Downpayment for a house.

[Aimeedyan]

We did an 80/20. We do not pay PMI and have fixed rates on both loans. We wrapped almost all closing costs into our loan as well (house appraised for much more than the price we paid). Our 20% loan should be paid off in the next few years.

We both have great credit and didn't have a problem finding a lender for this.

 

[barkley]

might want to hold off awhile and take advantage of all the bank repos that the realtor associations and financial watchdog groups are anticipating due to those that did the zero down loans and other low down programs. they anticipate that those who planned on doing re-fi's now and in the future will find that the new credit card laws (where you have to pay a higher monthly minimum payment) will greatly change their monthly debt to income ratio and knock them out of eligibility to refi their existing "short term good payments-long term bad payments" home loans. some of the examples sited in publications around here show buyers who will end up with loans that exceed their monthly income (they bought anticipating getting raises, cola's and figured between that and doing a re-fi before the rate jumped they would be fine-smaller raises, no cola's and a rate set to jump a couple percentage points later-they can't cut the monthly house payment).

talk to a lender and a realtor to find out if now is the best time for you financialy.

 

[mickeyfan2]

I guess it depends now. At one time 20% was the standard, but not anymore. There are 0% loans and interst only loan. I don't recommend either. If you can do 10% and get a payment you can afford that should work.

 

[mickeyfan2]

PMI is not required for all loans that are under 20% for the down payment.

I suggest you speak to a loan broker, and they will figure out the best option for you.

We are planning to go house hunting VERY soon and we aren't putting 20% down and I broker told us we will have no PMI

You are probably getting an 80/10 with 10% down, 80/15 with 5 % down or 80/20 with 0% down loan. The 10/15/20 is a second mortgage that is used for the downpayment. The primary lender see you with a 20% down payment (borrowing 80%) so not PMI (principle mortgage insurance).

 

[puffkin]

We did an 80/10/10 loan. It worked out that the monthly payments were about the same as paying PMI, however we will build equity slightly faster in our home (by paying off the 10% loan faster) and we can deduct the interest on both the mortgage and the home equity loan.

I personally would never buy a home unless I could put at least 10% down and pay the closing costs outright. Then again, that is probably next to impossible in some markets and personal situations, but in general that is the rule I would stick to.