Questions tagged [down-payment]
to be used for question that related to initial upfront payment made for acquiring an asset [typically used in context of Car or House] while the balance is funded as loan.
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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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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 ...
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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 ...
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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 ...
user296
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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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How is making a down payment different from getting a smaller loan?
What is the difference between these two things?
$100k loan with $20k down payment to buy a $100k thing
$80k loan with $0 down payment to buy a $100k thing
They seem effectively identical. But in ...
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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 ...
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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 ...
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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 ...
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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, ...
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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 ...
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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 ...
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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 ...
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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.
...
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I'm 20 and starting to build up for my mortgage downpayment, where should I put my money for optimal growth?
I have no credit, no loans, and am a contractor for $40/hr at a company and I expect to work here for quite a while (job security should be above average).
Every week, I allocate $300 to my Mortgage ...
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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 ...
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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 ...
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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 ...
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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 ...
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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, ...
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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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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?
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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 ...
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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,...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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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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 ...
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Why does a 5% down payment get me a lower mortgage interest rate than 20% down?
I recently received a letter from my (US) bank, saying that I was prequalified for a mortgage. There were two options, both 30 year fixed rate, for the same home price total:
5% down, with a 6.093% ...
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Do you have to take the exact loan amount your are pre approved for?
If you get preapproved for say, a 100k house loan, but then find a house for 110k, are you contractually bound to pay at most a 10k down payment? or are you able to still pay a 20% down payment of 20k ...
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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 ...
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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 ...
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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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If I put a large down payment (over 50%) towards a car loan, can I reduce my interest rate and is it smart to even put that much down?
I've saved a lot but not enough money for a car... I am looking to buy a nissan versa which is ~13000 out the door. I have ~11000 that I can put towards a down payment so I am just shy of the full ...
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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 ...
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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 ...
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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 ...
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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 ...
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Should I take a personal loan for my postgraduate studies?
About 6 months ago, I embarked on a Master's degree. Prior to this, I did the math on the postgraduate program and set aside about $31,000 on a separate savings account just for the postgraduate ...
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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 ...
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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 ...
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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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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 ...
anon
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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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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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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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