buyer tips: Is a large downpayment always better?
- 09/16/11 05:35 AM
Many buyers think they need huge amounts of cash for a downpayment, thinking that will save thousands in interest and lower your monthly payment in addition, you won't need to buy mortgage insurance if you pay 20% down. Fact is, most people do not pay near that much. Federal Housing Administration loans, with down payments as low as 3.5%, have become very common.
Here are a few reasons why a small down payment, even with the required mortgage insurance, can be a better idea.
The mortgage insurance premium that you pay may be offset by a lower rate. Many … (2 comments)
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