We have 20% to put down....but we just found a FIXER UPPER!!! I mean fixer fixer fixer upper....which we are prepared to tackle
we have a money market that is maturing in the spring...so its possible to have the cash on hand...but I am afraid that this will be the moneypit...and that we should have some back up cash....
80/10/10 comes out to be $200 more a month....
we haven't made an offer...but maybe tonight?
shelzyp
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Re: 20% down or 80/10/10?
I did 20% down, but we were building new, so there is nothing to fix.
I would maybe think about doing the 80/10/10 if you want to have extra cash. You can alwasy change it later, and refinance.
Sage10.03
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Re: 20% down or 80/10/10?
If you have the 20%, put it down and do the 'fixings' gradually.... I would rather have a lower mortgage payment b/c god forbid somethings happens, at least you have the security of a manageable payment.
Although the extra money would be good for the 'fixing-up'...for me, I would rather have the lower payment!
sage...thats how I am feeling right now...plus we will be getting some liquid cash in a few months...but I have a feeling that we will be spending more than that...
Jenn P
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Re: 20% down or 80/10/10?
I'm with Sage-If the repairs are not immediately necessary (like a sagging roof or a mold problem) then I would go with the lower mortgage payment and do the repairs slowly. That's just my conservative finance mentality talking. If you take out an 80/10/10 it may not be worth it to refinance later because rates are so low now.
HeatherandNick
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Re: 20% down or 80/10/10?
I am all for a lower monthly payment. SO far we put 5% down at contract but will be putting an additional 15% at closing
Charly
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Re: 20% down or 80/10/10?
We are doing 80/15/5 since we are paying for our entire wedding at the same time!!! I don't think I timed this very good!
ugh...we are now thinking this place needs so much done that maybe we should do the 80/10/10...
Cira
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Re: 20% down or 80/10/10?
Erica, we did an 80/10/10 since we didn't have as big of a down payment when we bought our house, but we have the income to pay the mortgage. It would be nice to have a lower mortgage payment but I don't regret what we did.
WeddingsRock
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Re: 20% down or 80/10/10?
We would have wiped out our entire account if we put the 20% down. What we did was take an 80% mortgage and put 10% down. The remaind 10% came for a loan from my In-Laws. This allowed us to have no interest and have a lower mortgage payment!
PMI is (Personal? Property?) Mortgage insurance...
if you finance one loan for more than 80% of the house's value this is insurance since you don't have enough of your own money in the house...they want to trust you'll make the payment...
I think thats the basic idea...but people get around this by taking out a second mortgage
