do these type of deals benefit the homebuyer. do you really want to buy a house that the owner doesn't even think they can get a down payment on? would you sell your house that way? probably not. good luck.
2007-01-13 23:56:46 · answer #3 · answered by Van F 2 · 0⤊ 0⤋
those residences are insured by the federal government, so there is not a similar possibility. even although, that doesn't recommend that there is no possibility in any respect. FHA loans have been around for an rather long term....properly earlier every physique went insane questioning that their $a hundred and fifty,000 abode exchange into worth a million/2 a million dollars and properly earlier the marketplace got here backtrack to certainty. oftentimes those debtors bypass via a miles greater rigorous screening technique, than classic loans.
2016-10-19 23:13:07 · answer #4 · answered by ? 4 · 0⤊ 0⤋
bostonianinmo is right, it’s not inherently a bad idea but there is no question that it will cost you more than if you save for a down payment.
It’s all about risk, if you are putting in some of your own money you are sharing the risk that means that the lender will have less risk, lower risk lower cost higher risk higher cost.
It can be done but you need to have a very broad, comprehensive understanding of how mortgage lending works.
2007-01-14 00:37:40 · answer #5 · answered by edoubleyou 4 · 0⤊ 0⤋
Yes it is because it puts the lender in the position where they can increase the interest rate saying to you they are doing a favour by giving you the loan and expect you to accept that.
2007-01-13 20:13:07 · answer #6 · answered by SEO 3 · 0⤊ 1⤋
yes.. you want to put as much down as possible.. (the less you borrow-payback).. get a fixed intrest rate.. look around at YOUR OWN banks.. they are out to make money, be your friend, well, if the price is right.. on a 52000 loan, in 20 years you pay back around 130000... re dick you ******** less....
2007-01-13 20:17:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
YES! How are you gonna buy a house without money? Nobody would sell their house for free.
2007-01-13 20:24:37 · answer #8 · answered by Anonymous · 0⤊ 1⤋