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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1
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3answers
358 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 ...
47
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6answers
14k 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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2answers
305 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, ...
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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 ...
5
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2answers
824 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 ...
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2answers
229 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 ...
2
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1answer
189 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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3answers
170 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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4answers
259 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 ...
4
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3answers
216 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 ...
3
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2answers
165 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
138 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
12k 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 ...
2
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2answers
161 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
340 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
408 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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3answers
3k 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. ...
0
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1answer
206 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
159 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
219 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
783 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 ...
19
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8answers
7k 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 ...
4
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1answer
609 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 ...
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3answers
4k 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 ...
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5answers
2k views

Buying a house, how much should my down payment be?

Let's say I have 500k in cash and would like to buy a 750k house. My burn rate (monthly spending) is around 4k per month, my income around 8k per month (after taxes, not including IRA contributions). ...
6
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1answer
290 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 ...
2
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2answers
130 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
720 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 :)
0
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1answer
240 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 ...
1
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1answer
217 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 ...
4
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6answers
58k views

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 ...
1
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1answer
47 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
389 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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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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1answer
153 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
244 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 ...
21
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9answers
33k 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. ...
5
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3answers
2k 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
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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 ...
4
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4answers
318 views

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 ...
6
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5answers
5k 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?
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4answers
10k 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, ...
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 ...
1
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1answer
1k views

Can having a co-signer on a house loan reduce the down payment required?

I have worked as a freelance web designer for 3 years before taking a salary job at a company 6 months ago. I have enough money saved up and make enough at this job to own a house but I doubt I will ...
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 ...
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
674 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
253 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
150 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 ...
7
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4answers
7k 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 ...