Just wondering what percentage I will need to put down...on average, of course.
2007-02-25 04:48:20 · 8 answers · asked by HatTrick1706 1 in Business & Finance ➔ Renting & Real Estate
The average down payment is 20%. But for some that's impossible to come up with. If you credit is good, you can get 100% loan with no payment. 5 or 10% for bad credit.
2007-02-25 04:54:30 · answer #1 · answered by TP2001 2 · 0⤊ 0⤋
There's really no sense in worrying about the average down payment. What you need to know is that if you put 20% or more down, you will have a lower mortgage payment (the reasons aren't important for now). If you can't or don't want to put 20% or more down, don't. You can even put $0 down on a property, meaning it's 100% leveraged - meaning you buy it exclusively with Other People's Money. The Other people can be a lender, the seller or other investors. So consider your strategy before offering a down payment. It may or may not be a good idea. Talk to an investing realtor before you commit.
2007-02-28 08:51:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
In the old days when real estate loans were normal everyone did 20% down and got financing for the rest. Now a days, who knows, I've seen closings where not only is there no downpayment but the buyer walks away with money from the loan at closing. So check with your local real estate agent that you will be doing business with and ask him what the loan market is like in the area that you are looking at.
Buena Suerte
2007-02-25 04:59:43 · answer #3 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
the proportion maximum are attentive to is 20%. lenders often evaluate any loan the place the loan-to-fee ratio is above 80% to be risky, wherein case the lender will require you to purchase inner maximum loan coverage (or PMI) to offset the prospect. Say as an occasion to procure a house appraised at $100k and you mandatory to borrow the completed volume. this suggests the loan-to-fee ratio (or LTV) would be 100k/100k, or one hundred% -- risky interior the attention of the lender. they're going to in all probability make you purchase PMI. yet once you're making a down charge of 20% (or $20k) it ameliorations the LTV to 80k/100k, or 80%, that's not risky interior the attention of the lender. thus they does not require you to purchase PMI, saving you funds. in short there is no prevalent down charge volume -- that's something you are able to handle to pay for. whether, the extra you place down the decrease your loan volume and the extra it is going to save you interior the tip. The down charge isn't what's negotiable -- the desirable purchase value of the home is what's negotiable. the seller extremely would not care what you place down. that's between you and the lender.
2016-10-16 11:18:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
hi user, This about your question. i recommended this answer.
The down payment is money you give to the home's seller. The rest of the payment to the seller comes from your mortgage. Down payments are expressed as percentages. A down payment of at least 20% lets you avoid mortgage insurance. But otherwise, you are live in Florida USA. I m mean you are Florida people so I suggest to you just cheek it know United Financial Counselors is a non profit organization that is established and committed to raising the level of financial literacy of our clients.
2017-01-31 13:56:37 · answer #5 · answered by jhon 2 · 0⤊ 0⤋
20 % is a recommended amount by realtors, banks, etc. But, many people put down much less than this..often 10 %. This is a helpful site to look up that type of information. http://loan.divinfo.com/
2007-02-25 04:54:04 · answer #6 · answered by Reenie 3 · 0⤊ 0⤋
We offer a 98% LTV where you only pay 2% of how much the homes worth. Contact me if you're interested.
2007-02-25 13:34:47 · answer #7 · answered by Phil H 2 · 0⤊ 0⤋
in ontario you are required to put down 5%.
2007-02-25 04:53:08 · answer #8 · answered by valandfamily 2 · 0⤊ 0⤋