How much money did you put down on your home?

posted 6 months ago in The Lounge
Post # 16
Member
7383 posts
Busy Beekeeper
  • Wedding: June 2013

20% however, we live in an area that is below the average COL and have very good jobs so saving that up didn’t extend our timeline for when we wanted to purchase.

Post # 17
Member
820 posts
Busy bee
  • Wedding: January 2019

5% and we do have PMI but our interest rate is really good and it’s a conventional loan. Basically rent is higher than our mortgage with pmi where we live…. so we will actually break even when you add the costs of maintaining a house. It’s also in a booming area that if we had waited we couldn’t afford. Houses are increasing in cost here faster than we can save, it is insane.

Post # 18
Member
1518 posts
Bumble bee
  • Wedding: August 2018 - Location

Our house is 670k and we are putting 15% down. 

We would have liked to do 20% but with furniture, blinds, appliances, and closing costs we just couldn’t do it. We got married last year and paid for most of it ourselves.

Post # 19
Member
1007 posts
Bumble bee

I’m moving from a less expensive market to one that’s pricey. To get a home in my price range there with the proceeds of my old home, I’ll only be able to put down 10%. That works, though. Just pmi for a few years. 

Post # 20
Member
133 posts
Blushing bee

23%. Went over 20% to avoid mortgage insurance, and then just put a little extra because I don’t like debt. MCOL area.

As some previous posters have noted, in a high to very high COL area you might be better off putting less down and paying insurance. You might – if prices keep going up. But as we learned a decade ago, prices can go down too. You have to think about if you’ll still be okay paying your mortgage if your loan is underwater. At that point it’s about devotion to the house rather than a financial decision.

Post # 21
Member
1951 posts
Buzzing bee
  • Wedding: October 2013

First house 340k we put down 5% (2013) No PMI. 

Current house 437k and we put down 20% (2017)

Post # 22
Member
5356 posts
Bee Keeper
  • Wedding: July 2018

We only put down 10% because first time buyer and … London. In the UK we don’t pay a property insurance based on how much you put down so that wasn’t a consideration. We bought a fixer upper so when we remortgage after the first 18 months our loan to value will be closer to 80% if not less after than short amount of time anyway. Obviously now we own somewhere we will have a lot more to put down on a second place. 

Mortgage rates are also so low in the uk that it isn’t usually worth waiting save a higher deposit. Our interest rate is about 1.6% so the considerable amount of money it would take for us to move a 10% bracket in our mortgage is better being saved or invested elsewhere. 

Post # 23
Member
768 posts
Busy bee
  • Wedding: June 2019

We live in Boston so our condo was brutal to save up 20% for (we paid 700k) and we delayed about a year in order to do so because it was worth getting no pmi. Our mortgage is MUCH less than our rent was, it’s been almost three years and our house has appreciated 100k

Post # 24
Member
162 posts
Blushing bee

Well for us the bank pretty much determines how much we should put down before they are willing to give us a loan. I have first time buyer account so I only need 10% saved. I think in general people need about 20% saved before banks would consider a loan. Either that or a guarantor. Guarantors are very common cause nobody can save the 20%.

Post # 25
Member
5820 posts
Bee Keeper
  • Wedding: May 2011

Our first house was in a high COL area and we put down just over 5% and paid PMI. Our house appreciated a ton in 5 years so I don’t regret paying PMI. We recently closed on our second house in your price range and put down 20%. We were prepared to put down more to get the loan within conforming limits but the jumbo rates were actually better.

Post # 26
Member
718 posts
Busy bee

Bay Area resident, sigh. We aimed to have 20% down + emergency cash buffer, which we saved over the span of 3 years. We were finally able to put down 30% with a large buffer remaining, thanks to additional proceeds from the sale of my husband’s townhouse.

I’m glad we put down 30%, because I’d hate our mortgage to be any higher than it is. Also, in our market, we were competing with all cash offers, so more % down = increased odds of winning the bid!

At the same time, loans up to a million (now it’s capped at 750k) used to qualify for mortgage interest deduction, so this was a minor incentive for us to keep our loan amount close to the old cap. We weighed putting more money down, but decided that with the relatively low mortgage interest and deduction, our money would be best invested elsewhere. 

 

Post # 27
Member
1384 posts
Bumble bee
  • Wedding: March 2018

We ended up putting 26% down. Add the closing costs and it’s closer to 35%. All from our pocket and no seller concessions-“as is”, which we didn’t learn until we went under contract. I hate our housing market but it’s ny so we’ve come to expect it. We had to search high and low for over a year till we found our hidden gem especially with our low taxes. Our mortgage is still lower then rent in the area so we’ll take it lol Good luck with your search! 

Post # 28
Member
2398 posts
Buzzing bee
  • Wedding: October 2016

I think we put 5% down. Housing is super affordable here. Idk. There must be super high earners on this board to have saved a couple hundred thousand dollars over a 2-3 year span. 

Post # 29
Member
432 posts
Helper bee
  • Wedding: March 2016

Same as pinkshoes, just under 30% to avoid jumbo. High COL area, but we bought our first home in our early/mid 30’s. Previously I paid nominal rent on my parent’s 2nd home with roomates (they eventually planned to retire there vs where they were 80 miles away). My husband before we met shared a room with 2 other guys awhile after college so he saved a lot slowly before we met in our late 20’s. We also lucked out with 3.75% rate when we bought and refi’d later to 3.5%.

I will say we bought 4 years ago and it’s really tough now and for people in their 20’s now to really save with COLI now. We both also graduated undergrad with less than 10k in debt in the early 2000’s before education costs really started skyrocketing. 

Post # 30
Member
146 posts
Blushing bee
  • Wedding: December 2012

Bought our house in the Bay Area in 2014 for $525 with 5% down. We were able to refi out of PMI after two years. Housing here sucks. If we waited till we had 20% plus some we’d be completely priced out. I feel lucky to have a house though, rent here for a one bedroom is more than our mortgage. 

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