Im curious on how it works. Of course I am probably no way near putting anything down on a house but, what is the common denomination for a down payment? I hear 20% but is 10% an option anymore?
I know the lower the higher the mtg amount/monthly and so forth. Trying to prepare myself and how much I should be saving!
charon54
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Re: Question: Down payment
You can defintely put 10% down, you will need to pay PMI if you get a traditional mortgage, so look into a 80-10-10. We have an 80-15-5 and only put 5% down. Basically, you have a traditional mortgage and a home equity to make up the difference. But you don't have to pay PMI, so the money you pay goes towards your equity in the house.
RedHead
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Re: Question: Down payment
i believe you can put down whatever you want... There is no steadfast rule...
But if you want your payments to be as low as possible..it is best to put more down.
We are planning on putting down more than 20%
TracyInQueens
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Re: Question: Down payment
The amount we put down ended up being about 12% and we are doing the 80/10/10 thing too. (Only in our case, it's more like 80/12/8). IMO it's better than PMI because the second loan is a tax deduction.
I have a co-worker who put nothing down. She said she was able to because she had near-perfect credit.
DCSAAB06
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Member since
Re: Question: Down payment
Posted by charon54
You can defintely put 10% down, you will need to pay PMI if you get a traditional mortgage, so look into a 80-10-10. We have an 80-15-5 and only put 5% down. Basically, you have a traditional mortgage and a home equity to make up the difference. But you don't have to pay PMI, so the money you pay goes towards your equity in the house.
Ok, what does that mean? 80-15-5 or 80-10-10? How does that affect your monthly payment?
Im sorry...just trying to learn about all this. TIA! ETA: Thanks for ur responses!
TwoBugs
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Re: Question: Down payment
We put down 10%. PMI (for us, at least) isn't much, so it's not a big deal. Of course, if you can avoid paying it, you should....but we were not in a position to put down 20%.
TracyInQueens
Posted:
Member since
Re: Question: Down payment
Posted by DCSAAB06
Posted by charon54
You can defintely put 10% down, you will need to pay PMI if you get a traditional mortgage, so look into a 80-10-10. We have an 80-15-5 and only put 5% down. Basically, you have a traditional mortgage and a home equity to make up the difference. But you don't have to pay PMI, so the money you pay goes towards your equity in the house.
Ok, what does that mean? 80-15-5 or 80-10-10? How does that affect your monthly payment?
Im sorry...just trying to learn about all this. TIA! ETA: Thanks for ur responses!
I will use small numbers since I am bad at math.
You find a house for $3000. (yeah right ). You have $300 to put down, or 10%. You take out a mortgage for $2400 (80%) and a home equity line of credit for the remaining 10% ($300). So you are paying back two loans.
For us, the HELOC loan will be about $200 a month whereas the PMI would have been about $100. We chose the HELOC because of the tax benefits.
DCSAAB06
Posted:
Member since
Re: Question: Down payment
Posted by TracyInQueens
Posted by DCSAAB06
Posted by charon54
You can defintely put 10% down, you will need to pay PMI if you get a traditional mortgage, so look into a 80-10-10. We have an 80-15-5 and only put 5% down. Basically, you have a traditional mortgage and a home equity to make up the difference. But you don't have to pay PMI, so the money you pay goes towards your equity in the house.
Ok, what does that mean? 80-15-5 or 80-10-10? How does that affect your monthly payment?
Im sorry...just trying to learn about all this. TIA! ETA: Thanks for ur responses!
I will use small numbers since I am bad at math.
You find a house for $3000. (yeah right ). You have $300 to put down, or 10%. You take out a mortgage for $2400 (80%) and a home equity line of credit for the remaining 10% ($300). So you are paying back two loans.
For us, the HELOC loan will be about $200 a month whereas the PMI would have been about $100. We chose the HELOC because of the tax benefits.
Oh, ok..I got it! Either way......it looks as if buying a house is going to be a long ways away!
I dont know how anyone is doing it! My sister just bought a house in Massapequa Park for $449k and her down payment is way more than 20% with still monthly payments of $2800. I couldnt do it!
Blu-ize
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Member since
Re: Question: Down payment
We did an 80-10-10 as well. One thing to consider is that to a seller if you only put down 5% or so, you may not be the best choice for a buyer in their eyes. Doing an 80-10-10 makes it look like you are putting down 20% and may give you an advantage if you are competing for the house with another buyer than has more cash down than you.
gina&ken
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Re: Question: Down payment
Posted by Blu-ize
We did an 80-10-10 as well. One thing to consider is that to a seller if you only put down 5% or so, you may not be the best choice for a buyer in their eyes. Doing an 80-10-10 makes it look like you are putting down 20% and may give you an advantage if you are competing for the house with another buyer than has more cash down than you.
how does it make it look like you are ptting down 20%? wouldn't they know you have the other 10% loan?
