Posted on: 20th Jun, 2006 12:28 pm
I think if I don't have enough money for down payment (or don't want to put down) I should look for mortgage loan with the lowest down payment option or the one with zero down. I don't see any problem in that, in fact I can keep my money with me and take the loan by giving away minimum initially. My friend argues that it can't be the best way to go. May I have some more views?
Hi Hagenbrock,
I shall go with your friend. You can get a mortgage loan with low down payment or zero down payment but they generally carry higher interest rates as well.
So, the money you think you are saving actually goes out with the larger interest rate paid on the loan.
If you can't afford the money for the down payment then only it is advisable to go for loans with low down or zero down. Otherwise keep some money aside to make a down payment and get a mortgage loan with good terms and low interest rates.
God bless you.
For MortgageFit,
Samantha
I shall go with your friend. You can get a mortgage loan with low down payment or zero down payment but they generally carry higher interest rates as well.
So, the money you think you are saving actually goes out with the larger interest rate paid on the loan.
If you can't afford the money for the down payment then only it is advisable to go for loans with low down or zero down. Otherwise keep some money aside to make a down payment and get a mortgage loan with good terms and low interest rates.
God bless you.
For MortgageFit,
Samantha
Hi,
In general you will find the average down payment rates on mortgages vary from 0% to 20% of the mortgage value depending on the type of loan and if it is guaranteed.
You must keep in mind that the more money you can put into the loan the better off you will be later.
Also with more money put down by you the lender will be able to give you better options in terms of rates, plan and thus you can save money in the long run.
Angel
In general you will find the average down payment rates on mortgages vary from 0% to 20% of the mortgage value depending on the type of loan and if it is guaranteed.
You must keep in mind that the more money you can put into the loan the better off you will be later.
Also with more money put down by you the lender will be able to give you better options in terms of rates, plan and thus you can save money in the long run.
Angel
If you can afford I shall recommend having at least 20% of the mortgage value in hand. This will help you to save thousands on PMI as well. You can also build up equity on your house faster.
Murphy
Murphy