U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old Yesterday, 10:22 AM
 
Location: North Texas
288 posts, read 121,335 times
Reputation: 166

Advertisements

Is it wise to put 20% down on a house?
Reply With Quote Quick reply to this message

 
Old Yesterday, 10:44 AM
 
Location: Virginia
3,490 posts, read 1,703,279 times
Reputation: 9388
Quote:
Originally Posted by Capitalprophets View Post
Is it wise to put 20% down on a house?
I don't know if it's wise, but it will get you a good mortgage rate and a quick close. At least it did with my recent home purchase. However, I will say that I'm looking forward to the closing on my old house in two weeks so that I can replenish those funds in my savings portfolio. That 20% down was a big chunk of dough!
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:53 AM
 
125 posts, read 40,829 times
Reputation: 93
Quote:
Originally Posted by Capitalprophets View Post
Is it wise to put 20% down on a house?
all cash is best.
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:59 AM
 
5,561 posts, read 6,245,773 times
Reputation: 14212
It is "wise" to put down 100%, or as much cash as you can reasonably afford.


(Less than 20% and you might incur additional costs like mortgage insurance)


Any other scheme and you are raising the overall cost of buying the house.
Reply With Quote Quick reply to this message
 
Old Yesterday, 12:55 PM
 
Location: Rochester, WA
4,031 posts, read 2,200,668 times
Reputation: 11131
Quote:
Originally Posted by Capitalprophets View Post
Is it wise to put 20% down on a house?

Is it useful to ask very specific questions of a general audience?
Reply With Quote Quick reply to this message
 
Old Yesterday, 04:18 PM
 
Location: Northern panhandle WV
2,466 posts, read 1,833,850 times
Reputation: 5087
For many mortgages 20% is the minimum to put down, where I am if you plan to rent out the house you need to put down at least 50%.
Reply With Quote Quick reply to this message
 
Old Yesterday, 05:18 PM
 
3,353 posts, read 7,343,613 times
Reputation: 4150
Quote:
Originally Posted by arwenmark View Post
For many mortgages 20% is the minimum to put down, where I am if you plan to rent out the house you need to put down at least 50%.
Where are you? Investment properties require 20% down, investment multi-units (1-4) require 25% down in America.

The relative wisdom of the move, IMO, has to do with your access to capital in the future. You generally cannot do a cash-out refinance over 80% of the value of the home (85% FHA, 100% VA, but for the most part it's 80%.)

To that end, if something were to happen in the future that required funds "now," and you sunk your savings into a 20% down payment, it's suddenly not a smart move.

I'm a huge fan of carrying the bulk of your debt in the house. Mortgage interest, for the most part, is a tax write-off, and mortgage rates tend to be lower than credit cards. So, keep open-and-empty credit cards, try to avoid a car payment, and if this can be facilitated by a 3-5% down payment on a house, so be it.

Mortgage rates tend to be very similar for higher-credit borrowers, on conventional loans, whether you put 3-5% or 20% down. You can avoid Mortgage insurance by doing a piggyback loan, such as an 80% first mortgage and then a second mortgage for 10%, 15% or (next month) the remaining entire 20% of the price.

Sure, equity is great, but not if it means carrying thousands in higher-interest credit card debt.

I personally am a fan of this strategy, but I totally understand that it can also make smart people uncomfortable, too.
Reply With Quote Quick reply to this message
 
Old Yesterday, 06:19 PM
Status: "I am in action mode." (set 18 days ago)
 
5,534 posts, read 5,594,440 times
Reputation: 4252
If you can, I would say yes but don't let it stop you if you don't. That would be a mistake.
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:46 PM
 
Location: S.W. Florida
1,811 posts, read 718,535 times
Reputation: 5002
Put down as much as you can spare but a minimum of 20% so you can avoid PMI.
Reply With Quote Quick reply to this message
 
Old Today, 01:36 AM
 
1,579 posts, read 616,304 times
Reputation: 3078
Quote:
Originally Posted by Capitalprophets View Post
Is it wise to put 20% down on a house?
Yet you spew property advice.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top