I know it's recommended to put down a 20% downpayment on a house to avoid penalties but looking at housing prices now I don't see how it's possible to save up that much money w/out getting killed in taxes. Not to mention that it would take forever! For those who bought homes what % was your downpayment and how much is the penalty if you're not putting down 20%?
JuneBabyBride
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Re: Does anyone really put down 20% to buy a house?
I am running into that same problem, I only have 5% and they are telling me I really should have more and blah blah blah, I was like who keeps like 80 or 90 in the bank, not me!!!
Good luck!!!
kpny622
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Re: Does anyone really put down 20% to buy a house?
there are many many different types of loans where you can put less than 20% down - and sometimes you can avoid PMI by doing 2 mortgages (an 80% and then a piggyback for 10%)
a lot of people do have 20% down though for various reasons - they already own something that appreciated, or they saved a big bonus one year from work, or they borrowed it from parents, etc.
what do you mean by getting killed in taxes on your savings?
julz33
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Re: Does anyone really put down 20% to buy a house?
We saved for 2 years and are putting 20% down. I am also confused about getting killed on taxes. We actually made a lot of money by using ING to keep our savings. There are many other ways you can do it to avoid PMI... I don't know much about it though. I'm sure other girls on here could tell you!
jmarshall
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Re: Does anyone really put down 20% to buy a house?
We were able to put down 20%, but I had been saving for a while. But to avoid the jumbo loan, we had to piggyback our loans. So far, it's working out.
Valentinegirl
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Re: Does anyone really put down 20% to buy a house?
Posted by kpny622
there are many many different types of loans where you can put less than 20% down - and sometimes you can avoid PMI by doing 2 mortgages (an 80% and then a piggyback for 10%)
We put 5% down and did the 2 loans to avoid PMI.
nov04LIbride
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Re: Does anyone really put down 20% to buy a house?
We put down 40% on our condo
gina&ken
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Re: Does anyone really put down 20% to buy a house?
we put down 10%, and have to pay PMI. it's about $80/month.
Summerbride04
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Re: Does anyone really put down 20% to buy a house?
Posted by kpny622
there are many many different types of loans where you can put less than 20% down - and sometimes you can avoid PMI by doing 2 mortgages (an 80% and then a piggyback for 10%)
a lot of people do have 20% down though for various reasons - they already own something that appreciated, or they saved a big bonus one year from work, or they borrowed it from parents, etc.
what do you mean by getting killed in taxes on your savings?
I just meant DH and I make pretty good money together and the longer we go w/out owning anything the more $$ the IRS takes
DjPiLL
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Re: Does anyone really put down 20% to buy a house?
Posted by Summerbride04
I just meant DH and I make pretty good money together and the longer we go w/out owning anything the more $$ the IRS takes
Thats a known misconception. People shouldn't buy a house just to 'get a tax break'.
Yeah you get a tax break... but the reason for that is because you are getting a break on paying additional TAXES in the first place! Stuff you normally wouldn't pay if you didn't own.
chmlengr
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Re: Does anyone really put down 20% to buy a house?
I think it was all about our savings and investments we cashed out - but it can be done. We put down 35% when we bought our house and our mortgage is a lot lower than if we put down 20%.
Kate
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Re: Does anyone really put down 20% to buy a house?
We put 20% down, there is no penalty for not putting 20% down unless you mean the PMI insurance. I don't know what that would've been, probably like PP said, around $80-100 per month until you get up to an amount equal to the 20%.
verdila
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Re: Does anyone really put down 20% to buy a house?
We put down 15% and are also doing the 2 piggyback loans (one 30 yr larger, one 15 yr smaller) to avoid PMI-- creative financing people!! There is alot out there!
