looking into buying a house. First time buyers. How much would we need to put down?
Dont know much bout real estate so sorry if this sounds stupid
2007-03-06 13:46:18 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
i live in new mexico trying to save money now so in a couple of years we will be able to afford to get one...my good isnt all that great...
2007-03-06 13:57:39 · update #1
Looks like you got about every type of answer there is with all of the above. Here is what the facts are.
You can get 100% financing with a good interest rate currently you can get a Fannie Mae 100% loan at 6.5% on a 30 year fixed rate. You will have PMI (private mortgage insurance) The only way you can get out of pmi is to put 20% down or do a 80% first mortgage and a 20% second mortgage. You can go to the Fannie Mae website at www.fanniemae.com and get all kinds of good information about different financing options this website will answer alot of questions you have and the website will also have a list of Mortgage Brokers in your area that are approved to offer Fannie Mae products. Hope this helps good luck.
2007-03-06 16:45:47 · answer #1 · answered by Paul 2 · 0⤊ 0⤋
I don't know how current this is, but 20% used to be considered good. Be very very careful and make sure if you buy a house, you know exactly what you are getting into. For example, my neighbors behind me were anxious to get into this nice average house, and they got in with no down, but if they sold in the first 5 years, they lost all they had paid. he had a heart attack at 35 and lost his job and they had to move, lost it all and are still renting about 12 years later. You need to consider how much your payment plus monthly taxes and insurance would be as a portion of your stable income. Fixed loans are much much safer, 20 years will save you a lot in interest but will make your payments much higher, 30 year fixed loan is usually the best, I think ? and that usually makes the payments affordable and you can pay extra principal which substantially reduces your principal owed. You do get to claim the interest you pay as a write off on your yearly taxes and that really helps. Just be careful. You are making one of the biggest decisions of your life. search for Crown Ministry, they are very realistic.
2007-03-06 21:57:56 · answer #2 · answered by ? 4 · 0⤊ 0⤋
You do not need to put any money down. There are loans that are called 100% financing. Granted payment go up but....Get you loan approved and then talk to and real estate agent , offer on a house and ask the seller to pay your closing cost. A good real estate agent knows this and can help you. Remember no question is stupid. Where to you live maybe I can help?
2007-03-06 21:50:51 · answer #3 · answered by its me 2 · 1⤊ 0⤋
there's no stupid question first of all, what part of mexico do you live in? and you decided the down payment, per example banorte will lend you 80% hipotecaria nac 90% santander has a great program 100% financing if you have a house paid in full and the value cover at list half of the new home that you wish to buy it can be your parents home, I hope that this asnwer your question
2007-03-07 00:04:27 · answer #4 · answered by smartwoman 2 · 0⤊ 0⤋
The basics, lenders will require 10% down to avoid PMI or mortgage insurance. Though it's possible to get a mortgage with good credit for as little as $1000 down. Usually higher rate of interest is negotiated for that mortgage. Depends on what lender you choose.
Good luck,
Jen
Purchased 2 homes and working on the third.
2007-03-06 21:54:04 · answer #5 · answered by Jen 5 · 0⤊ 0⤋
you do not have to put any thing down you could get 100% finance with 80/20 loan programs. First loan being 80% and second 20%. you will have higer interest rate for second loan. you do not have to pay pmi. After some years refinance any get one loan. Some cities also help first time buyer to get good loan programs check with city. they might be big help for you.
2007-03-06 23:51:33 · answer #6 · answered by need help 1 · 0⤊ 0⤋
See if you can be qualified for FHA loan as a first time Buyer . It is government guaranted loan. It is very favorable financing for first time home buyers. Ask loan officers around , not everyone can do this kind of loans.
2007-03-06 23:46:10 · answer #7 · answered by Kate 1 · 0⤊ 0⤋
Down payment can vary widely between lenders. There are some programs that won't require any deposit at all.
You should put down as much as possilbe, this will lower your payment, and cost less in the long run.
2007-03-06 21:50:35 · answer #8 · answered by pnk517 4 · 0⤊ 0⤋
Most banks will want 20% down. If the bank agrees to lend for less then that, you will have to pay a mortgage insurance fee.
2007-03-06 21:48:38 · answer #9 · answered by Amit C 3 · 1⤊ 0⤋