Down Payment Options: Debunking The 20% Rule


If you haven’t been to my channel but… welcome!

I’m a Personal Mortgage Consultant in Washington State.

In different phrases, I get you financing to purchase a house and make it easier to make sensible monetary selections to your future!


Last time I used to be right here, I used to be saying – *clip to purchase, or to not purchase* – And in the long run, I positively satisfied you to purchase a house proper?

Today – the 20% rule.

Yes, I’m speaking about that pesky down fee to purchase a house.
Flash card – Down fee – The cash a purchaser offers to a vendor to lock within the house buy deal.

The remainder of the price of the house is paid by means of a mortgage mortgage. The lender views the down fee as proof you’re invested within the house buy. It exhibits you’re dedicated to purchasing the house and making all of your mortgage funds.

Conventional knowledge: “Oh, I need 20% down to afford a home and there’s no way I can afford that!”

What if I informed you there are different methods… methods the place you don’t put 20% down and nonetheless have the chance to purchase a house?

I gotchu!

There are many mortgage packages that permit lower than 20% down.
If you’re a first-time house purchaser, you’ll be able to select the FHA mortgage possibility.

This lets you put down simply 3.5%.

So as an alternative of needing $100okay for a $500okay house, you’ll solely want $17,500.

That’s an enormous distinction!

Now, should you don’t need an FHA mortgage there are standard loans that can help you put down as little as Three to five%.

It’s superb! I do know!

Here is what you need to know should you determine to place lower than 20% down on a house.

The lender will need finance insurance coverage on these loans. It’s Private Mortgage Insurance or PMI.

The price of PMI varies primarily based in your mortgage to worth ratio – that is the quantity you personal in your mortgage in comparison with its worth.

Expect to pay between $30 to $150 monthly for each $100,000 borrowed.

The PMI will be cancelled after you have constructed 20% fairness into your property.

Putting much less upfront means larger mortgage funds each month, however it additionally means you’ll grow to be a home-owner sooner!

Now, I’d be remiss if I didn’t clarify the advantages of 20% down:
– You’ll pay much less to your house.
– You’ll get a decrease rate of interest – one of the best charges are reserved for these with 20% down or extra
– You gained’t must pay PMI

The down fee on a house has a big influence on the whole price of your property.

But, in case you are trying to begin constructing fairness and proudly owning actual property – you don’t want 20% right down to make it occur.

Talk to me right this moment about your choices.

There are so many inventive methods to personal property.

You simply want to start out the dialog.

I’m your private mortgage advisor – and I’m right here for you each step of the way in which!

Thanks for watching!
Email: [email protected]

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