If you have that much you'd have no problem getting one...but no way.
Theoretically you could get a house with 20K...it might be difficult, but it can be done!
Ronnie&Theresa
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Re: How much dept do you need for a house?+
How do you know how much you need for a dept?
wacky
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Re: How much dept do you need for a house?+
between 20 - 25% if less you get stuck paying PMI
Suzanne
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Re: How much dept do you need for a house?+
well if you had that money that would be great, but i think it would take me years to save that much...
you can put as little as 3% down on a house, but then remeber there is always PMI fees...but its better to throw away 2K on mortgage then on rent.. thats what i think anyway..
ChristineC68
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Re: How much dept do you need for a house?+
I thought you needed 10-20% of the purchase price?
Teri
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Re: How much dept do you need for a house?+
are you asking how much the down payment should be? If so, ideally, 20%, so you wouldn't have to pay points or have a HUGE mortgage. But that's easier said than done on a $400K + house!
februarybride
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Re: How much dept do you need for a house?+
In order to not pay PMI you should have 20% of the price of the home.
HeatherandNick
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Re: How much dept do you need for a house?+
I think it is better to put 20% but I have heard pf people putting as little as 5%
alisa
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Re: How much dept do you need for a house?+
We put down 5%. Our PMI is about $200 a month. I think is is worth it because it wouldve taken YEARS to save that extra 15%
prncssrachel
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Re: How much dept do you need for a house?+
go to www.mlsli.com and they have a mortgage calculator that figures out down payment and monthly mortgage payments.
LizD
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Re: How much dept do you need for a house?+
You can do it with as little as 3%, but you will pay the PMI and it is harder to get approved by the banks. Also, remember, the seller see's the % that you are putting down. A lot of times they will go with someone with a larger down payment because there is a better chance that person will be approved for a mortgage. I think now, with prices the way they are, most people put a lower % down.
Niecey
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Re: How much dept do you need for a house?+
T- figuring out how much of a deposit you are going to put down can be a very personal decision. A lot of factors go into it such as price of the house, your personal finances, money to spend after the purchase etc than you have to weight that against the whole bidding war for the house and like Liz said the seller sees all this. I think many of the girls already stated some of the pros and cons of the '20% rule' and PMI fees. Dh and I went back and forth on this. We debated if we should do the 20% or more because there is some work we would like to do immediately and we still wanted to have a decent savings in the bank. We wound up doing a little more than the 20% so we could lower our monthly payments...but we were saving for a while for that 20%!
Becky
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Re: How much dept do you need for a house?+
Keith and I were just approved for a mortgage with no points and no pmi and we are only putting 3% down. I think there are some great deals out there right now. So we are only puttin about 4K down, but we live in MD. And the closing costs are a beyotch.
cw0904
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Re: How much dept do you need for a house?+
There are ways to get around paying PMI. Many people posted info on this before. For some it benefits to go the paying PMI route for others it doesn't. It depends on your financial situation.
Cira
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Re: How much dept do you need for a house?+
You can avoid PMI if you don't put 20% by doing an 80/10/10 ... that's what Rob and I did and we don't pay any PMI.
But T ... everyone says a downpayment should be about 20% of the purchase price ... but I think that it is totally discretionary and totally depends on your income. You shouldn't let your mortgage exceed a certain amount of your income and I think that is about 40-45% (all loans total). With our incomes we were able to put down less because we could afford a greater mortgage.
Personally, for our next house, I want to have enough of a downpayment that my mortgage will be the same as I'm paying now ... so basically I want a $200K more home, I need $200K more for a down payment. So, you need more money down for a more expensive home.
butterfly20
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Re: How much dept do you need for a house?+
20%... you could do it with less but then you have to pay out extra money
MarcellaBella
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Re: How much dept do you need for a house?+
Theresa, I already told you .. silly girl.
Jordan
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Re: How much dept do you need for a house?+
You can put down as little as 5% and still get a home...you will pay the PMI but you can have your home reassessed in a year and depending on that outcome, no longer have to pay the PMI. To avoid the PMI in the first place, you need to put down a minimum of 20%. This does not include closing costs and such.
ILT1221
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Re: How much dept do you need for a house?+
Yes you can put as little as 3% down which is great. But I just wanted to add that in this current market, depending on the seller and the demand for the house, its better to put down 20% if you can.
