2007-07-16 14:46:16 · 7 answers · asked by loulo 2 in Business & Finance ➔ Renting & Real Estate
Why not?
2007-07-16 14:50:50 · answer #1 · answered by smiling_freds_biz_info 6 · 0⤊ 2⤋
By not putting a downpayment on a house, you usually have to get two loans in order to finance your house since lenders will not give you more than 80% at once. Usually the loan for the 20% has a higher rate than your regular mortgage and can possibly be an adjustable rate, meaning that you will end up paying more and more each year to pay off both loans. With the fact that interest rates are more likely to go up than down, you should avoid adjustable rates at all costs.
2007-07-16 15:02:06 · answer #2 · answered by Andrea B 3 · 1⤊ 0⤋
NO! My recommendation would be to put down 10 to 20% and also have about 5% to 10% on hand for closing costs, a fridge, a lawnmower, drapes, blinds, a water hose, etc.
Take whatever you will be paying each month for your interest and principal, property taxes, home owners association dues, home owner's insurance, flood insurance, higher utilities, maintenance, etc. Put that in savings until you have saved up the 10% to 20% you need. During that period, you will also become certain that you can live off of the reduced leftover money and you will get a better taste for your budget.
2007-07-16 14:53:26 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Have you spoken with a lender? Are you prequaled for 100% financing? If this is easier for you financially, go for it! Unless you have a sizeable downpayment like at least 20% of the home's cost, it won't really make a difference in your monthly mortgage payments. I say use your extra money for the upgrades or furniture you'll want to put into your new home.
2007-07-16 14:53:59 · answer #4 · answered by J k 3 · 0⤊ 0⤋
If you do your payments and interest might be higher. And most banks prefer a down payment to due a loan. There are also state programs in some states that help you get your first house. They wont buy the house for you but they will assist.
2007-07-16 14:53:49 · answer #5 · answered by VMG 2 · 0⤊ 0⤋
Are you talking about not having a down payment? Not a good idea. It will be harder to get a mortgage and you'll probably pay more, plus have to pay for mortgage insurance. And if for any reason you have to sell it soon, you'd probably have to come up with a large sum to close since you wouldn't have equity.
2007-07-16 14:54:22 · answer #6 · answered by Judy 7 · 1⤊ 0⤋
if you have the chance to do so, I would say yes. Just make sure if the loan is a fixed rate loan and not something that will give you 2nd thoughts 2 years from
2007-07-16 14:54:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋