Most banks are asking for 25% to 30%. The better your credit score and the more money you put down, the better loan you will find. If you need a loan broker, I have an excellant person I work with and he always works hard to find my clients great loans.

That may not work, at least, for my case, that seller needs the money to move up to buy bigger home, a $2.5 million dollar house ...

Here is a wild thought. How about asking the seller to carry some of it.? for example: You put half down, seller carries 333K at the same rate as the first, bank gives you a conventional loan of $417K. That way you pay the lower conventional rate on $750K, instead of Jumbo rate.

Good deal for the seller too, She gets a great investors rate (beats 4% that banks offer on long term CD;s these days.)

I"m just weighing in on information already provided. 25% is considered a good downpayment (by lenders) and offers you the best loan programs to choose from.

$300,000 is a good down payment. Best of Luck! The Coach

You mean apart from all cash? Just kidding. :) Rates are still very pricey for the jumbo loans. Right now they are between 7.5% to 7.75%. That is on any loan over 580K. As to down payment you are looking at a minimum of 15% down. It would probably need to be structured with a 1st and 2nd.

The reason the $580,000 number is important is because conforming conventional loan limits are $417,000, and anything over that is considered a jumbo loan, with the exception of FHA financing, which bumps that point to $580,000. Borrowers who want to buy a home under $580,000 but over $417,000 get more attractive rates with FHA.

However, having said that, the buyers I work with who buy million-dollar-plus homes typically put down 30% to 50% to get more attractive interest rates (if not all cash). But right now, 15% is the minimum, which any way you look at it, $225,000 is still a quarter of a million dollars!

I was buying a $1.789m house earlier and I was told 25%, by licensed mortgage banker referred by the listing agent, is a normal no asset verification loan, whereas, with the best and fast deal, I was advised to put 30% down.

Hi Charles,
The cheap money is the cash you already have. Eventhough the money the bank lend you gives you tax break but it is only on the interest portion. You should compare the amount of money returned from the tax break and the amount of money you pay on the interest over the life of the loan. You will pay a lot more interest !!! So I rather put large amount of money as downpayment and invest every month in stock/mutual funds, saving and extra. It sure make life more enjoyable when your monthly payment is lower. I think a good down payment is the max. you can pay and still have some reserve money for emergencies!

Sincerely,

Homa

Homa

Dear Charles--The higher your down payment, the lower your interest rate, hence, making your payment more affordable for you. So, without know your situation, it is difficult to advise you on the best interest rate for you. Do you want to leverage your funds for investing? This would call out for a lower down payment. Do you want to maximize interest write off for your taxes? --lower down payment, etc., etc., etc. Have you sought the advice of a professional financial planner, preferably someone with your same goals and aspirations. That's a good place to start.

Decide before your loan is finalized. It's very expensive to change your mind further down the road.

Many "super jumbo" lenders will require a minimum down payment of 25% perhaps as high as 35% to receive best terms. Liquid assets will be required as reserves for mortgage payments in the event of income interruption. The greater the reserves, the better - at least 6 months' worth of mortgage, property tax, homeowner's insurance, and home owner association fees (if applicable). There are a few lenders who will offer lower down payment, but the trade off is usually higher rates and fees.

Ho Charles, The best Down payment would be whatever allowsyou to get the best loan program that suits your needs. If you need a good lender to helo you expllain the programs let me know

Kind Regards
Michael Barron
First Team Real Estate

Enough to get the lowest interest rate possible AND allow you to use any other cash for better investments/purposes AND doesn't break you with the payments.
It's a balance between interest rates (and mortgage interest deduction), financial planning and affordability/cashflow.