2007-02-09 03:00:04 · 11 answers · asked by joe p 1 in Business & Finance ➔ Renting & Real Estate
Depends on the lender, but generally the answer is yes. You will need PMI insurance though which you will pay until you reach 20% down. I would avoid this if I could. For a primer on PMI insurance check out http://en.wikipedia.org/wiki/Private_Mortgage_Insurance
2007-02-09 03:09:42 · answer #1 · answered by JAY O 5 · 1⤊ 0⤋
You've received some great answers here, I just have a couple of things to add. Many times when you have a 2nd mortgage on a home, that is at a adjustable interest rate. You need to look at that if it is and see how much it can adjust. Interest rates have climbed over the last year, although historically they are still very low. Look at how much your payment can go up and how often it can adjust so that if rates do rise, you know that you can still afford the payment. Some lenders have options where you can lock in the adjustable rate to a fixed rate after a certain period (my sister did this after 90 days). There is usually only a small administrative fee to do this, I believe hers was about $150. See if that's an opition. Secondly you can deduct the interest that you do pay on both loans come tax time, so if you do have the 20% second, you have a higher write off on your taxes, and will save money there. The advice to talk to a financial planner who can look at your whole financial situation is the best solution because there are a lot of factors that need to be looked at to determine what the best way to go is, including your spending habits, investing habits, retirement plans, and so forth. Good luck!
2016-05-24 01:10:56 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Yes, you can put whatever you can afford. However, if you put down less than 20%, I believe you have to pay for the lender's mortgage insurance, which unnecessarily increases your mortgage payments. YOu're better off try to come up with at least a 20% down payment.
2007-02-09 03:07:51 · answer #3 · answered by Muga Wa Kabbz 5 · 1⤊ 1⤋
Absolutely. My wife and I put $0 cash down and just have two mortgages. One for 20% of the home, one for the remainder. So there is no reason why you could but 10% down, and borrow the rest somehow.
2007-02-09 03:09:09 · answer #4 · answered by Anonymous · 1⤊ 1⤋
The more the better if you can afford it. You will have less to pay monthly. Plus you can avoid mortgage insurance. Of course, if you have cash, pay it off. But if I were you, I would put 20%, that way you can have some cash in the pocket and can less monthly payment
2007-02-09 03:09:08 · answer #5 · answered by YourDreamDoc 7 · 1⤊ 0⤋
Just make sure your loan officer knows but make sure to read the fine print you will probably have to pay a mortgage insurance that will raise our payments.
2007-02-09 03:09:16 · answer #6 · answered by Lily P 2 · 0⤊ 0⤋
Sure....you can do an 80/10/10 loan...meaning 80% on the first trust and 10% on a HELOC and 10% down...no PMI
2007-02-09 04:36:26 · answer #7 · answered by boston857 5 · 0⤊ 1⤋
It depends on the lender. Some companies, like the one i work for, are able to lend up to 100% of a home's value. Every company has their own guidelines. Some are able to lend 90% some 80%.
2007-02-09 03:04:45 · answer #8 · answered by Anonymous · 1⤊ 2⤋
It will depend on the lender. The more you put down though the more equity you have in your home. Equity is always a good thing.
2007-02-09 09:22:01 · answer #9 · answered by Anonymous · 0⤊ 1⤋
sure you can put 0 down. check with lenders and get pre approved.
2007-02-12 23:48:55 · answer #10 · answered by swimmyfishy 4 · 0⤊ 0⤋