How Big a Down Payment Do You Need in Tooele UT

 

What is ideal down payment
What is ideal down payment

How to Determine How Big of a Down Payment You Need In Tooele UT

It doesn’t really matter where you are getting your home loan. What matters is what kind of loan you want to get and how much you want your payments to be. There is a ton of information out there but it never hurts to be over informed. Generally, the more money you put down the better interest rate you will get. The better the interest rate, the lower the payment. Want to conserve cash? Put down a minimum down payment and pay the difference out over time with larger house payments. If you’re trying to determine the ideal amount to put down, here are some things to consider.

Explaining Down Payments And Why They’re Important

The down payment on the house you buy is more than likely the largest single cash outlay you will make for anything.  When you buy a house, the down payment is the amount of money that goes into the initial home investment, and is deducted from the cost of the house. It is usually paid to the title company at settlement, and must be in the form of “good funds” IE: Cashiers check or bank draft. (bringing cash to closing is NOT ACCEPTABLE).

Amounts For Down Payments

Many figures are suggested as the ideal down payment percentage. Those numbers are often expressed as a percentage of the sales price.They generally vary from 3-20% of the home’s cost. If you are paying a percentage on the low side of the scale, you will probably not have as many mortgage options and will incur  an increased interest rate. The amount you should pay depends on your financial health, and financial philosophy. I have read where some lenders relate this number to purchasing commitment, but I have seen many buyers with small skin in the game that were more committed than home buyers with larger the down payments. Bottom line……the more you put down the less your monthly payment will be.

What Is The Ideal Percentage

If possible, the best deal, and ideal percentage is at least 20% of a home’s total price  Saving that much cash may take a lot of time and effort, but this can be the ideal amount to put down. In addition to lowered monthly payments and a better interest rate, you’ll also be able to avoid Private Mortgage Insurance (PMI), which is required if you put down less than 20%. There is no right answer to the question of how much to put towards a down payment, but you may end up spending less in the long run if you can invest more in the beginning.

What Other Real Estate Professionals Have To Say

Low down payment mortgages can compete in today’s market | 2016 … – HousingWire

https://news.google.com 

HousingWireLow down payment mortgages can compete in today’s market | 2016 …HousingWireDespite the growing prominence of low down payment mortgages, first-time homebuyers believe they need to put 20% down to compete in today’s market, butᅠ…Challe …

Read more …

Down Payment Mistakes That Will Kill Your Home Buying Chances – Realtor.com News

https://news.google.com 

Realtor.com NewsDown Payment Mistakes That Will Kill Your Home Buying ChancesRealtor.com NewsDo the wrong thing with your down payment and you might end up in a paperwork nightmare (or worse, denied a loan altogether).and moreᅠ»

Read more …

Low down payment mortgages can compete in today’s market | 2016 … – HousingWire

https://news.google.com 

HousingWireLow down payment mortgages can compete in today’s market | 2016 …HousingWireDespite the growing prominence of low down payment mortgages, first-time homebuyers believe they need to put 20% down to compete in today’s market, butᅠ…Challe …

Read more …

 

There are many numbers & standards thrown around when it comes to real estate, but the amount of money a home buyer should plan on for a down payment should be the percentage economically feasible for you and enable you to make your monthly payments consistently.

If you’re planning on Buying a home in Tooele UT in the near future and are looking for options I hope you will give us a call. Berna & Chris Sloan 435-840-5029

Chris & I have years of experience in this industry and in this market. We also know the lenders that are best able to provide lending information and are in the best position to advise you on how big a down payment you need in Tooele UT

 

Leave a Reply

Your email address will not be published. Required fields are marked *