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re: Minimum Amount Needed to Put Down on Home Purchase
Posted on 12/27/12 at 10:43 am to Cajun Revolution
Posted on 12/27/12 at 10:43 am to Cajun Revolution
quote:
whatever you do try to pay it off quickly... minimum amounts and extended load periods make you end up paying double actual price of the home.
If the OP is not planning on staying there long, why should you pay anything but the minimal possible? Put down as little as you can and spend as little of your own money as you can. Your house will likely appreciate and you can make money when you sell it.
ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)
This post was edited on 12/27/12 at 10:46 am
3
Posted on 12/27/12 at 1:11 pm to Delacroix
quote:
ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)
Agreed, plus he didn't convert those payments back to present value.
The RD loans do have a fee that gets added to the loan value. The income ceiling is also a factor.
I've heard of 80/15/5 loans where you take loans out to pay the 20% down and avoid PMI.
Posted on 12/27/12 at 8:38 pm to Delacroix
quote:
ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)
I disagree. Anytime you can pay a lesser price for something that's always a smart move.
$200,000 loan at 4% over 30 years will cost $343,000.
quote:
Put down as little as you can and spend as little of your own money as you can.
No, you're paying an extra $143,000 to borrow $200,000. Spending 171% of the purchase price to pay less today so you can to spend more tomorrow.
Now, take that same $200k over 15 years and you end up spending $266k, saving yourself $77k in the process, in addition to the equity that you've paid into the house.
Posted on 12/28/12 at 11:20 pm to Delacroix
quote:
ETA: The only time you should every pay off anything quickly is if you plan on keeping it your whole life or it is an item that depreciates (like a car)
Why would you not want to pay down/off a house early which gets rid of PMI much quicker and saves 10s of thousands of dollars in interest?
This post was edited on 12/28/12 at 11:23 pm
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