How much down payment?
In general, how much of a down payment should you have for a house that is around 150,000?
Most lenders will require you to put down 20% or buy mortgage insurance. If you can put down the 20% I would suggest doing so because you will not only pay less in interest, but save $50 a month or so on the insurance. Most people do not have the 20% to put down.
Gosh, I would never have thought a 20% down payment would make such a difference. I am planning on buying my first home at the end of the year, start of next, with my partner. We were going to have 10% in savings and then use our first home buyers, just to get through, although I guess if you have that extra savings, you have more chance of getting the loan then?
Thanks in advance
Even though the minimum down payment here is only 10%, I would advise borrowers to pay a bigger down payment that they can afford in order to minimise the interest they are ging to pay in the long run. Don't just pay the bare minimum as you are giving all your house "profit" to the banks.
