Questions tagged [down-payment]

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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0
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3answers
349 views

Can a 20% down payment actually hurt you?

Goal: avoid overpaying for a house. Scenario: $200k house 800+ credit score Conventional 30 year loan at market rate Conventional loan requires 5% down minimum I can comfortably afford 20% down Loan ...
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1answer
87 views

Changing down payment

I am in the process of buying my second home and taking out a home equity loan to use as my down payment. I will take out 80% to pay off the remainder of my first houses mortgage and keep it as an ...
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3answers
146 views

Strategies For Generating 25-Year Revenue Stream (Instead of Mortgage Down payment)

I'm about to buy a house. Interest rates are low and I think it might make sense to invest the money I have, instead of buying cash/making a large down payment. I expect to live in this house for 25 ...
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3answers
1k views

How much share should I get in our property

In 2012, my brother, my mom, my dad, and I bought $349,000 property with 10% down to it. I paid the most towards the down payment, $10,000. Our mortgage is around $1,600/month and property tax of $2,...
4
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1answer
188 views

How much equity do I need for a pledged asset mortgage to prevent PMI?

I've been saving up to buy a home, and I've primarily grown this money with stock investments. When I do decide to buy a home, I'm not too fond of the idea of putting all my savings into a mortgage ...
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2answers
260 views

Why don't most unfurnished rentals in the US accept the option of paying rent upfront, instead of doing credit checks?

In the US at least, if you want to rent a home found on a typical rental listing site like Trulia/Zillow/Apartments.com/Hotpads, the owner (an individual or a property management company) makes you ...
2
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2answers
136 views

When buying a used car, and getting an auto-loan, need the down-payment be in paper bills?

Consider the following Scenario: you are buying a used car in the United States you get an auto-loan through a used car-dealer. Do large national car dealerships in the United States require the ...
2
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1answer
106 views

Could we put less down-payment then what is on the offer we signed to the seller?

We originally made an offer with 90k down, but they countered and we accepted and want to do less now, 68k down payment to build a bathroom. We're in escrow right now. Will there be a problem with ...
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1answer
71 views

Home Mortgage w/ Very Low Interest Rates: More or Less Down?

I know this question has been asked in different formats previously, but I'm curious about the variables that should go into the decision making process. I have enough in savings, excluding ...
3
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1answer
172 views

Is it possible to make larger mortgage payments to make up for a lack of down payment?

I have a new job, and my wife and I are considering buying a condo near my new work place due to the lack of adequate rental properties in the area. Currently, we have a guaranteed $10,000 that we ...
38
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4answers
17k views

What happens if you can't pay at an auction?

Based on this question about wholesaling homes - what happens if somebody purchases a home at auction, places their down-payment, cannot find a buyer, and backs out of the auction? I'm assuming they ...
27
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5answers
12k views

Buy house with down payment, no loan, sell instantly

I just read Rich Dad Poor Dad, and I have no idea about mortgages, loans or real estate. The author of the book describes a scenario in which a property is found for a cheap price (auction in this ...
2
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1answer
162 views

If buying a home for less than it's valued will I need a downpayment?

Currently my wife and I are living in a home is owned by her parents. We plan to buy it from them once we get other debts paid off and they're willing to sell it to us for the original price they paid ...
4
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8answers
1k views

Do monthly payments decrease on a mortgage later in the loan? [duplicate]

I am planning to purchase a home and all calculations and the banks say principal, interest, property tax, plus mortgage insurance will be close to $1000 per month. The calculator show that if I ...
0
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1answer
170 views

What scenarios to look for when bringing a large down payment for buying a house?

I have been looking to buy a house for about $120k. There are abundant properties for sale in this price. While house hunting, I suddenly came into an inheritance, so I can now afford a down payment ...
1
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3answers
400 views

Should one always put 20% down?

I can afford to put up to 25% down in the price range I'm looking at. Assuming average market returns and a high credit score of 800, should I always put 20% down, or should I put less? It would seem ...
49
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6answers
29k views

Why do sellers care about down payments?

I'm going through the process of buying a home now. Whenever I make an offer, the seller wants to know how much of that will be down payment. Why do they care? Isn't the combination of the down ...
8
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8answers
7k views

Credit score and financing new car

Little bit about my situation- Bought a car with cash about 5 years ago, at the time it was a year old. That car is now a total loss and I’m receiving about 5k for it from my insurance. I’m now in ...
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2answers
554 views

Can you use a small business loan as the down payment on a house?

My wife owns a small business and is looking to purchase a barn or small warehouse to store some of her rental items. We are also looking to purchase a new home for our family. Can she acquire a loan ...
3
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2answers
339 views

How to calculate the optimal downpayment + loan term when considering investing cash on hand

We're buying a brand new car at $60K. We technically have the cash on hand, but have opted to get a loan instead and keep the cash in investments. For the purposes of this question & simplicity, ...
3
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1answer
239 views

Relationship between down payment and mortgage interest

I just got a new job in a new city in Ohio (United States), and my partner and I want to buy a home roughly a year from now. We have a year to save up, and I am making a financial model to look at the ...
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4answers
300 views

What are some risk involved in buying an apartment with rent 2 buy?

Disclaimer: I am going to live in my city with a very low chance of moving somewhere else. I am currently looking for viable options for buying an apartment. The traditional way is to save up 15% and ...
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3answers
290 views

How to balance saving for retirement with saving for a house?

Situation: Married w/ kids, 29, about to finish grad school, no debt. Accepted a job offer with $87k salary and an employer contribution to an SEP-IRA equal to $13k/year. No additional household ...
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3answers
208 views

Personal Loan for Home Down Payment at Auction?

My recent wife and I have our eye on a nice home that is being auctioned off by an elderly lady who's moving in with her daughter. In our home search, we already have pre-approval for up to 250k FHA ...
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2answers
246 views

1/3 owner of home, can I use my part for down payment for mortgage and buy out remaining 2/3?

I inherited 1/3 ownership of my deceased parents' home. I want to buy out my 2 brothers. We are all in complete agreement of this. Can I use my 1/3 portion as a down payment toward a mortgage loan ...
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2answers
145 views

Is it possible for me to put 50% down and my partner take out a mortgage?

I'm able to afford 50% of the house in cash, but my partner and I want joint ownership. We have considered taking out joint mortgage, but my partner's median credit score from the 3 bureaus is higher ...
2
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2answers
174 views

How do car dealerships benefit from $0 down bad credit car sales?

This might be a better fit on the economics SE, but having browsed both I feel the body of knowledge here is more applicable. For as long as I've heard car ads on the radio or TV I feel like I've ...
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3answers
417 views

No down payment for a house

I'm 19 I don't plan on owning a home until I begin my new career as I'm almost certain they won't have me stay at my home field location. So as of right now I'm trying build up my emergency savings. ...
0
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3answers
551 views

Down payment of 15% vs. 20% - pros and cons

We are buying a home in CA and we would like to know if there is either any financial benefit or disadvantage to a 15% down payment compared to a 20% down payment in our situation. We are pre-...
0
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1answer
211 views

Receiving $30k from mother for house down payment [duplicate]

My wife and I are planning on buying a house in the near future. My mother has offered to give us $30,000 to put towards our down payment. I am interested to know what method to receive the money ...
6
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1answer
184 views

How to save house down payment as expatriate US Citizen

I am a US expatriate living in Israel and I am trying to save up in the next 7-10 years for a down payment on a house/apartment. The prices here are what some would call a "bubble" here but even if ...
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2answers
290 views

Real estate index funds as down payment savings

My wife and I are saving towards a first house down payment (already have $50k expecting to save another $30k with about 2 year target). Rather than leaving them in CD, I was thinking of investing ...
3
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2answers
988 views

Roth 401k Contribution limits reset on job change

I am in my late 20s and am a single filer in US. My current employer and future employer(July '17) both provide Roth 401k plans from the same provider(Fidelity). I am deciding between a)rolling over ...
4
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1answer
794 views

When should I use Layaway vs. saving up for an item?

I'm going to buy a watch for $100,000. The seller says that I can deposit $30,000 by wire-transfer, and then pay the whole thing off in 6 months, and after it is fully paid, I will get the watch. I ...
6
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1answer
318 views

Contribute extra to companies 401k with the intention of withdrawing it for house down payment?

My company has a generous 401k program, they contribute 50 cents for every dollar that I contribute, with a very high maximum contribution. Let's say I plan to contribute $10k per year for my ...
3
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2answers
142 views

How should I invest for retirement without a 401k or tax deductible IRA?

I switched jobs at the beginning of the year and my new job doesn't have a 401k plan for the first year of employment. Unfortunately I put a small amount of money this year into a 401k from my ...
1
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1answer
843 views

Why does the present value of a deposit decrease when the APR increases? [closed]

When calculating a down payment in excel, I noticed that by increasing my rate from 3.7% to 6.25%, the money I supposedly have to pay today decreases. Why is that? Thanks a lot :)
1
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1answer
265 views

Money in Japanese bank account, I'm in the UK, and want to buy a house in the UK; what's the simplest way?

I'm originally from Japan but am now in the UK. I have savings in my Japanese bank account which I would like to use for a down payment towards a house mortgage in the UK. The property I am looking to ...
2
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1answer
390 views

I want to invest and save for my house downpayment at the same time

I live in San Diego,CA and as most people know, housing prices are no t very cheap in here. Now, I hold some thoughts when it comes to money: You should always invest in 401k If you have leftover ...
1
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1answer
57 views

Should a new home loan pre-approval be made before offering less than expected?

If a buyer has a home loan pre-approval for an unspecified property, which specifies an expected amount of loan, down-payment, and price, what happens if they make an offer on a less expensive house (...
1
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3answers
409 views

Borrowing from my 401(k) for a home purchase downpayment?

I have money in my 401(k) I am investing to federal limits for both myself and my wife and I am primarily planning to use this money for my first house downpayment and my thought process is as below: ...
2
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1answer
167 views

How is my [UK] bank calculating mortgage porting affordability?

I have had a mortgage with my bank for ten years now, and want to move. I have phoned them a few times to ask about what I can afford, but each time the answer confuses me, and when I ask how they ...
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1answer
262 views

Jumbo loan amount before or after downpayment? [duplicate]

I want to take out a mortgage, but the value of the house is greater than $417,000, which is the amount when a mortgage becomes a Jumbo loan. I looked for more information on BankRate.com, and even ...
17
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8answers
7k views

60% Downpayment on house?

My fiancee and I are shopping for a house, and very fortunate to have the assets to allow us to make a healthy downpayment. We both like the idea of a lower monthly mortgage payment, specifically the ...
0
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1answer
67 views

Down Payment for new Company Car [closed]

Is there a limit on the amount a business can place on a down-payment for a business vehicle; in the United States of America? Total Cost: $25,000 Estimated Down-payment: $10,000 Is it commonplace ...
3
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2answers
1k views

Possess full down payment at loan application or settlement?

So, we just sent in an offer on a house stating how much we will pay in cash (down payment). I understand that this is transfered to the seller (along with the loan amount) at settlement. However, ...
4
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1answer
731 views

Understanding Gift taxes for mortgage downpayment

We have finally decided to purchase our first home and we plan to borrow interest free money from friends and family to pay off 20% downpayment and get cheaper interest/escape PMI. IRS says .. "The ...
3
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1answer
266 views

Using second mortgage on rental property to make down payment on primary residence?

I currently own and occupy a condo with ~75% LTV. My fiancé and I are planning to move to another city and buy a home in 5-7 years. We plan to put 20% down on that home, which will be a significant ...
4
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1answer
155 views

Taking out money on current home for down payment of new home

My real estate broker is advising me to borrow money against my current house for the down payment on a second house . I need to borrow about 50k. My current house has a principal balance of 80k and ...
2
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5answers
12k views

Pay off car or use money for down payment

I have a 3 year old car that has a blue book value of around $14k. I owe $7k on the car still w/ 2 years left to repay. I'm thinking about trading it in (need AWD... too much snow in Chicago the last ...