102 votes

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

If you are going to finance a used car, it is frequently best to arrange financing before you even pick out the car. The easiest way I recommend is to talk to a local credit union or two. They'll ...
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  • 17.2k
95 votes

Why do sellers care about down payments?

They want to gauge the chance of a successful sale. There's nothing quite as frustrating when selling and moving to a new home as getting into escrow, doing all the paperwork, crossing off all the ...
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  • 23.8k
92 votes

Buy house with down payment, no loan, sell instantly

Wholesaling is basically the act of standing in at an auction and "buying" a home on behalf of a yet-to-be-determined buyer. You put a down payment on the purchase, and then, you go out, find that ...
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  • 16.8k
75 votes
Accepted

How is making a down payment different from getting a smaller loan?

They are no different, but the language you are using is different than what is typical. If you are buying a $100k thing (perhaps a house), and you only take an $80k loan, then you are necessarily ...
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48 votes

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

I grew up working in auction houses in a rural area - family owned on most of them. I was young - so I was not the auctioneer, nor the management staff. But I did see how things work and I did ...
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  • 4,690
42 votes

Credit score and financing new car

CC debt is My Hair Is On Fire!! debt, because the interest rate is so high. So... yes, you should pay that off first (unless you like subsidizing my 1.5% Cash Back Rewards and "Fat Cat Bankers" while ...
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  • 49k
31 votes
Accepted

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

It depends on the circumstances of the sale, the jurisdiction, and the auctioneer. It also depends somewhat on when or how the buyer backs out. Skip to the very bottom if you just want an answer to ...
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  • 16.8k
24 votes

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

It sounds like you're basing your understanding of your options regarding financing (and even if you need a car) on what the car salesman told you. It's important to remember that a car salesman ...
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23 votes

How is making a down payment different from getting a smaller loan?

Because if you make a down payment, you've got skin in the game. Think about a few scenarios: If you make a down payment and you decide to walk away, you are in trouble with the bank, but you have ...
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22 votes

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

The typical home mortgage is amortized to give you a consistent payment amount through the duration of the loan. What you'll see is that each month a greater portion of your payment goes to principal ...
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  • 64.6k
20 votes

Credit score and financing new car

You're asking several related questions - about credit scores, how to use cash, and how to buy a vehicle. If we break them all down and start with what to do with your $5k in cash - it makes sense to ...
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  • 16.8k
20 votes

Why do sellers care about down payments?

If the appraisal is less than the purchase price and the down payment is small, the bank might not approve the mortgage.
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  • 2,743
18 votes

Buy house with down payment, no loan, sell instantly

As mentioned in the comments, the book "Rich Dad Poor Dad" by Robert Kiyosaki is not undisputed among experts. Its advise should be taken with a grain of salt. When you want to participate in a real ...
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  • 21.6k
14 votes

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

As @dwizum points out in their answer it will depend on the circumstance of the sale and the jurisdiction. Aside from the down payment, the auctioneer will typically require evidence that you have ...
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13 votes

60% Downpayment on house?

Keep in mind, this is a matter of preference, and the answers here are going to give you a look at the choices and the member's view on the positive/negative for each one. My opinion is to put 20% ...
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12 votes

Is this the right house and time or do I need more time to save for downpayment?

There are far more questions to be addressed here than one answer can address. Let me work backwards, and start with the easy part - "I make $120K/yr, what can I afford?" You are making $10K/mo. A ...
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12 votes
Accepted

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

Are there any advantages to layaway? There are two main advantages. First, when you pay the initial deposit the seller reserves the item for you at a given price. This is helpful with unique ...
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11 votes

Buy house with down payment, no loan, sell instantly

This answer is here more to support what others have already said, so I will skip the part where I answer the question and go right to the part they don't tell you about. Buying a house at auction is ...
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  • 1,187
10 votes

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

I'm going to answer your questions out of order. Emergency fund: Depending on how conservative you are and how much insurance you have, you may want anywhere from 3-12 months of your expenses on hand....
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10 votes

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

No your assumption is incorrect. Its kind of like a "whichever is lower" kind of answer. A lender will loan 80% on the appraised value or sales price whichever is lower. Although in most cases they ...
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  • 225
10 votes

Roth 401k Contribution limits reset on job change

Rollovers are different than Contributions. You can rollover any amount as often as you want in every year, as it is basically just a transfer to an equivalent ('already taxed retirement') account. ...
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  • 37.1k
10 votes

Credit score and financing new car

Do not buy a car on credit. Ever. The fact that you have credit card debt makes it an even worse idea, but there are just so many reasons you should never buy a car on credit. For $5000 you can get a ...
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10 votes

Why do sellers care about down payments?

A personal story, previously shared in an answer to another question: For the last house I sold, the buyer was doing a no-money-down mortgage and had no money for a down payment. He was even ...
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10 votes

Should one always put 20% down?

the house's appreciation, if any, is unlikely to keep pace with average market returns is ENTIRELY the wrong way to look at this. The house's value will appreciate (or depreciate) based on its ...
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  • 6,228
9 votes
Accepted

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?

Can you reduce your interest rate? Talk to the lender. Maybe. Probably not. The rate reflects their perception of how much of a risk they're taking with the loan. But if all you're borrowing is $2000,...
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  • 31.8k
9 votes

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

If you know that you have a reasonable credit history, and you know that your FICO score is in the 690-neighborhood, and the dealer tells you that you have no credit history, then you also know one of ...
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  • 3,451
9 votes
Accepted

Possess full down payment at loan application or settlement?

The definite answer is "maybe." A bank can demand that you have all funds readily available X number of days prior to a closing. On the other hand, if you have steady income, and today's shortfall is ...
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9 votes
Accepted

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

There are a few reason this is different than the sub-prime mortgage crisis, and why doing this can be profitable: Interest rates for these vehicles is commonly far, far higher than 'regular' car ...
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9 votes

How much share should I get in our property

You need a neutral outside expert who will look at all the numbers, and then render a decision with all the numbers explained. The three current owners will have to agree that the split the expert ...
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9 votes

How much share should I get in our property

First, congratulations on the nice capital gain. (From now on, every time someone asks on here "What to invest in?!" I will send them to this question!) The three of you need to - literally ...
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  • 13.5k

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