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

posted 8 years ago in Home
Post # 77
Member
7308 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

We put down 20% and never considered anything less. That means that we brought more than $100k in cash to the closing table. And yeah, our house hasn’t had anything done to it since it was built in 1987. It needs a lot of work. We need a new HVAC system, all bathrooms need updated, the kitchen needs updated, and the deck will need to be replaced within the next 5 years. It’s sad when that much money just buys you a fixer. But that’s the DC metro area.

Edit: I want to echo what Mrs. Louboutin said about a larger downpayment making for a stronger offer. We were in a competitive offer situation. Our offer won (after 2 others had been flat out rejected and another was on the near horizon) because we wrote a heartfelt letter and because we had a very strong financial package to back-up our offer. Our sellers were ready to go and priced to move. They didn’t want to deal with FHA or VA inspections and buyers who didn’t have the ability to “put their money where their mouth is”, so to speak. They were looking for the “right” buyer and our big downpayment and large earnest money amount helped convince them that we were “the one”.

Post # 78
Bee
1902 posts
Buzzing bee
  • Wedding: June 2012 - Franklin Plaza

We are currently in the process of saving up for our down payment right now and have decided that we will not put less than 20% down. Obviously the answer to this question is different for everyone, but this is what we feel most comfortable doing. We currently live in one of the most expensive areas in the US in terms of taxes and property value so we have decided to relocate in order to purchase something at what we believe is a more reasonable cost. We’re aiming to put aside around $75k for our down payment.

Post # 79
Member
1309 posts
Bumble bee
  • Wedding: December 2011

We put 10% down – but our bank worked it out with the seller, where the seller prepaid our PMI premiums. Basically it was included with our closing costs (which the seller also paid). So we don’t pay PMI. I definitely suggest asking whatever bank you work with if that’s a possibility!

Post # 80
Member
10450 posts
Sugar Beekeeper
  • Wedding: February 2014

We put down about 45% on our 525k house in Canada. We both have great jobs and lived for free at our parents houses for a year after graduating. And our parents paid for our university and cars so no debt for us.

Post # 81
Member
3457 posts
Sugar bee
  • Wedding: May 2012

100%.  DH bought our condo mortgage free for $310K and since then put about $50K into it with renovations.  We can sell it for $385K and we expect to buy a house worth about $800k with 50% down this time. We still have plenty of savings we could use, we just don’t want to throw it all into a house. 

Post # 82
Member
9123 posts
Buzzing Beekeeper
  • Wedding: August 2013 - Rocky Mountains USA

We put down 10%.  Yeah, we have to pay PMI, big deal.  It’s only half a percent, and in the meantime we have a great little house for a $700/month mortgage (definitely couldn’t rent for that in our town!), and we’re building equity at the same time.  Each to their own.  20% is ideal but doesn’t always work.  You also want to keep a spare few thousand dollars in case the roof blows off the day after you close.

Post # 83
Member
3080 posts
Sugar bee
  • Wedding: July 2014

We are saving now for a home and will definitely be putting down 20%. 

Post # 84
Member
213 posts
Helper bee
  • Wedding: October 2012

put as little down as  possible this was advice from many realtors. it doesnt make as big of a difference as youd think. use the extra money saved for things needed for the house

Post # 85
Member
79 posts
Worker bee
  • Wedding: September 2013

We put down 10%.  Our realtor advised us to avoid FHA if at all possible.  She said that sellers are more reluctant to accept an offer contingent on FHA financing because they make you jump through a lot of hoops and the inspection & appraisal standards are stricter.  Plus, we were only looking at townhouses, and the HOAs can cause problems.  Just for another perspective!

Post # 86
Member
3080 posts
Sugar bee
  • Wedding: July 2014

View original reply
@Happy2bMrs:  it would be probably between 75,000-80,000 for us (20%)

Post # 87
Member
1302 posts
Bumble bee
  • Wedding: September 2011

We put down 20%.  We live in Hoboken, NJ, just outside of NYC.

View original reply
@SthnBelle45:  “put as little down as  possible this was advice from many realtors. it doesnt make as big of a difference as youd think. use the extra money saved for things needed for the house”

This may or may not be true for your personal situation, but PLEASE don’t take financial planning advice from realtors.  Find a financial advisors.  Realtors are not motivated to keep your best financial interests in mind.

Post # 88
Member
346 posts
Helper bee
  • Wedding: May 2014

We’re also looking to purchase a house right now.  We live in Jacksonville FL and we’re looking to purchase in the st. augustine/ponte vedra area and so far the best that we have seen was a USDA loan… 0% down payment and no PMI payments.  The builder is also willing to throw in closing costs up to 9k and a gormet kitchen (yay!!)  So basically out of our pocket we won’t have to have any money up front to sign the papers.  ITs bizarre to me since there is a income cap, i believe it is a little over 77k.   Coming from NJ i have never heard of anything like this until we came to this state.

They consider this area “rural” even though it is by far NOT rural at all.  We would live 6 miles outside of city limits in a nice surburban area.  It takes time to find these sorts of deals but they are indeed out there.  We had no clue this was even a possibility under we actually met with the builder who mentioned this route for us.

Post # 89
Member
44 posts
Newbee
  • Wedding: September 2013

My Fiance is actually a mortgage banker. He’d say that if it is at all possible try to put 20% down to avoid PMI, especially now that mortgage rates are so low.  If I remember his lecture to our friend correctly (lol), you’ll be stuck paying PMI until you refinance AND have 20%. With rates at all time lows, you prob won’t want to refinance. We are building and will put down 20%  minimum and then will apply for a line of credit in case we need to pull on it in an emergency.  Everyones situation is different though and FHA is still a great way to build equity as oppose to sinking it into rent. Definitely a great time to buy if you can afford it, 20% down or not!

Post # 90
Member
10355 posts
Sugar Beekeeper
  • Wedding: September 2010

View original reply
@Klein2bReidy:  $300/month when you are buying in a market you can barely afford IS a lot. I don’t think you quite appreciate what kind of income it takes to support a $600,000 home.

If your home is destroyed in an earthquake, you still owe the bank the remainder of the loan. Over 90% of people in the bay area don’t have earthquake insurance because it’s SO expensive – and the deductibles are usually $70,000+.

I think you think you are more knowledgeable about the area and the market than you actually are. Less than 20% down means PMI, higher interest rates, and more money going to the bank. I’ll happily give my 20% down, thanks.

Post # 91
Member
353 posts
Helper bee
  • Wedding: August 2012

View original reply
@crayfish:  It doesn’t necessarily mean higher interest rates if you have excellent credit – and good lord, why are some of you getting so snarky about this?!

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