mortgage plannning: Big Down Payments Are Risky For California Home Buyers
- 04/27/08 08:09 PM
If you're thinking of buying a home in California, you might not want to sink everything you have into the down payment. In fact, it probably makes more sense to keep more money SEPARATE from the house equity, even if you have to pay private mortgage insurance or a higher interest rate.
Banks are asking for higher down payments since the credit crunch started. Wanna know why? It lowers the bank's risk. If higher down payments lower the bank's risk to market fluctuations, than who assumes that risk?
You got it; YOU DO !
Consider this article from the Arizona Republic:
Joan Shaffer is turning … (5 comments)
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If you're thinking of buying a home in California, you might not want to sink everything you have into the down payment. In fact, it probably makes more sense to keep more money SEPARATE from the house equity, even if you have to pay private mortgage insurance or a higher interest rate.
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