Home help??

Question

my husband and I plan to save roughly 60 grand for a house. What would be a good down payment on a house selling for around 100 grand?

(please keep in mind that we want some money left to decorate/fix up the house)

Answer 1

you wont have to worry to much about that if the home is just a 100 k and you have saved 60 k

Answer 2

If you are purchasing a house for $100K, please only put $20K down.  This will get you all the advantages you need, and leave you plenty of money for back up.  I estimate that your monthly payment including taxes and insurance should be around $635, if property taxes are about 1.25% of the purchase price.

Answer 3

FHA loans are available at competitive interest rates with only 3% down.  Talk to a lender about how much you'll need to put down to get the best interest rate.

How much YOU are comfortable putting down is really up to you.  Do you have other savings and an emergency fund?  I'm no financial adviser, but I personally would feel more comfortable putting less down down on the house and keeping the extra money in a mix of other investments that I could access more easily if I needed the money.

Answer 4

20% down will eliminate the need for mortgage insurance. It would be a good idea to put at least that much down.

Loan are priced such that smaller loans actually are a higher interest rate.  For some programs, $75,000 is such a level.  (It is like buying eggs.  The cost is higher for less than a dozen eggs.)  Check with you mortgage broker to verify this.  

Putting 20% down will allow for fix-up and decorating, plus give you plenty of reserve funds. That is important to consider, should there be any changes to your source of income.

Answer 5

Let me get this right... you're gonna save 60k and the house is only 100k? And your problem is???