Putting more than 20% down in today's market

Asked by Joey Difazio, 02647 Mon Jun 25, 2012

If I'm buying a $250,000 condo. Is there any reason I should put more than 20% down, if I can afford it? I am over 50 and heard stories about condo associations having financial difficulties.

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
Stevens & Ma…, Agent, Centerville, MA
Tue Aug 28, 2012
It would depend on a lot of factors. I would speak to your financial advisor and your mortgage broker to see what works best for you.
4 votes
I did, I didn't want to pay PMI.
Flag Sat Oct 20, 2012
Good answer.
Flag Thu Oct 18, 2012
Speak to a professional to find out what is right for you!!
Flag Fri Oct 12, 2012
Thanks for the info.
Flag Fri Aug 31, 2012
Great questions!
Flag Fri Aug 31, 2012
Richard Shap…, , Framingham, MA
Tue Aug 28, 2012
For a conventional loan you will get a slightly better rate with 25% down. 20% down will avoid PMI. If you contact me I can give you a run down on what lenders review concerning a condo association. Rshapiro at assetmortgage dot net
0 votes
Great response
Flag Fri Aug 31, 2012
Louis Wolfs…, Agent, Needham, MA
Mon Jun 25, 2012
Joey,

Its always nice to hear feedback from those that write the questions. Good luck and keep us posted.

Louis
0 votes
Agreed
Flag Fri Aug 31, 2012
Joey Difazio, Home Buyer, 02647
Mon Jun 25, 2012
Great answers...very informative...and I thank you all!
0 votes
Can't get over these historical low interest rates!!
Flag Fri Aug 31, 2012
Joe Arnao, Agent, Sanwich, MA
Mon Jun 25, 2012
Every condo is different. Due dilligence is required to make sure the one that interests you is healthy financially.
Putting more that 20% down gives you less on hand cash and with rates as low as they are, borrowing money is a great deal.
Your accountant is a good resource to evaluate your cash on hand position and tax implications.
0 votes
Great response Joe!
Flag Fri Aug 31, 2012
Louis Wolfs…, Agent, Needham, MA
Mon Jun 25, 2012
Most condo associations will have trouble as when they were formed, all costs associated with capital improvements have gone up and typically condo fee's don't go up to the same extent and therefore the need of special assessments. Depending on the property that can be very costly. How many buildings, roofs, elevators, brick repointing, paving, recreational areas, common areas, windows, painting, hvac and the list goes on.

As to putting down more than 20% depends on what you can do with the additional money and what you feel like paying on a monthlty basis.

Rates are low take advantage of them.

Many accountants feel you should borrow as much as you can for as long as you can for as little as you can. And take your cash and invest it.

I on the other hand, like to pay off my debt as soon as I can.
0 votes
Great response! How is the market in your area?
Flag Fri Aug 31, 2012
Denis DaSilva, Agent, Somerset, MA
Mon Jun 25, 2012
Make sure your buyer’s broker researches the association’s financials and reviews them with you. Check for any pending legal actions, and special assessments. It’s important that the association have enough in reserves to cover upcoming repairs and potential issues. Check that the insurance carried is acceptable for the worst case scenarios (Law suits, extreme weather etc.)
20% down is usually more than enough, follow your buyer’s broker advice as it may change depending on many variables. It’s my advice never to deal directly with a listing agent as they hold the sellers best interest at heart.
Denis DaSilva Broker Associate
Today Real Estate, Inc. 508-813-6875
http://www.MyCapeAgent.com
Web Reference:  http://www.MyCapeAgent.com
0 votes
Wen Farina, Agent, Reading, MA
Mon Jun 25, 2012
Hi Joey,
if the condo association is having problems I'd be careful, be sure you informed yourself well before committing. Get your realtor to help you with this and if you do not have one I strongly suggest you get a buyers agent asap since it does not cost you anything. The down payment really depends on you, the larger it is the lower your mortgage payments (and easier qualification) but your fluid cash would be of course lower (it all depends on your budget) but, depending on your situation, you do not have to put 20% down, you could do a 5% or even 3.5 depending on the type of loan (FHA, conventional ....) feel free to shoot us an email if you have any more questions. Good luck
Wen----info@wenrealty.com
Web Reference:  http://www.wenrealty.com
0 votes
great response!
Flag Fri Aug 31, 2012
Kevin Vitali, Agent, Tewksbury, MA
Mon Jun 25, 2012
That is a very personal question and varies on your overall strategy.

Most of my high net worth clients tend to put as little down on a home as possible as they can earn a much higher return on their investments.

20% definitely cuts out the PMI(private mortgage insurance) cost. Much more than that is really a personal decision. Are you still investing heavily or is the lowest monthly payment the most important thing to you... It is all personal.
0 votes
Great response! How is the market in your area?
Flag Fri Aug 31, 2012
Masha Sender…, Agent, Newton, MA
Mon Jun 25, 2012
putting 20% down cuts out the PMI (mortgage insurance... in your case will be about $100/month). more than that is really up to you - it would just cut down your monthly payments and give you more equity. If you are okay making monthly payments at 20% down (comfortably), then talk to a financial services professional about investing your money in other ways.
0 votes
Great response! How is the market in your area?
Flag Fri Aug 31, 2012
Search Advice
Search
Ask our community a question

Email me when…

Learn more