how much should you put down?

Here are some other questions I get a lot, "How much should I put down? Do I get a better rate if I put down x, what about y?". There are a couple different downpayment levels that will improve your rate.

If you have 20% to put down, that'll take care of having to get mortgage insurance or a second loan. This savings can equal hundreds of dollars a month and depends on your loan amount. If you have the 20% and are comfortable putting it down, this is a great option to take. If you don't have 20%, or have it but just don't want to put it down, 5 or 10 percent would be other good options.

5% will get you a better rate than 0% down, so I'd recommend that as a minimum downpayment. If you put down 10%, the rate will be the same on the first loan but your rate on the second (or mortgage insurance amount depending on which one you have) will be less.

Those are the main downpayment levels that will result in lower rates and/or payments when buying a home. There are different levels for investment properties and cash out refinances. Feel free to email me with any questions on those billconover@america-lending.com.

Have a great week!

100% hard to find

PMI (Private Mortgage Insurance) companies are tightening up their standards after getting hit with some heavy losses due to the national foreclosure problem. While conforming loan underwriting standards still techincally allow for 100% or zero-down loans they do require mortgage insurance. Roughly a month ago the PMI providers decided it was in their best interest to stop writing policies unless a buyer puts at least 5% down. So while 100% loans used to be quite the norm, now they're non-existant.

Although this does hurt some buyers trying to buy a home, overall it's good for the industry as the added oversight will certainly allow fewer bad loans to get approved.

Enjoy your Wednesday,
Bill