(Closed) How much did you save?

posted 8 years ago in Home
Post # 3
Member
5755 posts
Bee Keeper

Nothing for our first house. We had a ‘total acquisition’ mortgage…zero down,closing costs only.

Second house, we used the profit from the sale of first home as down payment….approx. $60,000.

Post # 4
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

It all depends on what type of loan you are getting, if you do an FHA then you only need 3.5% down, but if you do a conventional loan then you need 20%.  Also, closing costs very greatly depending on the price of the house and if you are getting any help from the seller. If I were you, I would take the price at the top of your budget, figure out your numbers, and then work towards that. That way, you know for sure you have the money ready to go

Post # 4
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

It all depends on what type of loan you are getting, if you do an FHA then you only need 3.5% down, but if you do a conventional loan then you need 20%.  Also, closing costs very greatly depending on the price of the house and if you are getting any help from the seller. If I were you, I would take the price at the top of your budget, figure out your numbers, and then work towards that. That way, you know for sure you have the money ready to go

Post # 5
Member
1498 posts
Bumble bee
  • Wedding: August 2011

Nothing.  My parents are gifting me the money for the downpayment.

But, if we were saving for the downpayment, we would probably only save 5% of the home value so we wouldn’t have to wait for too long to get the house.

Post # 6
Member
814 posts
Busy bee
  • Wedding: June 2010

we recieved a goverment va loan, which covers the down payment… so nothing!

Post # 7
Member
1498 posts
Bumble bee
  • Wedding: August 2011

My SO is a mortgage lender, so I’m sure he would tell you to talk with a mortgage lender to see what kind of programs are out there right now and see the different options you have for getting a home.  That way you have a real idea of what kind of downpayment you need.

With the market the way it is today, you can probably get some (if not all) of your closing costs covered by the seller.  Also, to correct the previous poster, you can get a conventional loan if your downpayment is below 20%, you just have to pay Private Mortgage Insurance, which can be a nice chunk of change.  If you have 10% equity (downpayment or otherwise) toward your home, you may be able to qualify for a Home Equity Line of Credit that can pay the other 10% and get you out of your PMI.  The HELOC payment is usually a LOT less than PMI would be per month.  But not all banks have that kind of program.

Post # 8
Member
2090 posts
Buzzing bee
  • Wedding: August 2010

We put down 20% to avoid PMI – some of which was gifted from parents, some was savings, and a small bit was a loan from 401k. 20% equated to just over $50k.

Whatever amount you determine is a good amount for you, just make sure you have a few thousand saved for “wiggle room”, as unexpected expenses seemed to pop up right before signing for most people I know who bought recently – either with closing costs/moving costs/etc.

Post # 9
Member
3219 posts
Sugar bee
  • Wedding: November 2010

Keep in mind if you dont put 20% down you have to pay PMI and escrow your prop tax & home owners ins.

My 1st home my dad paid cash for me and I made payments to him. So on my 2nd (current house) I had quite a bit of money from house #1. I would never buy a house without having 20% but thats just me.

Also look into a 15 year loan you will be AMAZED on how much intrest you can save even if it means you need to buy a smaller house 1st. I am thinking about refinancing to a 15 year and will be saving about 90k in intrest!

Post # 10
Member
3762 posts
Honey bee
  • Wedding: May 2010

I heard that the cost of PMI has greatly increased just in the last 6 months.  We currently pay about $100 a month for PMI since we only put down 10% for our conventional loan.  Hopefully in a couple years we can get that off of there with an appraisal. 

We had saved about 15% and put down about 10%.  We were lucky that the sellers paid closing costs so we were able to use that money for all the repairs, etc we wanted to work on. 

Post # 11
Member
11327 posts
Sugar Beekeeper
  • Wedding: February 2011

We put down 5% about. We did FHA so we only needed 3.5%. I actually had about 10% in the bank + we got the 8k from the government which would’ve been about another 4% so we could’ve done like 15% but we decided to keep some money in the bank as an emergency fund in case either of us should lose our jobs and we also got some furniture for this house. 

Post # 12
Member
2475 posts
Buzzing bee
  • Wedding: June 2010

Our goal is to be able to put about $100,000 toward down payment for a new home.  We want to put down at least 20%, and part of that money may be used toward immediate remodeling of the home, depending on what we end up buying.  So, it could end up being more like 80k down payment, 20k in a room remodel. 

Post # 13
Member
329 posts
Helper bee
  • Wedding: November 1999

We went the FHA route and put 3.5% down.  The sellers paid the closing costs.

Post # 14
Member
331 posts
Helper bee
  • Wedding: July 2010

@mishelleez: We had looked into a 15 year loan, but the mortgage lender actually recommended against it. She suggested we get a 30 year loan and pay it like a 15 year, because we can always pay more than our payment, but never less (so if we had the 15 year loan and fell on hard times, we could be in trouble).

I calculated how long it would take us to pay off the 30 year loans making the payment of the 15 year loan (the interest rate was slightly higher on the 30 year) and it was only a few extra years and a few extra thousand dollars. So, we did the 30 year, but are paying extra each month.

 

As for the original question, I put 20% down on my first townhouse, using money gifted from my grandparents. I was then able to use the money from that sale to put 20% down on our house. I know I got lucky with the grandparent gift, but it was still important to me to put as much down as possible (while also having money saved for emergencies).

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