Three things to know before deciding how much to put down.
¿Cuánto debo depositar en mi nueva casa? ¿Puede afectar mis posibilidades de obtener un préstamo? How does my down payment affect my mortgage payment? If you're buying a new home, you probably have questions about the down payment. Here are three things to know before deciding how much to put down.
1. Your down payment is considered an investment.
The bigger your down payment, the more invested you are, and the more confident your lender will be in approving your loan. Depending on the mortgage product you choose, a larger down payment could mean a lower interest rate.
2. Anything less than 20%, and you’ll be required to carry private mortgage insurance (PMI).
A down payment of less than 20% is pretty common these days, so there's no need to worry if you can't afford it. However, if you can afford to put 20% down, you won't have to carry PMI. And no PMI means no PMI payments every month, and that could save you thousands over the lifetime of your mortgage.
3. Your down payment can impact the rest of your mortgage terms.
There's no right or wrong answer when deciding how much to put down on your new home. Different loan programs require different percentages, ranging anywhere from 0% to 20%. Below are a few scenarios to consider:
*Rates are for sample calculations only and are not representative of current mortgage purchase rates, closing costs, estimated principle,interest, and insurance. To see today’s rates visit LMCU.org/rates.
**APR = Tasa anual equivalente.
**Estimated property taxes are used for example payments only and will differ based on the property location of the home.
****HOA= Home Owners Association. Calculations above do not include home owners association fees that may be applicable. Ask your realtor if home owners association fees are applicable for the property you are interested in.
See today’s rates or find out what your monthly payment could look like here.
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*Condiciones del programa de reembolso en efectivo de NestReady: el agente inmobiliario debe formar parte de la red NestReady. Los compradores recibirán un reembolso en efectivo del 0.50% del precio de compra de su propiedad. Oferta válida solo para compras; las refinanciaciones no califican. El monto se pagará después del cierre. Oferta sujeta a aprobación del crédito y aseguramiento, y sujeta a cambios sin previo aviso. El reembolso en efectivo puede ser limitado, prohíbido o reducido conforme al acuerdo de compra, a las restricciones del prestamista, a la Federal Veterans Administration, a la Administración Federal de Vivienda, y a los programas de préstamos del Departamento de Agricultura de los Estados Unidos, o a otras normas, leyes o reglamentaciones estatales o federales. La aprobación del prestamista es obligatoria para que se pague el reembolso en efectivo.
