PHILO TV Reviews How Much Money Should I Put Down on My Mortgage Loan?
PHILO TV Reviews You may ask actually ask this question in two distinctly different ways. “How much should I put down?” or “How much will I be required to put down?” Both are valid questions that should be answered before you sign on the dotted line for your load. Take a minute to consider some important points about your down payment.
First, realize that requirements will vary from one lender to another. Some may be willing to finance 100 percent of the value of your new home, while others may limit the amount of financing to 80 or 90 percent of the value of the home.
PHILO TV Reviews Remember that this amount isn’t necessarily what you’re paying for the home. You may have found an anxious seller who’s giving you a great deal. In that case, you may very well get financing for the entire price you’re paying for the house. You may also be willing to pay more than the appraised value of the house. For example, if the house is located next door to your aging parents and you simply want to live there, you may be willing to pay more than an ordinary buyer. In that case, you may have to come up with more money down because the lender is only willing to loan 90 percent of the market value. Keep in mind that what makes a house more or less valuable to you personally may not be what the lender considers to be important. The lender is going to limit the loan amount to what can be recovered if you should default on the loan.
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The next thing to keep in mind is that you’re going to have expenses associated with the purchase that aren’t covered in the loan amount. Insurance and closing costs may be part of the loan, but you should ask about those specifics. Moving isn’t free, even if it’s just across town. You’ll have utilities – often with deposits – to pay before you can move in. If you put every penny you have as a down payment, you may find yourself facing insurmountable obstacles when you’re trying to get moved.
PHILO TV Reviews Finally, keep in mind that every penny you put down will reduce the amount of the loan. That means you’ll be facing a shorter pay off period and/or lower monthly payments. Both can be important factors. You should also remember that every dollar you put down is one less dollar to pay interest on, meaning that it’s actually saving you more in the long run. Take careful stock of your financial situation before you decide how much to put down. Then talk to your lender about requirements and about how much difference it will make if you put more (or less) down.