With so many loan options for low down payments popping up, why oh why would my mortgage professional tell me to put 20% down?! Firstly, have you heard of PMI? It stands for Private Mortgage Insurance, and you have to have it if you’re purchasing a home with less than 20% down. Simply put, lenders see borrowers as a bigger risk if they have less than 20% equity in their home. Beyond saving money on your PMI, when you put more money down, you’re borrowing less money, and will pay less interest over the life of your loan. Now, all that being said, at Mortgage Specialists we realize that not everyone has that kind of cash available. We are always ready to help find the best financial solution for you and your unique position.
Why Do Most Mortgage Professionals Recommend 20% Down? That’s a Lot…
© Mortgage Specialists.