Blog > No emptying your pockets - How much Cash do you Need to buy a house?
HOW MUCH MONEY NEEDED FOR DOWNPAYMENT?
How much cash do you have? Better to keep it in the bank? Big questions and definitely different for everyone.
The common opinion is that one has to put 20% down but that is oftentimes not unnecessary. For some buyers, even nothing or as little as 3% down is the right amount. It all depends on the credit score, what kind of monthly mortgage payment one likes to have and/or can afford. Best to talk to a lender about it.
And be careful not to put all your cash down as it might be needed for expenses such as moving, reserves for home maintenance and things like that.
Here are some tips:
A high down payment shall be considered
a) Trying to keep the monthly payment low
b) When considering later to have a reverse mortgage
c) Lowering the interest rate.
A low down payment shall be considered
a) When you don't have the funds
b) When the rate on your FHA or Fannie/Freddie loan is comparable
c) When confident the home will appreciate quickly, allowing to refinance to get rid of private mortgage insurance.
We at AGENTOWNED have partnered up with PROSPERITY HOME MORTGAGE. Truly amazing people who care and take their time to talk to every single person about their needs and make a plan to get a buyer qualified for a home loan. Contact Todd Huss for an initial consultation:
todd.huss@phmloans.com or visit his website: https://www.toddhuss.phmloans.com
Take care for now and I am looking forward to earning your business. In the meantime, please feel free to go house hunting on my website: www.DefinitelyCharleston.com
Ute Apple
by
Real Estate/Leasing/Property Management
www.DefinitelyCharleston.com
UAppleby@gmail.com
(843) 345-2625