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How Much Do You have to Put Down on Home?
Posted on 10/3/16 at 12:55 pm
Posted on 10/3/16 at 12:55 pm
I'm looking at purchasing a home (don't own currently). I have an 800+ credit score and more assets than the price of the house I'm looking at. I really don't want to sell my stocks and pay taxes to make a 20% down payment. What do think the minimum I would be required to put down to get a mortgage? The house will be about $165,000 if that matters. The only debt I have is a small auto loan and I make a good salary.
5
Posted on 10/3/16 at 1:10 pm to Crazy4OU
Can be as low as 3 to 5%
Posted on 10/3/16 at 1:12 pm to Crazy4OU
Will your stocks make more than the PMI charge that you get if you don't put 20% down? If the stocks are already taxed at the capital gains rate, then does it really make a difference. You'll pay the tax now or later. I'm not sure what PMI rates really are, but I know when I bought my first house ($175k) the people we bought it from said they paid $75 a month in PMI. If your 20% down can make more than 2-3% it'd be worth it to keep your money in stocks I'd think.
Posted on 10/3/16 at 1:41 pm to Crazy4OU
Shop around lenders. You can find one that will offer lender paid PMI. In return they will bump your rate a bit (which you can write off the interest for) and you pay ZERO pmi. I did this with 5% down.
Posted on 10/3/16 at 2:03 pm to KG6
quote:
I'm not sure what PMI rates really are, but I know when I bought my first house ($175k) the people we bought it from said they paid $75 a month in PMI
I'm sure it is lender dependent but PMI is negotiable too. It would be good to get a rough idea, just know it isn't necessarily set in stone.
Posted on 10/3/16 at 3:31 pm to YipSkiddlyDooo
Thanks for the info.
Posted on 10/3/16 at 5:55 pm to Crazy4OU
quote:
How Much Do You have to Put Down on Home?
3-5% is what I would imagine most will require. I'd do my best to put down 20% and avoid PMI. If not, you are throwing away 75-100/mo for nothing. Of course, you can negotiate a higher rate for no PMI, but one way or the other, the bank is going to get that extra money from you.
Posted on 10/3/16 at 7:19 pm to Crazy4OU
FHA minimum is 3.5%
If your household income is low enough you can qualify for a 0 down USDA loan depending on the location of the home
If your household income is low enough you can qualify for a 0 down USDA loan depending on the location of the home
Posted on 10/3/16 at 9:07 pm to YipSkiddlyDooo
PMI rates are set by the Private Mortgage Insurance companies not the lenders. Hoowever lenders can quote a number of different PMI companies rates.
Going with the higher rate in lieu of PMI will save a few dollars each month, but that higher rate will be with you for the life of the loan
Going with the higher rate in lieu of PMI will save a few dollars each month, but that higher rate will be with you for the life of the loan
Posted on 10/3/16 at 9:09 pm to AUtigR24
If he has more thqn 20 % of the price of the home in liquid assets he would not be eligible for a USDA home, unless his DTI > 36%
Posted on 10/3/16 at 11:04 pm to gamatt53
quote:
and you pay ZERO pmi
Right. But PMI is also deductible and sure you may not pay any...but you take a higher interest rate and may end up paying way more interest over life of loan.
Depending on credit score and ltv, it may be better to take financed or monthly MI for several years vs a higher interest rate for 15 20 30 years.
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