Burdensome student loan debt and a penchant for purchasing new electronics by 20- and 30-somethings can make saving up for a down payment on a home seem impossible. But Millennials and other potential home buyers may be surprised to discover that previous generations had money-saving challenges of their own. Consider for a moment that many of our valued elders did not have the level of opportunity to attend college and earn a high-paying job. Look further back and you may realize that the Greatest Generation suffered through the Great Depression only to fight World War II. Somehow, these … [Read more...]
What Are The Benefits And Drawbacks Of Putting 20 Percent Down On A Home Purchase?
Several generations ago, lenders required home buyers to have a 20 percent down payment in order to get a mortgage. While there were a few options out there for people who couldn't save this substantial amount, the reality was that for the majority of people, the 20 percent down was a requirement. It was the way to show that you were financially responsible enough for homeownership. And it was a strong way that the banks felt secure in making a home loan. Today, however, homebuyers have many options available to them as they shop for a new home, and those mortgage options mean that the 20 … [Read more...]
How To Successfully Use Your Down Payment to Achieve Your Home Buying Goals
When you are considering purchasing a home , understanding the lending guidelines regarding a down payment is important. Here are a few key tips to consider: Gifting of a Down Payment There are some programs that will allow you to use a gift for your home down payment. However, before you assume this, make sure you talk to your loan officer. Generally speaking, the lender will require the person making the gift to provide a letter stating the money was a gift and does not require repayment. Windfalls as a Down Payment When people hit the lottery or come into money through an inheritance, … [Read more...]
Eliminate These 5 Barriers To Saving For Your Down Payment This Month!
With all the expenses that go into monthly living and the temptations that come along with life, saving money for the down payment on your new home can be quite a struggle for many people. If you're having a hard time saving and are wondering what you can do to ensure a higher bank balance next month, here are a few things that may pose a risk to getting the home of your dreams. Forgetting To Take Lunch One of the things most likely to defeat your bank balance is the daily office trip to the deli or diner. Instead of opting for an easy but expensive $10.00 lunch, take a few minutes at the end … [Read more...]
How To Know If You Will Need Private Mortgage Insurance on Your Mortgage Loan
Have you heard the term Private Mortgage Insurance (PMI) when looking to finance real estate? You may be wondering what PMI is and how you know when you need to purchase it. These answers can be hard to find among all the real estate jargon you might be hearing lately. Below is the short version of what you need to know. What is Private Mortgage Insurance? Private Mortgage Insurance is an insurance premium required by some lenders to offset the risk of a borrower defaulting on their home loan. When you put down less than 20 percent of the real estate's purchase price, the lender will … [Read more...]
