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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0answers
76 views

What is your gross annual income if you have just left your job?

I, US citizen living in the US, am looking for purchase a home. In looking up grant programs for downpayment assistance, I realized many have caps on gross annual income. My question is, if it is the ...
2
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1answer
77 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We originally made an offer with 90k down, but they countered and we accepted and want to do less now, 68k down payment to build a bathroom.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
62 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
114 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 ...
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0answers
50 views

What are the easy financing options available for down payment on home loan or how can I take loan to pay for the home loan down payment? [closed]

Can I get a loan or is any other lending/financing option available to arrange funds in order to pay for the down payment amount for the home loan.
38
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4answers
14k 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
11k 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
151 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 ...
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1answer
159 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 ...
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3answers
391 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 ...
48
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6answers
20k 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 ...
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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
398 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
328 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
217 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
294 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
260 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
199 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 ...
3
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2answers
203 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 ...
2
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2answers
143 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 ...
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2answers
169 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
403 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. ...
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3answers
439 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-...
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1answer
209 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
178 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
241 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
861 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
680 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
304 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
135 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 ...
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1answer
767 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 :)
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1answer
251 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
277 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 ...
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1answer
54 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 (...
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3answers
401 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
162 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
249 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 ...
18
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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
66 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
715 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
261 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
152 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 ...
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5answers
11k 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 ...
2
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2answers
268 views

Maximize my 401K and IRA, or save more for home downpayment?

I graduated a year and a half ago, and for the past year I have been maximizing my 401K and Roth IRA contributions. I further save for a house downpayment. Due to a recent surge in house prices, I ...
21
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9answers
34k views

Is there any reason not to put a 35% down payment on a car?

I went to the car dealership and was planning to finance a car under my brothers name, but since his credit is new AND he just financed a car 2 months ago, the salesman said it probably wouldn't work. ...
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0answers
262 views

Buying a home-Make as large a downpayment as possible, or keep cash to invest

I'm trying to decide whether to put a full 20% down on a new home (primary residence), which would eat up most of my cash from sale of current home, or do something like 10% down, 80% conventional (...
3
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1answer
10k views

What happens if the appraisal is different than the sale price?

As I understand: The purpose of a down payment is to minimize risk to the lender. For a traditional mortgage, lenders are willing to lend up to 80% of the value of the house. The appraisal ...
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0answers
2k views

Gifting Money for a downpayment

I am about to buy a house with my girlfriend and her credit is not established enough to get a good rate. I have excellent credit therefor, I would like to just hold/mortgage the note myself to get ...