Understanding Mortgage Down Payments (Plus a Few Tips for Saving!) - MortgageDepot
Understanding Mortgage Down Payments (Plus a Few Tips for Saving!) - MortgageDepot
Abstract
Today we're going to answer your burning questions about down payments and eliminate some of the uncertainty you might be feeling. Even though you'll pay more upfront, these benefits will save you thousands over the life of your loan: Lower monthly mortgage payments No private mortgage insurance added to your monthly payment Lower interest rates Seller confidence in your offer While a 20% down payment is ideal, only 38% of buyers put at least that much down on their home purchase. With an array of mortgage products available to accommodate countless financial situations, many buyers get away with a lower down payment. Low Down Payments: What Are My Options? What if a 20% down payment is insurmountable? There are plenty of loan programs with lower down payments, although you will need to meet their eligibility requirements. Here are the minimum down payment requirements for the major types of loans: Conventional loans: 3% FHA loans: 3.5% VA loans: 0% USDA loans: 0% Saving for a Down Payment If you're putting money away for a down payment, you might need to take your savings strategy to the next level. In addition to earmarking a little money from each paycheck to put toward your real estate goals, here are a few ways you can increase your savings: Pick up a side job and put all earnings toward your down payment. Contact Us Today! Is saving for a down payment holding you back from reaching your real estate goals? Contact us at MortgageDepot to set a savings strategy or determine if a low-down-payment mortgage is a smart option for you.