Not sure exactly how much should be put down on home
2007-03-22 06:53:07 · 12 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The general rule of thumb is have 1% of the cost of your home in savings to cover closing costs and fees. It's also advisable to pay 5% down, so that your monthly payments won't be so high.
Congrats on your new home!
2007-03-22 07:10:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Usually it's 20% of the price of the home and you can borrow the other 80% in the mortgage. Many banks will allow you to put down less, sometimes as little as 5%, but then will make you purchase private mortgage insurance (PMI). The premiums on PMI can run a couple of hundred dollars a month (depending on the mortgage), so it's really worth it to spend more time saving in order to put down more money.
2007-03-22 13:57:23 · answer #2 · answered by jenzee 2 · 0⤊ 0⤋
If you do an 80/20 loan you need no money down and by doing two loans you can bypass the pmi. There are also programs that will help fund the down payment. Try Ameridream or you can contact your county. A good mortgage broker can help you get a better interest rate and will let you know all the options available to you.
2007-03-22 14:04:33 · answer #3 · answered by cevron@sbcglobal.net 1 · 0⤊ 0⤋
If you have good credit you can finance 100% of the home. Then all you need to do is save up enough money to cover your closing costs. You can call your local title company to find out what the normal costs of closing are on a home in your price range. However, if you do not want to finance 100% then usually the down payment is between 5 and 20% of your purchase price depending on credit worthiness and the value of the home you want to purchase.
2007-03-22 13:58:15 · answer #4 · answered by mvette78 3 · 0⤊ 0⤋
20% is the norm..BUT
Where I live in is almost impossible to put that much for first time home buyers. Alot of people do a 10% down and then piggyback the other 10%. No need to do PMI anymore, it is almost obsolete...
2007-03-22 14:07:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Usually 5%, 10% is even better. As much as you can, really. It also depends on institution you will be getting the mortgage loan from. Some have certain rules.
2007-03-22 13:57:21 · answer #6 · answered by carriespnc 2 · 0⤊ 0⤋
10% is a good rule of thumb. Usually when you have at least that much you avoid having to pay mortgage insurance to your lender which can save you thousands of dollars over the life of the loan.
2007-03-22 14:02:24 · answer #7 · answered by nmalien 2 · 0⤊ 0⤋
The more you put down the better rate you can negotiate and the lower interest you will pay on the balance.
2007-03-22 13:57:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Depends on your loan and how much you want your monthly payments to be. I put down 20% and have ridiculously low payments.
2007-03-22 13:56:36 · answer #9 · answered by pokecheckme 4 · 0⤊ 0⤋
20%- If you put down 20%, then you don't have to buy morgage insurance. If you can't put down 20%, then don't put down anything.
2007-03-22 13:56:39 · answer #10 · answered by Bayou Brigadier 3 · 0⤊ 0⤋