2007-08-25 10:59:50 · 11 answers · asked by Shika 1 in Business & Finance ➔ Renting & Real Estate
I think the bank will require 10,000 at least.
a $90,000 20 year mortgage at 6% will cost
about $650 per month in payments
2007-08-25 11:07:06 · answer #1 · answered by zanthus 5 · 0⤊ 0⤋
I agree that you will not have to pay PMI (Purchase Mortgage Insurance) which protects the lender from your default if you put 20% or 20K down in this case. BUT, I am hearing that the FHA, VA markets are coming back better and stronger than before so before you pony up all of the cash ask about the FHA loans and see if they are happy with a basic 3% down. This is a mortgage broker question not necessarily for the REALTOR. They will advise you to do what they are most familiar with and you should be working with a lender who is looking out for the best plan for you! Good luck the better questions you ask the better advice you get good job.!
2007-08-25 11:15:50 · answer #2 · answered by helprhome 5 · 0⤊ 0⤋
20% or $20,000. Lenders are very nervous at this time and will not loan any more money with zero down interest only loans.
20% will help you get a lender to actually want to do the loan.
It will also AVOID Private Mortgage Insurance (PMI) which is a total waste of money you would be required to pay every month to cover the lender in the event you skipped out on your payments.
2007-08-25 15:44:38 · answer #3 · answered by Terry S 5 · 0⤊ 0⤋
20% or $20,000 to avoid having to pay PMI (Private Mortgage Insurance). But, if you're like me, you don't have that kind of cash just laying around. So, with good credit and steady income, you may qualify for 100% financing and the money you've saved can go towards closing costs and other expenses (new furniture, remodeling, etc).
2007-08-25 11:09:14 · answer #4 · answered by VEGAS VIXEN 3 · 0⤊ 0⤋
Shika,
I agree with DakB. FHA loans are getting better. when we bought our home in Shreveport,LA we were put on a FHA loan. All we had to put down was 3%, which saved us a lot of money. Our plan was to flip and sale it. Needless to say the maket is crazy now, but with us being on a FHA loan our rate is only 6%. Being on a FHA loan, to me, is better. What happens is that your rate stays the same, you just get truned over to differt mortgage companys though out your 15-30yrs. Hope I was of some help!! God Bless!!
2007-08-25 11:58:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you put down 20% you will typically avoid PMI.
I would put down at least 10%.
The IDEAL down payment would be 100%!!!
2007-08-25 11:05:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
20% down on any property saves you paying PMI every month
If you put less down , you pay the Private Mortgage Insurance and it is Not tax deductible .
>
2007-08-25 11:09:37 · answer #7 · answered by kate 7 · 0⤊ 0⤋
5% gets you a better rate. Any more than that does not matter for rate. 20% and you avoid PMI.
2007-08-25 12:34:26 · answer #8 · answered by ? 4 · 0⤊ 0⤋
Shika, it depends on your financial situation. You could go zero down to 20% down. It's your call.
2007-08-25 11:12:02 · answer #9 · answered by Anonymous · 0⤊ 0⤋
$20,000 Especially in the last few weeks. If you qualify for a conforming loan you will be fine.
2007-08-25 11:04:32 · answer #10 · answered by Anonymous · 0⤊ 0⤋