Our RE agent said very few people and he was shocked that we have it. Is that something we can use to negotiate a lower price?
btrflygrl
Posted:
Member since
Re: How many people actually put down 20% nowadays?
it's possible it could be a negotiating tool, but it'll help with the mortgage. Down South...you may not need to put anything down!!
DjPiLL
Posted:
Member since
Re: How many people actually put down 20% nowadays?
I saw your other thread. Even if you have 60k saved up... do you have additional cash for closing costs? 60k is 20% on a 300k house. But remember closing costs will tack on about 10k so you probably only have 20% on a 250k house in reality.
But yeah... a lot of people do 80+10+10 mortgages to avoid PMI. 10% cash down. 10% higher rate mortgage. 80% full normal rate mortgage.
swags1016
Posted:
Member since
Re: How many people actually put down 20% nowadays?
Besides closing costs, you also don't want to tap yourselves out for repairs, paints and any other upgrades that you might want to do. We could have put almost double what we did put down but it would have killed us finacially and any bump that we might have in the house, we would not have the money to fix or repair. So we thought it best to put down what we did, get a 80-10-10 and have the extra money to work on the house, paint and buy new furniture
070502
Posted:
Member since
Re: How many people actually put down 20% nowadays?
We put O% down but we are in Florida and had about 10 days notice we needed to get a house there and less then 2 weeks to close.
The people who bought my parent's house in Bethpage had 50% down which my parents feel very confident going into closing and they took a lower bid since they wanted to sell ASAP and they knew this family would have no problem with a mortgage
butterfly20
Posted:
Member since
Re: How many people actually put down 20% nowadays?
ive noticed with every house we've looked at that there is always some type of work we would want to do to it..... that, plus the furnature costs to fill the house, and closing costs are all factors into the house.... we actually put more than 20% down, yet most real estate agents didnt seem surprised.....the thing that they liked was that we currently werent locked into a renting agreement or a house that we needed to sell....They liked that we were flexible for moving in and closing dates, which i think helped get us our house.
Valentinegirl
Posted:
Member since
Re: How many people actually put down 20% nowadays?
Posted by swags1016
Besides closing costs, you also don't want to tap yourselves out for repairs, paints and any other upgrades that you might want to do. We could have put almost double what we did put down but it would have killed us finacially and any bump that we might have in the house, we would not have the money to fix or repair. So we thought it best to put down what we did, get a 80-10-10 and have the extra money to work on the house, paint and buy new furniture
Same here. We did 80/15/5 loan. We put 1/2 down of what we had saved and used the rest for closing costs and repairs to the house. I could have put alot more down if I didn't do cosmetic work to the house but we wanted to change alot of stuff when we moved in. You have alot saved Julz. You should be fine even if you don't put the full 20% down. Good luck!
julz33
Posted:
Member since
Re: How many people actually put down 20% nowadays?
We have other money saved also. We have that much saved for the downpayment alone in our joint account. We still both have our own seperate accounts in addition to that one. So basically we have money for closing costs, repairs, etc. The 80-10-10 might be good but if giving the extra 20% up front will make or break the deal we can do it. Our RE agent acted like it was a really big deal that we had the 20%. I thought that was normal. I am so clueless!!!
fallinlove04
Posted:
Member since
Re: How many people actually put down 20% nowadays?
my mortgage broker told me that even people who have the money don't always put the 20% down. my fi and i are doing an 80-15-5. we needed the extra money for closing costs and a few repairs and cosmetics.
swags1016
Posted:
Member since
Re: How many people actually put down 20% nowadays?
I think that your RE made a big deal because now a days, it is not as common for first time home buyers to have the 20%, with prices being what they are.
Great job to your and your FH on saving that much, maybe you can give me some pointers, I am definitely a spender!!!
julz33
Posted:
Member since
Re: How many people actually put down 20% nowadays?
Posted by swags1016
I think that your RE made a big deal because now a days, it is not as common for first time home buyers to have the 20%, with prices being what they are.
Great job to your and your FH on saving that much, maybe you can give me some pointers, I am definitely a spender!!!
I think he probably was shocked because we look really young... actually we are young. But we have been saving over 60% of our paychecks each month for over 2 years now. We also have no bills (no car payments, already paid student loans, lived at home with min. rent most of those 2 years). I am really glad we waited before moving in together.. that min, of $24K saved from not renting
HillandRon
Posted:
Member since
Re: How many people actually put down 20% nowadays?
We did not think about doing anything else but put down 20%.
In the areas where we were looking- if y ou did not have the 20%. You can bet that you would not get the house..
It wasn't even an option.
Karen62794
Posted:
Member since
Re: How many people actually put down 20% nowadays?
Yep, we put 20% down and that was very helpful in negotiating. Plus, since we were both living with our parents at the time, we gave the sellers the opportunity to set the closing date/move out date anytime they wanted. That was huge!
nov04LIbride
Posted:
Member since
Re: How many people actually put down 20% nowadays?
We're putting more than 20% down, and buying a point and a half to lower monthly payments. So, we have to have an additional $10,000 at closing. Without that % down, I think our monthly payments would be hard to swing...I also want to upgrade places in the next 3-5 years, so I definitely want to continue to save...But yeah, I don't think too many young people have that much saved. Our mortgage guy was also surprised that we had it.
ETA: Unless you are a full cash buyer, I don't think the % down helps negotiate a lower purchase price.
Kathy116
Posted:
Member since
Re: How many people actually put down 20% nowadays?
We put down 20%, but we also paid points or something (similar to what someone else on this thread said they did)
Niecey
Posted:
Member since
Re: How many people actually put down 20% nowadays?
julz23 - the young thing is probably what made her in my opinion. I know DH and I are in our early 30's but look a lot younger and we were looking for houses in a decent price range and realtors kept trying to convince us to look at lower priced homes - they kept trying to get us to go for starter homes and such and we were looking bigger - when they would hear our age they were like ...so unfortunately the way you look goes into it. It was very annoying - so we found our house thru an open house so not to deal with some of the annoying realtors we met!
Anyway, back to your question, we put down over the 20% and I think it was a good thing for us because our sellers wanted to close fast and knowing we had the 20% to put down and knowing DH works for a major bank - they felt comfortable that we would get our mortage quickly - which we did. They had only one other offer who offered more but couldn't close as quick so we got the house.
