to be used for question that related to initial upfront payment made for aquiring an asset [typically used in context of Car or House] while the balance is funded as loan.

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1
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2answers
101 views

Is it possible to put less than 10% down for a mortgage without resorting to an FHA loan?

My wife and I are considering buying our first house. We are pre-approved for a mortgage and, after months of seeing nothing but fixer-uppers or homes in questionable areas, we found a home we really ...
2
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2answers
43 views

Ensuring payment from client

How can I ensure that I receive my payment from a client if I am working from home for an international client (not employment; a fixed-price job)? I want to ensure that I receive payment for my ...
0
votes
2answers
199 views

Choosing between two car deals on the same car - NPV

This is basic question, but I have starred myself blind on it - I am stuck. I am not sure which formulae I should use. Here is the story. I am looking to buy a car. I have found two dealerships ...
3
votes
1answer
177 views

When to liquidate mutual funds for a home downpayment

I have about $18k in mutual fund assets that I am planning to use for a down payment on a home within the next 1-2 years. Combined cost basis for the assets in question is +$2,800. Right now the asset ...
2
votes
1answer
90 views

Can I add PMI to my principal balance when I take out a mortgage?

I'm considering purchasing a house, but I'd like to put as close to 10% down as possible, so I still have money left after the down payment for closing costs and for renovations and repairs. ...
3
votes
1answer
103 views

Do jumbo loan limits apply to the amount borrowed or to the property price? Can I avoid a jumbo with a higher down payment?

I live in an area of the United States where it would be very difficult to get a home for less than the $417,000 conforming loan limit. Unfortunately, jumbo loans seem to have a hard 20% downpayment ...
5
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3answers
1k views

Temporarily reduce 401k contributions to help save for a downpayment?

Question I am saving up for a downpayment on a house to be used in 1 year's time from now. I have $20K and I want to have $60K, I know I won't have all of it but I want to try. Even if I don't get to ...
1
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2answers
250 views

Mortgage points vs. down payment: How should I look at the break even point?

Some relevant questions are here: What are points on a mortgage? Should I pay points on my mortgage? First Time Home Buyers - Down Payment, PMI and Points I am aware that most people look at the ...
3
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3answers
228 views

How should we prioritize retirement savings, paying down debt, and saving for a house?

My wife and I are newlyweds. We currently have 6 months' emergency fund (3 months are currently in a CD, and 3 months in a high-yield savings account.) We are contributing to get the full match in her ...
5
votes
4answers
256 views

Should I save for a down payment or pay off school in cash?

I am able to save about $1000/month after all bills. I can either save this money for a down payment on a house, or pay for my (rather expensive) grad school program in cash and incur no additional ...
4
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3answers
517 views

Buying a home - whether to pay large downpayment or invest funds elsewhere?

I am buying a home in the U.S. and getting a 30yr fixed loan @ 3.25% interest rate. I would like to know if I should put down as much money as possible, or if I would be better off making minimum ...
2
votes
1answer
427 views

Roth IRA for down payment on first home (5+ years out)

I am interested in the idea of using an S&P Index Fund (probably Vanguard's) within a Roth IRA as a savings vehicle for a downpayment on a house. I have an emergency fund in an FDIC insured ...
6
votes
2answers
733 views

Do banks accept a large gift to me as a valid down payment for a house?

When I bought my house at the height of the bubble seven years ago, I remember having a conversation with a loan officer about the source of down payment money. It was stated to me that if I was ...
3
votes
3answers
457 views

Can my rent to own equity be used as a downpayment?

Here is my scenario. Homeowner wants $296,000 Will give me letter stating that I have 20% down payment as a result of rent payments being applied toward purchase price. My question is...does the ...
8
votes
9answers
4k views

New to investing — I have $20,000 cash saved, what should I do with it?

maybe someone can lend some advice. Background: I'm 28, married, and expecting my first child. Our short(ish)-term financial goal is to continue saving for a home. I'm wondering if I should take ...
3
votes
2answers
843 views

First Time Home Buyers - Down Payment, PMI and Points

My wife and I are looking to buy our first home in the next couple months and wanted to get an idea of what we are looking at. Right now we have about 80k saved up and want to put 10% down on a home ...
6
votes
2answers
521 views

To buy a house, is a 20% down-payment required for a mortgage?

My wife and I want to buy a house. The price is well within our means. The mortgage payment would be less than 25% of our gross income and we have no other debt, so we're comfortable with the payment. ...
1
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3answers
125 views

Using an interest-free loan as a downpayment on a house

My wife and I bought our house in Dec 2010 using the U.S. Federal Government's Neighborhood Stabilization Program, which essentially resulted in our city (Phoenix) giving us a $15,000 loan to cover ...
2
votes
1answer
536 views

First Time Home Buyer - How much down payment? Where to go for Mortgage?

I'm currently spending $15,000 a year in rent and gaining nothing in equity! This needs to change :). Looking to buy a place, I'm in the DC area so it'll be in the $500,000 price range. I have just ...
7
votes
3answers
915 views

How to get a down payment for your next home? Use current home as the down payment on the new one?

I bought my first home last year; it's my primary (and only) residence. I intend to pay off the mortgage in 5 or 10 years, then sell the house and buy a bigger one. The new one would cost 2 to 3 times ...
7
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3answers
187 views

Saving for a down payment on a new house, a few years out. Where do we put our money next?

We currently have two rewards checking accounts. We are nearing the maximums permitted on each account, after which we receive .5% and .25% APY. It's within our means to perhaps open another one, ...
5
votes
4answers
520 views

Where should I place money I'm saving for a home downpayment?

Roth IRAs allow distributions of up to 10k for "first time home buyers," after they've been open for five years. If you knew you were going to use the money for a downpayment in five years or less, it ...
7
votes
5answers
381 views

More money towards down payment versus long-term investments

Background: I am married with no kids (but anticipating them at some point) and no debt at all. My spouse and I have an emergency fund, both fully fund our retirement accounts, and are also keenly ...
12
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4answers
1k views

Is it better to use a 401k loan to make a down payment or to put less than 20% down?

I'm about to buy a house and am considering two options: Make a 12% down payment and pay for mortgage insurance Take out a 401k loan and make a 20% down payment I'm having a hard time finding ...
9
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2answers
2k views

A good investment vehicle for saving for a mortgage down payment?

I've calculated that I will be able to save approximately enough for a 20-25% down payment on a home (at my back-end-ratio affordability level) in the next 2-3 years. I'm maxing out contributions to ...
5
votes
4answers
1k views

Should I wait to save up 20% downpayment on a 500k condo?

Proper 2BRs start at $500k in our neighborhood. We're looking at buying, but I'm leery of the $100k downpayment. It would reduce our savings to 50k liquid and 75k in retirement. I can easily ...
7
votes
5answers
3k views

How much of a down payment for a car should I save before purchasing it?

I am thinking about getting a new or used car from a local dealer in town. I have worked and saved some money to use as a down payment for it. Some people have told me that I should save nearly all ...
4
votes
3answers
2k views

Does size of down payment affect chances of home loan approval?

Does the size of my down payment on a house affect the chances I'll be approved for a loan? Can a 50% down payment overcome a relatively low credit score?
20
votes
7answers
5k views

Should I pay more than 20% down on a home?

I'm starting to consider buying a home in a year or three. I'll have a lot of money available at that time -- perhaps enough to do more than the standard 20% down payment. I might be able to manage ...
16
votes
8answers
3k views

Should I wait until I have a 20% down payment to buy a home?

With an FHA loan that only requires a 3.5% down payment, I'm able to buy a home right now and comfortably afford the monthly payments. However, I know that means I'll pay PMI and more interest over ...
5
votes
3answers
9k views

Can I use funds in my 403(b) retirement plan for a first-time home purchase?

Can I withdraw funds from my 403(b) retirement plan without penalty, for the purposes of purchasing a first-time home? If not, are there other retirement plans from which I could withdraw without ...
5
votes
1answer
226 views

Getting on the property ladder: mortage, downpayment, fees? [UK]

Once I've got my finances straight I'd like to think about getting my own place, but what sort of money am I looking at to have under my belt before I can begin thinking? Is it right that the UK ...
10
votes
4answers
8k views

Will our hefty student loans affect our chances of getting a mortgage?

My husband and I live simply but we're content. I'm an avid budgeter and love finding ways to be frugal. My dilemma right now is that we've been able to keep our living expenses below what we make, ...
9
votes
5answers
719 views

Should I put more money down on one property and pay it off sooner or hold on to the cash?

I've a huge chunk of money saved up for a down payment on a property that I'd eventually like to pay off and use as a rental. The assumption is that the property value will go up substantially over ...