Congratulations on your excellent credit score! That is an achievement many have not obtained!
I have loans with as little as 5% down...ideally, you would want to put at least 20% down to avoid mortgage insurance, but not many can do that! If you have 10% down and plan to stay in the house you want to buy for a while, you can pay your MI (Mortgage Insurance) upfront so you will not have the monthly payment.
Ironically, the lower you finance, or the more you put down, the higher your interest rate could be! Doesn't make sense, does it? Investors pay better rates to those who finance $150,000.00 as opposed to those who finance $100,000.00! I assure you, with your good credit, we can get you the best/lowest rate possible!
I would love the opportunity to talk with you and answer any and all questions you may have!
You can contact me at 832.419.2767 or 877.933.0036 X 300 or ask for Beverly.
My email address is firstname.lastname@example.org
I own Mylendingplace.com I can offer a loan up to 95% of the value of a home dependent on credit.
If you would like please visit http://www.mylendingplace.com and let me know if I can be of any assistance to you.
I hope this helps you. If you have any more questions, just email me or call me and I will gladly help you out.
Sera M. Smith
Mortgage Loan Officer
Sounds to me like you are in great shape to buy a house. The amount to put down is really up to you. My suggestion would be to shop the loan to get the best deal. Tell them you want to do a 90/10/10 or a 90/15/5 to avoid PMI. If you would like to know some reputable lenders other than banks I could help you with that.
Please feel free to call me at 512-217-4761 or email me direct at email@example.com.
Keller Williams Realty
1801 S Mopac STE 100
Austin Tx 78746
The down payment really depends on your unique situation and circumstances. For example a VA loan will finance 100% with no down payment required, but you have to be a veteran. The most common loan today with the least amount down is FHA financing which only requires 3.5% down payment. FHA is a government backed loan program and the mortgage insurance premium is usually cheaper than conventional. But again this may not be your best bet based on your unique situation. It also depends on where you want the payment to be and how much of a home you want to qualify for. My suggestion would be to talk with a lender who can do your loan in your local market. Talk with that lender and come up with a mortgage plan based on all your needs. The down payment is just one part of the overall decision on which loan program will be the best for you. If you are looking to buy in Arizona, I would be happy to speak with you.
Also, with an FHA loan, your rate should be the same whether you put down the minimum3.5% or 50%.
As to waiting until you gather 20%, that culd be foolish. If you can find a place to close on before November 30, the government will give you 8,000 after tax dollars. Combine that with very low interest rates and prices way below their highs and you have an almost unbeatable situation. Only if prices fall a little further can you do better and there is no guarantee of that.
There is a lot of information to answer here, so I will break it down for you. First, the lowest down payment you have to put down is 3.5% with an FHA mortgage loan. The smaller the downpayment, the higher the mortgage rate. If you can put down between 10 and 20%, then you will be better off with a conventional mortgage loan.
As for the PMI, there is a program or two out there that does not require mortgage insurance, but they are few and far in between. To answer your question on removing the PMI when you get 20% equity, Citimortgage's policy (which is more than likely similar with most companies) in their wholesale division is if the borrower wants to get rid of the PMI after the LTV was down to 80, they would have to refinance. However, if they choose not refinance, the LTV would have to be reduced to at least 75 in order for the PMI to be removed. In this scenario, obviously a new appraisal would be needed. You would need to call the servicing department of your servicer (who you send your monthly mortgage payment to) to get their policy on PMI removal.
You are accurate about the initial payments going mostly towards interest, rather than the principal balance. Because home values are so low now, they may start to rise again in the near future, so you can gain equity when that happens too.
I hope this information helps. Best of luck!
Total Mortgage Services