A DOWN PAYMENT STRATEGY THAT IS RIGHT FOR YOU!

Dated: 07/13/2020

Views: 154

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders. But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available. THE

DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

Blog author image

Kenneth Manesse

Helping you experience something new in Las Vegas that's guaranteed. Real Estate with less stress!....

1 comments in this topic

  • Posted by Jay Valento
    07/14/2020
    You can buy a home with as little as 3.5% down. Ken can help you buy a home in the Las vegas area.

Latest Blog Posts

5 Must - Have Tools for New Homeowners!

When you own your home, things are going to break and, unless you want to spend your money on visits from a neighborhood handyman, you’re going to need to fix them yourself. Luckily, you don

Read More

Benefits of Home Ownership in Las Vegas!

Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater stability, savings, and predictability

Read More

What separates Providence from other Las Vegas Communities?

Here, modern living meets traditional values, resulting in what has become the desired choice amongst all Las Vegas real estate options. In fact, every year since its inception, Providence has

Read More

Beautiful Providence Home 7564 Captain Lord Ct NV 89166

Best of both worlds, minutes from the heart of the Las Vegas strip and only miles from Mt. Charleston.First time buyer or move up buyers (No SID/LID), enjoy this beautiful Providence home and

Read More