(Closed) What percent did you put down on your home?

posted 7 years ago in Home
Post # 62
Member
2211 posts
Buzzing bee
  • Wedding: May 2014

I put down 20% to avoid PMI, but I’m definitely not living in NYC, San Fran, or any of those other places with a crazy high housing market!  🙂

Post # 63
Member
277 posts
Helper bee
  • Wedding: November 2013

@crayfish: Even with a difference like that you are looking at a savings of 300 yes its alot but with the whole picture if your home is 500,000 going from 3300 a month to 3000 a month is not a HUGE difference when you are talking about 100,000 dollars down. You are better off saving your 100,000 and take the 30 dollar difference. Putting money down is benefical for only banks not for you. If something happens to that house Fire or earth quake and your insurance company God Forbid doesn’t cover it you are out 100,000. Now that maybe unlikely but I had a guy who put 500,000 down on a 600,000 dollar home and a sink whole ate it and the insurance company didn’t cover it so he is out 500,000 now who benefited? So in retrospect you may save a monthly figure but if you take what you put down divided by 30 years then 12 months you are probably not saving a whole lot.

Post # 64
Member
214 posts
Helper bee
  • Wedding: June 2012

We bought our house last year and put 20% down. I wasn’t comfortable buying a house and only putting 3.5% down.

Post # 65
Member
1509 posts
Bumble bee
  • Wedding: June 2010

@Happy2bMrs:  I’m willing to share.  We put 40% down. We purchased our house for $750K.  Our down payment was $300K.  We also live in a very expensive area.  

In regards to the OP, we put this much down to lower our mortgage payment.  We also kept quite a bit of cash saved up in case of emergencies, but plan to pay off our mortgage in its entirety in the next 7 years with DH’s bonuses.  If something were to happen and he was let go from his job, we wanted to ensure that we could afford our mortgage with him getting a new job making only a normal base salary commensurate with his salary without me having to go back to work as well.  

Additionally, we purchased our home from a home relocation company, which adds an extra step to the process.  We were late entering in to the negotatiations with the actual seller of the home so after they accepted another offer, they presented that offer (with ours since that is when we could also join) to the home relocation company and the home relocation company accepted our offer since it was so much stronger.  The offer was for the same amount, but we were putting twice as much down, which means that there was a much smaller liklihood that the whole deal would fall through.  

Post # 66
Member
873 posts
Busy bee
  • Wedding: August 2010

We put down 0%, with a VA loan on our current house.  We don’t pay PMI.  I also own a house I purchased in 2003, with no down payment as well.  Stopped paying PMI on that one.  Both mortgages have such low rates that the zero down payment doesn’t make the payments unmanagable at all (obviously, since we have two houses!).

Post # 67
Member
343 posts
Helper bee
  • Wedding: August 2012

We put down 25% for our house (in the UK). Mr Doorstopper had done a lot of saving Smile

Post # 68
Member
9053 posts
Buzzing Beekeeper
  • Wedding: June 2010

The average cost of a single family home in my city is $865,000 CAD (20% dp would be about $175,000). We ended up buying an Apartment 1.5 hours away from work for $250,000 with 5% down but knew we had stable relatively high income jobs and have paid down half our mortgage in five years (approx $4000/month mortgage payment).  Unfortunately the market crashed and we still stand to lose about $70,000 if we sold today, so despite the fact that we’re not technically “underwater” we certainly can’t afford to walk away with that muh loss and still had a reasonable amount left to put down on a house that better suits our needs. 

Post # 69
Member
353 posts
Helper bee
  • Wedding: August 2012

This is an awfully funny thing for some posters to get so self righteous about.

There are obviously pros and cons to both options – and hopefully people are smart enough to consult a mortgage specialist and a financial planner before they make their decision. The 3-5% vs. 20% is less of an important issue than making sure you know what your monthly payment is going to look like and can afford it right away (the biggest mistake people make is assuming “oh ill be making X more within 2 years, so I’ll just pay the interest for now until we can afford to pay more” – THAT is where people get in a sticky situation.

To get a decent house in this area, Im talking a modest 3br that needs updating, we’re looking in the 425-475k range. In the extra year or so it would have taken us to save up the 20% down, we’d have paid almost double in rent what we’ll end up paying in PMI. We’ve done the math, we know it works best for us.  

My advice would be to get a few different opinions and quotes from different mortgage companies, do the math with a “worst case scenario” budget, and decide whats going to work out best for you.

Post # 72
Member
13563 posts
Honey Beekeeper

@MM423:  Thanks for posting this! Just wanted you to know you aren’t alone in your situation. We don’t have 20% saved up yet — that would seriously take years — but what we’d be paying monthly to buy would be about equal or possibly even less than we’re paying to rent right now, so we’re considering and FHA loan and a lesser downpayment as well. Sure, PMI isn’t ideal, but the comparison here isn’t mortgage + PMI vs mortgage with no PMI, it’s owning (mortgage + PMI) vs renting.

Post # 73
Member
505 posts
Busy bee
  • Wedding: July 2013

We put about 25% down. It definitely helped our monthy mortgage payments!

Post # 75
Member
353 posts
Helper bee
  • Wedding: August 2012

@MM423:  Yep thats exactly how it would be for us too.  At least getting in to a home, we can make improvements gradually and build value in the house despite paying PMI. Renting for 2 more years to get the 80k saved up would pretty much be throwing money out the window.

Post # 76
Member
1251 posts
Bumble bee
  • Wedding: March 2009

We plan on putting down 3.5% with an FHA loan. We’re getting a good deal on our house so it won’t be high monthly payments and we can easily afford them.

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