2007-09-10 03:34:59 · 6 answers · asked by Pete 2 in Business & Finance ➔ Renting & Real Estate
5% is fine on a $300k house. With good credit and full income documentation, you shouldn't have to put any money down if you don't want to.
The thing to watch out for is PMI - the more you put down, the lower your monthly Private Mortgage Insurance payment will be. This amount is tax deductible for 2007; not sure if this will continue.
If you are planning to keep the home for 15 years or more, you may not want to pay a higher interest rate to avoid PMI as someone else suggested. You will pay far more in interest than you will in PMI, and you're stuck with the higher rate for the life of the loan. PMI is automatically removed once your loan balance equals 78% of your original purchase price. You can also request that it be removed when you feel that your loan balance is 80% of the current appraised value. The lender will request that a full appraisal be sent in at that time, to substantiate your request.
2007-09-10 04:17:05 · answer #1 · answered by Mr. Knowitall 3 · 0⤊ 0⤋
everyone says 20% .... but you can still get the SAME rate as you're putting 20% down. the probably with putting less than 20% is that you will have to pay PMI.
BUT....there are lenders who are paying your PMI...'lender's paid PMI program' with 5% down...and you wont have to do the 80/15/5. the interest may be slightly higher but it is tax deductible. still better than paying PMI.
other options may include government loans...but this will depend on the county/state that you live in. every county has different mortgage loan limits. good luck
2007-09-10 11:00:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it depends on your credit. if you have a good credit, even with no down payment you can still get approve. but if you are bad credit, you need to put 20% of 300K which is $60,000.
2007-09-10 12:41:44 · answer #3 · answered by White Lady 1 · 0⤊ 0⤋
I would agree that it will fall short. To get the best rate, you should be putting down at least 20%. On a 300,00 home that would 45,000. You may want to think about a different price range.
2007-09-10 11:27:05 · answer #4 · answered by bpl 5 · 0⤊ 0⤋
For best rates you need about 20% down, or $60,000.
2007-09-10 10:40:46 · answer #5 · answered by ? 5 · 0⤊ 0⤋
depends on your credit score
20 percent should be safe.
2007-09-10 10:45:38 · answer #6 · answered by Fuzzybutt 7 · 0⤊ 0⤋