If saving for a down payment seems like a daunting task, you are not alone. Many people think they have to put 20% down or they can’t get a loan. Luckily, that’s not the case. There are many programs you can use that require as little as 3.5% down, such as the FHA loan. However, even 3.5% down can seem like a looming amount. If the average home price in your area is $200,000, … [Read more...] about Ideas for Saving for a Down Payment
mortgage down payment
If you put less than 20% down on your home and you have a conventional loan, you probably pay PMI or Private MortgageInsurance. This added fee to your mortgage payment increases the amount you pay each month. It’s not a fee you will ever get back - the insurance premiums cover the lender should you default on the loan. Compare Offers from Several Mortgage … [Read more...] about Does PMI Drop Off Automatically?
The amount of a down payment you’ll need will depend on what kind of mortgage financing you choose, but most of the times you’ll need at least a minimum of 3% to 5% of the purchase price plus some additional cash to cover closing costs. If you’re in active military duty, a veteran, or in the reserves, you may not need a down payment at all. Minimum Down Payments The most … [Read more...] about How to Save Up for Mortgage Down Payment