PROs And CONs Of 5% vs 20% down payment on real estate

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  • Опубликовано: 4 дек 2024

Комментарии • 22

  • @ladytracy46
    @ladytracy46 2 года назад +12

    This is exactly what I wanted to hear very informative thank you you made up my mind I originally was thinking of putting 20% down but when u broke it down the way you did it makes perfect since to just put less its a tax right off anyways I get some back win win for me and I’m not totally broke 😁

  • @gustavogomez7331
    @gustavogomez7331 2 года назад +2

    Something tells me this is what a lender would say. A lender might prefer for you to pay interest with a lower down payment. It is like buying a car, some salesmen don't want you to pay in full but to me it makes sense unless you can't afford to do a 20% down. His first point on that was good but some home improvements can wait.

  • @carolmh28
    @carolmh28 3 года назад +4

    Exactly what I was looking for.

    • @MattTheMortgageGuy
      @MattTheMortgageGuy  3 года назад +1

      Great to hear! Thanks for stopping by! Subscribe and stay awhile... :)

  • @stevej9134
    @stevej9134 3 года назад +2

    Another great collaboration vid. Super informative!! Thanks for great & honest advice.

  • @abcxyz1636
    @abcxyz1636 Год назад

    This is a really good video specially for first time home buyers. However there is one small problem with 5% down. Sometimes buyers reject the offers only based on how much cash component you add to the offer.

  • @TheAnonymous916
    @TheAnonymous916 3 года назад +6

    Are PMI really that low though? What would you say the PMI average/estimate would be for someone with a 750 credit score planning to buy a $660k home in Sacramento? I'm debating if I should save up for 20% down, or take a shot at 10-15%, and have money left over for emergencies. If PMI is really as low as you say, I wouldn't mind paying an extra $100 or so.

    • @MattTheMortgageGuy
      @MattTheMortgageGuy  3 года назад +6

      The loan limit in Sac for conventional is $598k / SO if you put 5% down you are capped at about $629k purchase. At that price with 750 score I am seeing $124/mo in mortgage insurance at my favorite lender. **IMPORTANT to know --> MI factor is not the same with every lender. You might pay $200/mo at another lender. Make sure you know how your current lender compares in MI factor. Cheers!

    • @kbanghart
      @kbanghart 3 года назад +1

      Did you decide?

  • @ReynoldsRealEstate
    @ReynoldsRealEstate 3 года назад +2

    Great info Matt! I always enjoy collaborating with you amigo.

  • @hkawnsanhpauwung9702
    @hkawnsanhpauwung9702 3 года назад +2

    Hi Matt, we bought a 100 year old house in Roseville. We thought it would be just a light fixer but turn out we need major remodel. We are also thinking of putting some addition to be comparable with neighborhood.Can you help us with cash out refinancing or construction loan?

    • @MattTheMortgageGuy
      @MattTheMortgageGuy  3 года назад

      Happy to help look at a cash out refi. If you’d like some estimates send mortgage statement and guess of credit score to Matt@MattTheMortgageGuy.com
      I’ll put together scenarios and schedule a call to discuss.
      I’ve got great contractor contacts as well
      Cheers!

  • @akila219
    @akila219 Год назад

    So if the interest rates are high, it’s better to put a bigger downpayment 20% or a little more. I’m down here in San Diego ‘bout to purchase a New Construction home.

    • @uria702
      @uria702 Год назад +1

      for a new construction yes put as much down as you can. if it's an old house it's better to put 5% and put the rest into work in the house then get it reappraised.

  • @Benmeglei1
    @Benmeglei1 3 года назад +4

    Lender wants you to borrow more. Shocker.

    • @MattTheMortgageGuy
      @MattTheMortgageGuy  3 года назад +3

      Do whatever you like. I personally will take the sub 3% mortgage that is tax deductible and use the extra cash to invest where the return is much larger than 3%.

  • @imlearning1703
    @imlearning1703 2 года назад +1

    Opinionated

  • @larynOneka8080
    @larynOneka8080 2 месяца назад +1

    This video was not helpful at all. I have enough to put 20% down and have 2 years of mortgage payments in the bank. This video is only helpful to people who don't have enough money to out 20% down.

    • @MattTheMortgageGuy
      @MattTheMortgageGuy  2 месяца назад

      What exactly were you looking for when you clicked on video?