Mortgage Question - low down payment

cluelessbride Posted: Jul 13, 2003 07:30 PM

Mortgage Question - low down payment

My FH and I are really itching to buy a home, but low and behold we have little saved for a downpayment.

Just how little can we get away with? We are thinking of buying in Huntington Station, for around 275k.

Thanks Ladies!!

WithThisRing Posted: Jul 13, 2003 07:38 PM

Re: Mortgage Question - low down payment

I am not really sure. Each morgage is different. You can go as little as 5% and as high as 20%.

WithThisRing Posted: Jul 13, 2003 07:40 PM

Re: Mortgage Question - low down payment

Also with a low downpayment their are other things that get tacked on. Morgage insurance or something.

I am sure the girls on here will be able to give you more info

Suzanne Posted: Jul 13, 2003 07:41 PM

Re: Mortgage Question - low down payment

you can actually go as little as 3% down and wrap the closing costs into the mortgage, but remember you will have to pay PMI...

WithThisRing Posted: Jul 13, 2003 07:43 PM

Re: Mortgage Question - low down payment

Check out this site. They are really good with helping to buy a home or questions with a morgage

Fannie Mae

Lisa Rose Posted: Jul 13, 2003 07:43 PM

Re: Mortgage Question - low down payment

If you do not put down 20% you will have to pay PMI payment each month. THat is basically and extra amount added to yiur monthly mortgage payment that you will pay until you finally get 20% equity in the house.

There are many differnt types of mortgages that you can get. Talk to a mortgage broker or a bank person. sometimes they will let you roll your downpayment into the total mortgage.

Good Luck!!

Marnles Posted: Jul 13, 2003 08:54 PM

Re: Mortgage Question - low down payment

Ditto to what everyone else said.....

PMI stinks though. It's like putting cash in a pile and lighting a match to it.....it's just extra money you pay and it goes nowhere, not towards the principle, insurance, taxes, nothing!! I hate that! And it's not that easy to get rid of it either...

But it was worth it to us to pay it to own our own home - better than paying rent. There was no way we could afford 20% (we put 10%) and the closing costs.......then still have money in the bank to buy paint!!

Good luck!