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MrsS2005
Mom of 3
Member since 11/05 13118 total posts
Name: B
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Curious About Down Payment
We're not ready to buy a house just yet, but I was wondering whether it's always better to put a larger down payment on a house. If you can afford somewhere between 10 and 20% for a down payment, is it better to put down 10% and have a decent amount of $ in the bank or is it better to use a lot of your savings to put down 15-20%?
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Posted 1/24/06 11:46 AM |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name: Tom
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Re: Curious About Down Payment
various factors go into down payment.
1. what is your mortage company gonna give ya and how much is it going to be.
2. how much does the owner want to hold the property?
3. how much can you afford?
4. do you want to furnish your new home with new stuff?
For us, we tried to put the least amount of cash down so we can keep some of our savings and furnish the home.
Don't fall into the trap that you have to put money down as many people do 90 - 100 % financeing....
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Posted 1/24/06 12:04 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name: guess
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Re: Curious About Down Payment
I think it's really a personal choice. It depends on too many factors - all of which have to work for the both of you.
Do you want to pay PMI or take out another loan (piggyback)?
A lot of sellers want the buyer who is going to put the most $$ down...so factor that in when it comes down to a house that you really love.
You don't need to furnish your house right away...but you should have $$ in the bank to fall back on, imo.
Since you're not ready to buy just yet, I would just bank as much money now that you possibly can so that you have a few options once the time comes.
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Posted 1/24/06 12:22 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name: Richard
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Re: Curious About Down Payment
You should ALWAYS put down as much money as you can on your house.
The more you put down = the less interest you pay = the more money you save in the end.
If you are worried about having an emergency fund... immediately open a HELOC after you close. Once the HELOC is opened... you can pull money from it whenever you want regardless of your financial condition (you don't have to be employed to pull from your HELOC).
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Posted 1/24/06 1:03 PM |
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Sweets13
Bella Bambini
Member since 5/05 9300 total posts
Name:
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Re: Curious About Down Payment
Posted by DjPiLL
You should ALWAYS put down as much money as you can on your house.
The more you put down = the less interest you pay = the more money you save in the end.
If you are worried about having an emergency fund... immediately open a HELOC after you close. Once the HELOC is opened... you can pull money from it whenever you want regardless of your financial condition (you don't have to be employed to pull from your HELOC).
when opening a HELOC, is it a simple process or is it like getting approved for a mortgage?
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Posted 1/24/06 1:24 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name: Richard
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Re: Curious About Down Payment
Posted by rosaria
when opening a HELOC, is it a simple process or is it like getting approved for a mortgage?
Its very simple. All you usually need is a credit check. But the key is to apply when you are in financially good standing.
And they don't cost you anything either. Hell... Citibank will give you a free iPod Nano for just opening the HELOC (you don't even have to draw on it).
Free Ipod Nano
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Posted 1/24/06 1:27 PM |
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Sweets13
Bella Bambini
Member since 5/05 9300 total posts
Name:
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Re: Curious About Down Payment
Thank you djpill!
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Posted 1/24/06 1:52 PM |
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Re: Curious About Down Payment
It was importatnt to us to put down enough to avoid PMI. Since I'm expecting, we knew we'd need a little extra cash in hand to furnish a nursery in addition to the rest of the house. We plan to pay more on the mortgage every month as well.
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Posted 1/24/06 1:58 PM |
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Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name: Jennifer
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Re: Curious About Down Payment
For us....we want to put down as much down as we possibly can. FOr us low mortgage payments and NO PMI was top priority.
But we do have a separate saving account that allows us to feel comfortable in that if something major was to happen we can cover ourselves.
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Posted 1/24/06 2:16 PM |
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