• ​Schedule A Consultation Today!
Absolute Construction Inc.
  • 600 W 9th St
    Casa Grande, AZ 85122
  • Call Us:
    520-836-6511
  • Email Us:
    arcinc2002@gmail.com
  • Home
  • About Us
    • Testimonials
    • New Home Resources
  • Construction Services
    • New Construction
    • Kitchens | Baths
    • Finish Work
    • Tile | Stone
    • Roofing
    • Windows | Doors
  • Home Video Tours
  • Our Communities
    • Arroyo Verde Estates
      • Lot 5- 9293 W CHALCO MOUNTAIN COURT
    • Chaparral Estates
  • Home Owners Blog
  • Our Gallery
    • Before & After Remodels
  • Contact Us
  • Home
  • About Us
    • Testimonials
    • New Home Resources
  • Construction Services
    • New Construction
    • Kitchens | Baths
    • Finish Work
    • Tile | Stone
    • Roofing
    • Windows | Doors
  • Home Video Tours
  • Our Communities
    • Arroyo Verde Estates
      • Lot 5- 9293 W CHALCO MOUNTAIN COURT
    • Chaparral Estates
  • Home Owners Blog
  • Our Gallery
    • Before & After Remodels
  • Contact Us

What Are Some Ways to Afford a Down Payment on a House?

10/10/2019

0 Comments

 
Picture
The bigger down payment you put down, the less interest you will have to pay over the life of the loan. You will also not have to deal with private mortgage insurance if you can make a 20% down payment. However, getting into a mortgage with a lower down payment can still be a good deal.

Gifts

If someone is willing to give you a portion of your down payment, congratulations! There are a few rules that will make this easy to track at closing time. First of all, the gift needs to come with a formal gift letter confirming it's not actually a loan in disguise. The gift can only be 6% of your down payment, so you will still need to come up with some savings.

Mortgages with Lower Down Payments
The larger your down payment, the more equity you have at purchase and you will be able to get lower interest rates. However, you can still get a great house with a smaller down payment. Some jumbo loans allow a 5% - 10% down payment instead of the commonly touted 20% requirement. Understand that this will mean making larger payments for a longer period of time and paying private mortgage insurance (PMI) until you can get the loan under 80% of the value of the house. However, if you can buy the least expensive house in the best neighborhood, it's likely your equity will increase quickly.

Plan to Refinance
Once you've found your house and qualified for your mortgage, it's a good idea to set some new financial goals. Oftentimes, buyers find that their expenses actually go down once they purchase and they are able to both save a bit more money and build up equity. Cautious optimism is a good financial habit to practice once you've purchased your home. Be diligent about saving for emergencies. If you find you are able to make a larger monthly mortgage payment, consider refinancing to a 15-year loan by simply refinancing the remaining debt without taking any cash out of the house. Making an additional payment on the principal every month is also a great way to reduce the term of your mortgage. 

Home ownership is often a way to get your foot in the doorway of financial security. Once inside, you can build wealth by building equity in your purchase. A fully paid for house is one of the best gifts you can give yourself in the future.

​Looking to make your dream home a reality? Contact us for a
free quote!
0 Comments



Leave a Reply.

    Author

    Absolute Construction

    Archives

    June 2022
    May 2022
    March 2022
    December 2021
    November 2021
    August 2021
    April 2021
    March 2021
    October 2020
    June 2020
    April 2020
    February 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    May 2019
    April 2019

    Categories

    All
    Bathroom Remodeling Contractor
    Casa Grande Custom Home Builder
    Casa Grande Home Builder
    General Contractor
    Home Builder Casa Grande
    House Lots For Sale
    Kitchen Remodeling Contractor
    New Home Construction
    New Kitchen

    RSS Feed

Picture
600 W 9th St
Casa Grande, AZ 85122
Call:
520-836-6511
Email: info@absoluteconstructionaz.com
Who We Are:
  • Home
  • About Us​
  • Our Communities 
  • Home Owners Blog
  • Testimonials
  • Our Gallery
  • Contact Us
  • Home Video Tours
Home Construction Links:
  • Construction Services
  • New Construction
  • Kitchen & Baths
  • Finish Work
  • Roofing
  • Tile & Stone
  • ​Windows & Doors
Picture
Picture
Privacy Policy
© 2015-2022 All Rights Reserved. Absolute Construction Inc.
​Website By: Luzern Designs