Down payments tend to scare people. Tens of thousands of dollars all at once? How will you ever afford it?
Truth be told, most people don’t put down nearly that much. The old 20 percent down wive’s tale is just that — a myth. While a 20 percent down payment will help you avoid private mortgage insurance, it’s not required by any means to purchase a house. In fact, you can purchase a home with as little as 3 percent down (or in some cases, no down payment at all).
Waiting to buy a home until you have 20 percent saved up can be a dire mistake. Not only will trying to save that much limit your cash flow, but it will also impact how much cash you can put toward retirement, your children’s college tuition, paying down debts and other important financial goals. It also means more time in the ever-costly rent race.
If you’ve been delaying homeownership, look into low-down-payment mortgages, down payment assistance programs and other options before pushing your dreams back any further.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports