Why Should i pay any Down Payments

Guest

I have enough money to down pay 20% of the loan but i think that why should i pay downpayments. Instead of that i can invest it in something that will give me higher return? What do you think.

Guest

Hi Tim,

See the decision is tricky and before deciding it you need to calculate variour elements the if you make down payment then at the expiration of your loan how much you will save and instead if you invest that money to some where else then what would be you return for that period.

But you need to be vary calculative.

Jelina

Guest

Hi Tim,

I think Jelina is right in saying that you should be very calculative.

In addition to it I will add some more points which are worth considering, like the more you put down, the bigger loan you can get from a bank. For example, if you put only 5% down, a bank might want to lend you up to $65,000. But if you put 10% or 20% down, the bank might be willing to loan you up to $78,000 or $100,000, respectively.

Also for a given house price, the more you put down, the easier it is to qualify for the loan. And lastly if you put 20% or more down, you won't have to buy Private Mortgage Insurance (PMI).

Let me know what you think about it.

James.

Guest

Thanks for that information mate.

Samantha · Posted: Sun Nov 13, 2005 7:53 pm Post subject: RE:

Hi Tim,

Welcome to MortgageFit Forums,

Jelina and James have indeed provided some very good information. I dont think there is anything more to add.

Its good to see that more and more people are stepping up to help the community.

God Bless You.

Thanks,
Samantha

All times are GMT - 7 Hours

Page 1 of 1