My first home that I bought was a condo in a very expensive area and I put 10% down because 20% would have been all the liquid assets I had. I'm glad I did, because prices shot up within a year due to a big company moving into town that drove up the cost of housing even more. Plus $77 a month in PMI is a lot less than the equity that I was building in owning my condo over five years. Sometimes the conventional advice about putting 20% down isn't best. If I had waited to save for a 20% down payment, I would have ended up needing to borrow more for my mortgage anyway.
I learned my lesson about 20 years ago. I sold a home and was in the process of building another home. Closed on the new home putting every dollar from the gains I made from the sold home into the new home and closed oct. 7th then lost my job by Jan. 10th. Being a single income household with 2 year old twins with a stay at home wife not nearly enough time to recoup a nest egg of a savings, and to top it all of they ran into a snag with my unemployment checks working in one state and living in another. Luckily it all worked out in the end and managed to still get the mortgage payments out on time, but it wasn't easy.
Now I learned from your mistake, thanks I was thinking to put every penny of gains I’m going to make from my house to the new house just to get that 20% down and avoid PMI
I bought my first home in 2019. I thought my only option was 20% down. No one advised me that I had an option to put 5 or 10 percent down. It was assumed that a conventional mortgage was 20% down at minimum. Thank you for your video.
@@ralphy1989 is there any money you have to pay back? My advice person told me that I either have to put 3% or 0% but I have to pay back when I sell or refinance
@@cheeto408 wow, what do you have to pay back? I never even heard of 0% down, except I mean maybe for veterans. I did 3% down. Fortunately with home prices going up so much lately, my next one, will be a much smaller house, and I hope to put down maybe 30% or at least 25%, which should keep my mortgage fairly low.
yes - I bet! That is where wite paint and new floors, hardware and lights make a HUGE difference. Looking for the perfect Pinterest home isnt always the best idea. :)
I am buying a house for $100,000- i put $25,000 down. so i am left owing the finance company $75,000. yet the company is charging me interest on $100,000. which was the value of the house. how is that possible ?
What happened is that the i was going to put down $25,000 . he finance company told me they were charging me interest from my $25,000 down. and i told the guy how it is possible that he will charge me interest from my own money. I did not end up buying the house.
@@c19commander44 did you end up buying another one? And did your realtor help explain that at all? I have a real good realtor who explains everything to me.
My first home that I bought was a condo in a very expensive area and I put 10% down because 20% would have been all the liquid assets I had. I'm glad I did, because prices shot up within a year due to a big company moving into town that drove up the cost of housing even more. Plus $77 a month in PMI is a lot less than the equity that I was building in owning my condo over five years. Sometimes the conventional advice about putting 20% down isn't best. If I had waited to save for a 20% down payment, I would have ended up needing to borrow more for my mortgage anyway.
Good call
I learned my lesson about 20 years ago. I sold a home and was in the process of building another home. Closed on the new home putting every dollar from the gains I made from the sold home into the new home and closed oct. 7th then lost my job by Jan. 10th. Being a single income household with 2 year old twins with a stay at home wife not nearly enough time to recoup a nest egg of a savings, and to top it all of they ran into a snag with my unemployment checks working in one state and living in another. Luckily it all worked out in the end and managed to still get the mortgage payments out on time, but it wasn't easy.
Now I learned from your mistake, thanks
I was thinking to put every penny of gains I’m going to make from my house to the new house just to get that 20% down and avoid PMI
I bought my first home in 2019. I thought my only option was 20% down. No one advised me that I had an option to put 5 or 10 percent down. It was assumed that a conventional mortgage was 20% down at minimum. Thank you for your video.
Yes, not all lenders are advisors. Some just go for the easiest closing.
Wow, your lender did you a disservice. Congrats on your home though.
I didnt put a penny down 😂
@@ralphy1989 is there any money you have to pay back? My advice person told me that I either have to put 3% or 0% but I have to pay back when I sell or refinance
@@cheeto408 wow, what do you have to pay back? I never even heard of 0% down, except I mean maybe for veterans. I did 3% down. Fortunately with home prices going up so much lately, my next one, will be a much smaller house, and I hope to put down maybe 30% or at least 25%, which should keep my mortgage fairly low.
So instead of answer the question she made up an example of "Use all your money" VS "make sure you have extra"
the answer is dont use all of your money, and put less down.
Best answer is by giving an example. If your skull is thick then the examples will probably not get absorbed by your brain🤡
How match down payament for thé first home
What if I can put 20% down and still have a 25K cushion? Is it worth it then?
potentially - I like to see 3-6 months of PITI and all monthly debts in reserves
Yes we can not be house poor , I can save 30k in 2 years ⁵
yes saving 30 K over 2 years OR alternative, buy at your max but not over and watch your equity grow much faster than you can save.
400k is average in az and holy cow ugly homes
yes - I bet! That is where wite paint and new floors, hardware and lights make a HUGE difference. Looking for the perfect Pinterest home isnt always the best idea. :)
Then your shopping for a house above what you should be buying
Not necessarily
Great ! thanks for you information
You bet!
Thank you so much love the free value :)
Glad it was helpful!
Thank you!
You're welcome!
Very good video
Thank you!
I,m putting 20% Down 😒🏡
Would you want to see alternative options?
Well if your 20% is 50% or less of your money then that’s ok. But if your 20% down pa literally everything you got then not a smart idea
@@MythicRealTrap great point 👍🏿🏡
I am buying a house for $100,000- i put $25,000 down. so i am left owing the finance company $75,000. yet the company is charging me interest on $100,000. which was the value of the house.
how is that possible ?
I assume you got your answer? I guess they're allowed to charge you based on the entire purchase price?
@@kbanghart I did find out they can only charge interest on the money i barrow not on my down payment money.
thanks for your info.
@@c19commander44 hey cool, so did you estimate wrong originally, or were they wrong and are they refunding you?
What happened is that the i was going to put down $25,000 . he finance company told me they were charging me interest from my $25,000 down. and i told the guy how it is possible that he will charge me interest from my own money. I did not end up buying the house.
@@c19commander44 did you end up buying another one? And did your realtor help explain that at all? I have a real good realtor who explains everything to me.
R you in toronto Canada
I am not unfortunately.