(Closed) Does anyone put down 20% anymore?

posted 8 years ago in Home
  • poll: What type of down payment did you (or will you) make on your home?
    20% : (61 votes)
    51 %
    10% : (21 votes)
    18 %
    5% : (17 votes)
    14 %
    0% : (4 votes)
    3 %
    Took out an additional loan for the down payment : (1 votes)
    1 %
    Other (please explain!) : (16 votes)
    13 %
  • Post # 3
    Member
    5496 posts
    Bee Keeper
    • Wedding: April 2010

    We’re going to put 5-10% down..would love to put 20% down, but not sure we’ll have it in the next year when we buy a house. We just started looking at homes online a week ago and the prices are so good in our area that we don’t want to wait more than a year to buy. So if/when we find a great house for a great price, we’ll put down probably about 5-10%. 

    That’s fantastic you guys saved up 20% and got your house. 🙂

    Post # 5
    Member
    3125 posts
    Sugar bee
    • Wedding: December 2009

    I watched a House Hunters for a couple buying in 2007 in Atlanta – both just out of college, newlyweds, buying a $500,000 house with nothing down. ZERO. This is why the country is in the trouble we are these days! Who would LEND THEM THAT? I wondered if they were effected by the economic downturn and whether they were still in that house. Even if they were in school to become something lucrative, if they don’t have a down payment at least, they’re not made of money yet! You can start in a more modest house than that.  We put down .. i want to say 30-35%.

    Post # 6
    Member
    2208 posts
    Buzzing bee
    • Wedding: July 2010

    We put down 10%.

    Kudos to you for saving for 20& in the Chicago market! That’s a lot of money (I assume).

    @ Melissa: we bought right before the credit crunch got huge, but after the bottom fell out of our local market (Sacramento was one of the first to crash). Banks were just starting to restrict lending, and Fiance was still approved for $450,000 with less than 10% of that amount to put down. We of course bought a house for much less, but it still amazes me what they were willing to lend. The monthly payment after tax insurance would have been more than half of take home income.

    Post # 7
    Member
    2004 posts
    Buzzing bee
    • Wedding: November 2008

    I suspect the result will depend on the price of housing in your area, particularly if you live in an area with expensive property. We are saving up about 10% to buy our first house, but if we were to buy in another city with cheaper prices for the same amount of house, the money that makes up our 10% would actually be about 25% of the house price.

    Post # 8
    Member
    651 posts
    Busy bee
    • Wedding: May 2012

    Not purchasing a home at this time, but we intend to save atleast 20% when we do purchase a home…the whole 0% down/loan for downpayment is what got us into this whole crisis anyway!  Terrible that they’d let anyone actually do that. 

    Post # 9
    Member
    11 posts
    Newbee
    • Wedding: June 2010

    While you can get away without putting 20% down, you have much better perks in terms of if you want to refinance.  We closed at 6% and rates went down to 4.75 in our first year so because we had put 20% we were able to get that rate. Friends of ours weren’t because they didn’t have enough $ into the house.  Food for thought.

     

     

    Post # 10
    Member
    2090 posts
    Buzzing bee
    • Wedding: August 2010

    We put down a little more than 20% down (note for honesty’s sake: by “we” that really includes FH’s parents, who each contributed a sizeable amount of the down payment).

    I don’t know if you “need” 20% anymore, but I personally wouldn’t be comfortable putting less than 10% down, and I’d prefer to put down 20% to avoid PMI. (I don’t know if all loans do PMI, I’m a little house-loan uneducated).

    Post # 11
    Member
    558 posts
    Busy bee
    • Wedding: August 2009

    Our goal is to have 10% down when we buy a house. In our market, and our price range, that’s about $12k. Which is going to be really tough for us, considering that $12k is HALF of my yearly pay. 🙁

    Post # 12
    Member
    5496 posts
    Bee Keeper
    • Wedding: April 2010

    @Chelsea  Great point. That’s the same with us-our 10% down would be 20% or so for a comparable house in a cheaper area. Although our area houses are selling for great prices right now, we still live in a pricey area. Friends of ours can buy the same house in other states for almost half the price.

    Our problem is going to be selling our townhome. We’ll most likely take a loss on it-that’s our biggest factor as to what we can buy. And I’m worried our townhouse will sit on the market a long, long time…(We’re looking at 4 bdr/ 2 1/2 single family homes) 

    It’s a buyer’s market in our neck of the woods. There are deals to be had, but we aren’t rushing..we’re going to take our time.

    Yes, kudos to all of you who put down 20% or more. 🙂

    Post # 13
    Member
    1580 posts
    Bumble bee

    I agree with chelseamorning. It totally depends on where you live. A modest town house in my area is about $500,000. So 20% down would be $100,000, which would be half of a house in many areas of the country. Sometimes it makes sense to buy even if you don’t have the full 20%.

    Post # 14
    Member
    67 posts
    Worker bee
    • Wedding: December 1993

    We put down 10% as well. We would have probably waited longer and saved up more, but the mortgage rates were too low to pass up last year!

    Post # 15
    Member
    185 posts
    Blushing bee

    I put 20% down and so glad I did because with home values falling, it is a good protection from being underwater on your mortgage.  Plus, no PMI. 

    Post # 16
    Member
    5977 posts
    Bee Keeper

    We did 10% – we maybe could have done a little more since we got our house at a steal, but we were very comfortable with the mortgage payment and decided to renovate a few things instead. We’re pretty happy with that outcome!

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