The easiest way to know how much down payment to use is simple. How much can you afford to part with ?
also remember, in case of an emergency, you be lite on cash available for an emergency if you use a lot of down payment.
All lenders are different, some want more down payment, others don't want or need as much.
I hope this helps
Again, I can't talk for other areas of the country but in Austin you almost always pay a large premium to build a new home with a builder. They always try to force you to use their financing because they will make sure the home appraises out. I have many friends who are appraisers and when they do the appraisals for new build homes they have to get comps from the builder because new home sales are not reported in the MLS and the existing sales are not supporting the sales price. All of my appraisers tell me that you overpay for new homes and I have known that myself from personal experience as well. You do get to choose everything you want but you do end up paying for that privilege. If you will be in the home for 8 years you will be OK unless the market is in another down cycle at that time when you are looking to sell.
Just something to think about... don't always assume your home is worth a lot more than what you are paying because if it actually was the builders would definitely be charging more if they could. If you want to check this out have a local Realtor pull comps that are as close to your home as possible and verify that your home is actually worth $50,000 more than you are buying it for... you may be surprised.
Before my clients and I start negotiating with the builder I do a detailed market analysis on the home and the amenities wanted so they will know upfront if they are substantially overpaying for the home they want. I let them know going in that in most cases they will pay more but I do my best to keep the builders honest. I also refund anything over the standard commission back to my clients to help with their closing costs. if you buy a new build home without a Realtor you do not get a better price, the builder just keeps the money so you should find a local Realtor you can trust to look out for your best interests.
Best of luck to you.
Best of luck to you.
10% of $300k is $30k. If you are not putting in 20% that means you are borrowing 10% more than what you didn't have to borrow. By year 8, you would have paid approximately over $10,000 in interest for that $30,000 loan. So... look at your investment plans to see if keeping the 30k in the bank now would make you more money than to pay the down payment.
Private Financing Program Specialist
$77 x 12 months - $924 then drop PMI could be a great option notify lender 20% equity in home
In many instances families can not predict future based on economy feel more comfortable with $30K in bank saving "rainy day" as referenced in prior blog posts.
You can also work with bi- monthly mortgage payments which reduce your balance on your home for life of mortgage or ownership.
As professional without knowing your entire financial records and back ground difficult make a comment for your best interest.
National Featured Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
It may not sound like the best financial advice but it is also the one most probable to save you any headaches and stress down the road. Good Luck in whatever you choose.
Bank of America Home Loans
Mike Gonzalez, REALTORÂ®
Listing Specialist / Buyer Representative
The Rivera Team at Keller Williams Dallas Northwest
Direct: (214) 783-4240 | MikeTX@kw.com | http://www.MetroplexAgent.com