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re: What's the most amount of money you'd put down on a new house? It would be a new build.
Posted on 3/3/24 at 7:38 am to VermilionTiger
Posted on 3/3/24 at 7:38 am to VermilionTiger
I would put down at least enough to avoid paying PMI. Unfortunately this was not an option for me with my first house, but I got rid of it as soon as I could.
1
Posted on 3/3/24 at 8:07 am to VermilionTiger
At least enough to avoid PMI. I would also think about putting enough down to make payment enough for you to afford on one income if married.
Although too many variables to give best possible advice
Although too many variables to give best possible advice
Posted on 3/3/24 at 8:23 am to VermilionTiger
3.5-5%
Posted on 3/3/24 at 9:55 am to RoyalWe
I have no idea why people are so hung up over pmi.
It’s a tiny price to pay to maintain liquidity and avoiding be potentially cash poor.
I put 10% down on my first house and pmi was like 40 dollars a month.
It’s a tiny price to pay to maintain liquidity and avoiding be potentially cash poor.
I put 10% down on my first house and pmi was like 40 dollars a month.
Posted on 3/3/24 at 10:21 am to JohnnyKilroy
It's not that it's not affordable. It's just akin to money flushed down the toilet. So, sure, don't let paying PMI stop you from getting into a home. However, recognize it for what it is. It's called personal finance for a reason. Do what makes sense to you.
Posted on 3/3/24 at 10:59 am to RoyalWe
quote:
It's not that it's not affordable. It's just akin to money flushed down the toilet
If you have good credit pmi is negligible. It’s only for the bad credit folks (which there are a lot out there) where pmi is extremely hurtful. In 2018 I bought a property for $299k and put 10% down. My pmi was $38 a month. After 2 years because of increased home values the pmi was dropped. I sold that property in May of 2022 for $605k so pmi worked out very very well for me and I still had tons of liquidity in the bank to use on whatever I wanted. It’s a case by case basis. I know examples of people paying $300 a month in pmi that is Insanity and wouldn’t advise it. You are only as good as your credit score.
Posted on 3/3/24 at 11:08 am to VermilionTiger
I would do the minimum to not pay PMI as long as I could afford the payment. You can always use extra cash to make principal payments in the future but getting cash out of a house if you need it without selling is harder.
I live having cash on hand though so I’m probably more conservative than most.
I live having cash on hand though so I’m probably more conservative than most.
This post was edited on 3/3/24 at 11:11 am
Posted on 3/3/24 at 6:17 pm to VermilionTiger
The more expensive the house, the more likelihood that the person buying it is paying cash, or is putting down a huge deposit.
Minimum 20% unless you are a first time homebuyer and can get a 10% loan if they still exist. The mortgage insurance for the other 10% financed is a silent killer. One of the biggest mistakes I made when purchasing my first home. If I had waited another 8 months I would have saved thousands in mortgage insurance.
Minimum 20% unless you are a first time homebuyer and can get a 10% loan if they still exist. The mortgage insurance for the other 10% financed is a silent killer. One of the biggest mistakes I made when purchasing my first home. If I had waited another 8 months I would have saved thousands in mortgage insurance.
Posted on 3/3/24 at 9:13 pm to VermilionTiger
I built a 4/2 in 2001. I put down $70k on a $137k house. My note, with escrow that covered taxes and insurance was less than $450. I beat that up, like Cassius Clay on a speed bag.
Having no mortgage or rent payment was pretty damned attractive to me. It all just depends on what you feel best about.
Having no mortgage or rent payment was pretty damned attractive to me. It all just depends on what you feel best about.
This post was edited on 3/8/24 at 10:42 pm
Posted on 3/3/24 at 10:45 pm to Mariner
quote:
The mortgage insurance for the other 10% financed is a silent killer. One of the biggest mistakes I made when purchasing my first home. If I had waited another 8 months I would have saved thousands in mortgage insurance.
How?
I put down 10% on my first house. I paid like 350 bucks total in pmi before refinancing a year later when I got it dropped.
Posted on 3/4/24 at 5:46 am to JohnnyKilroy
“Enough to make you payment to where you can afford it on a 15 year note”
The David Ramsey sheep have entered the building.
The David Ramsey sheep have entered the building.
Posted on 3/4/24 at 5:55 am to Im4datigers
quote:
“Enough to make you payment to where you can afford it on a 15 year note”
“First, sell the car”
Posted on 3/4/24 at 6:05 am to JohnnyKilroy
I refinanced when I was not at 20%. A couple months later I called the mortgage company to say I paid down the debt and now am at 20% so take off the PMI. They said you have to have the loan for at least 2 years before they can take it off. I paid PMI for 8 years. Yes I know that is crazy. I learned a hard lesson.
Posted on 3/4/24 at 7:51 am to JohnnyKilroy
quote:
If you can’t put down 20% minimum, then you can’t afford it.
Terrible advice
__________________
Why? I have not paid the pmi fee in 30 years. Only paid it on my first house. So disagree with you. First house was also my only 30 year mortgage.
If you can’t put down 20% minimum, then you can’t afford it.
Terrible advice
__________________
Why? I have not paid the pmi fee in 30 years. Only paid it on my first house. So disagree with you. First house was also my only 30 year mortgage.
Posted on 3/4/24 at 8:15 am to Tifway419
quote:this is me. I’ve always been debt adverse. Put down 60%. Missed out on lots of money
put 50% down when rates were less than 3% thinking I’d want to pay it off in 5 years and be debt free. Kicking myself now that I could be coming out ahead by 2 grand per year with a simple HYSA if I only would have put 20% down.
Posted on 3/4/24 at 8:34 am to KWL85
quote:
Why? I have not paid the pmi fee in 30 years. Only paid it on my first house. So disagree with you. First house was also my only 30 year mortgage.
Because for first time homebuyers, especially in the current market, home prices may very well outpace your ability to save the cash you can save for a down payment.
Paying pmi is such a minuscule cost compared to what you can “lose” by waiting until you have the full 20%.
A big factor in my personal networth has been buying my first house for what I did and selling it a few years later for what I did. I only out 10% down to buy the house. It was in an incredibly desirable neighborhood that was only getting more and more expensive.
If I had waited another year or two to save up the additional 10%, the market would have passed me by and I would have had to buy a less desirable house in a less desirable neighborhood.
Also if you are still paying rent to a landlord because you don’t want to pay pmi, then you might be an idiot.
Posted on 3/4/24 at 8:36 am to VermilionTiger
Without knowing about any home equity sweet spots, I’d our down as much as you feel comfortable.
Thats much different than the advice I’ve given the majority of my career.
Thats much different than the advice I’ve given the majority of my career.
Posted on 3/4/24 at 8:40 am to VermilionTiger
Posted on 3/4/24 at 10:42 am to VermilionTiger
Wife and I about to start on a custom build/forever home on our property in south Lafayette Parish near Vermilion parish line.
Total value of proprety loan once rolled all into one mortage will be about 450K. We are putting 20% down (90k) at a minimum, most likely will end up being 100-110K when all is said and done. Final amount will depend on final sale of current home and how much more cash we put away between now and next spring.
Total value of proprety loan once rolled all into one mortage will be about 450K. We are putting 20% down (90k) at a minimum, most likely will end up being 100-110K when all is said and done. Final amount will depend on final sale of current home and how much more cash we put away between now and next spring.
Posted on 3/4/24 at 6:17 pm to ThatsAFactJack
Who’s your builder?
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