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Replies: 25
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Standout [313]
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Mortgage down payment advice, 20 percent or other opinions
Aug 6, 2021, 2:22 PM
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My wife and I are getting ready to purchase a home, and I was wanting to consider all angles regarding the down payment.
Our last two home purchases we put 20 percent down to avoid PMI, but I know there is an option for 80/10/10 that avoids PMI.
What is everyones take on down payment amount. If we only put 10 percent down, the 10 percent we don't put down is a significant amount to keep invested elsewhere.
Fire away with your approach of how much you put down when purchasing real estate. Thanks in advance.
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Oculus Spirit [79611]
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I've always done 20% to avoid PMI, but for you it depends.
Aug 6, 2021, 2:30 PM
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We'll need to see tiddie pigs of your wife to know the exact percent you need to put down.
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Lot o points [164108]
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You can get 10% loans without PMI
Aug 6, 2021, 2:31 PM
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at least you could a couple years ago - Southstate Bank did them for both my sons.
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Oculus Spirit [79611]
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Interesting. Did they have to show
Aug 6, 2021, 2:32 PM
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tiddie pigs of their wives?
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All-In [26851]
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That's just crass.***
Aug 6, 2021, 2:34 PM
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All-In [34994]
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yes?***
Aug 6, 2021, 2:44 PM
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Oculus Spirit [87357]
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I got a 100% loan on first home in 2008
Aug 6, 2021, 2:43 PM
[ in reply to Interesting. Did they have to show ] |
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with no pmi and a favorable interest rate for the time. Hence the sudden crash is the housing market one year later.
AND I DIDN'T EVEN HAVE A WIFE!!!
When I closed on the house, my realtor gave me a picture of my future wife and said "I don't know if you are single, blah blah, my coworker saw you in the office the other day blah blah, this is her daughter..."
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Oculus Spirit [79611]
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How slutty was that pig?***
Aug 6, 2021, 2:56 PM
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Oculus Spirit [87357]
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5/10***
Aug 6, 2021, 3:01 PM
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Lot o points [164108]
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All-In [48337]
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PMI is a ripoff & getting rid of it later is a hassle.
Aug 6, 2021, 2:46 PM
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Do what you need to do to avoid it.
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Oculus Spirit [82126]
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Primary house or a rental?
Aug 6, 2021, 2:47 PM
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Primary? How much money you got? Put that down. I'm going for the 100% route next house I buy, unless its something really special I can pay off in 5 years or less.
Rental? Put the least you can down. If you can get rent from it that will cover PMI, put 0% down if the numbers work.
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Oculus Spirit [82126]
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Wait..you know who really knows this stuff?
Aug 6, 2021, 2:50 PM
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FBCoachSC® really knows house buyin'.
He's done it like 0 times without family support. Dude is a savant.
Of the idiot variety.
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All-In [31001]
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Meh…. Put what you can afford, it’s that simple
Aug 6, 2021, 2:55 PM
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Don’t go over 5% if it’ll hurt you too much immediately, but feel free to slap 50% down if you can. There’s no one size fits all when it comes to this kind of question. All I remember is we were putting 40% down and the first people we used still tried to add a PMI. We backtracked and started over with someone else. It’s insulting when you’re giving a bank $100k equity and they still say they need an extra $100/month in case we get behind on payments and they need to foreclose.
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Lot o points [157691]
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80/10/10
Aug 6, 2021, 2:56 PM
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So 80% borrowed
10% down out of pocket
What's the other 10%....Gofundme campaign?
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Standout [313]
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Re: 80/10/10
Aug 6, 2021, 3:08 PM
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lol, I like the gofundme idea
Its either a bridge loan, or a Home equity line to get the 10 percent
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Heisman Winner [136637]
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I always put down 100% but
Aug 6, 2021, 3:08 PM
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Lot o points [157691]
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LOL....peasant.
Aug 6, 2021, 3:09 PM
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Rulez08 posted his closing statement to prove that they put down 150% on their house. What you got to say now?
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Oculus Spirit [87357]
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Re: LOL....peasant.
Aug 6, 2021, 3:11 PM
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Orange Blooded [2986]
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I don't see anything wrong with PMI if you are doing
Aug 6, 2021, 3:10 PM
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something productive with the extra cash such as home improvements, "good" investments, etc. that offsets or makes the PMI interest worth it.
I've purchased with PMI a couple times so we could do home improvements. We also aggressively paid down principal to get PMI removed within a few years.
In your situation, sounds like a good option (to get PMI).
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Oculus Spirit [82126]
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Channeling my best FBmooch..."what about your equity?"
Aug 6, 2021, 3:14 PM
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Everyone knows you won't be investing that extra $150/month.
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All-In [32099]
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I think putting at least 20% down is more then about PMI....
Aug 6, 2021, 4:05 PM
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yes, PMI is something worth avoiding...how much is it worth avoiding depends on how much it is. The concept of you, the borrower, paying for the lenders insurance for in case you default and they can't recover the principle of the mortgage is something that I have a hard time stomaching.
Another aspect is the amount of equity you want to have in your home and the risk presented by your equity being too low. >=20% equity allows you to withstand a pretty big shift in the market before you might owe more on your house that it's worth. That risk all to often gets discounted.
Also, this sounds like your 3rd? home purchase. If you're making good deals and planning wisely and saving, if you can't comfortably put down 20% it begs the question of if you are buying more house than you can afford. With 20% down, what % of your take-home pay is the mortgage payment going to be?
You asked for opinions...directly comparing the return on 10% invested vs 10% down-payment has to include risk. It shouldn't just be PMI% vs Investment Return%.
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Oculus Spirit [82126]
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There's a another way to look at that too.
Aug 6, 2021, 4:47 PM
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If the market tanks and then for whatever reason he can't make the payment, he's out less money if he has to walk away from it.
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Oculus Spirit [83459]
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Do the 20 down because market so high right now.***
Aug 6, 2021, 4:08 PM
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All-In [47179]
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Dude, are you dumb? Just pay rent***
Aug 6, 2021, 5:10 PM
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All-In [40410]
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I has a confuse, please to be assplainin?***
Aug 6, 2021, 7:48 PM
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