3 ms·
It's also good for buyers with low net worth, but high yearly income. I got into the tech world 5 years ago, fresh out of college. Many of my peers can afford m
by dont__panic 4y ago
It's also good for buyers with low net worth, but high yearly income. I got into the tech world 5 years ago, fresh out of college. Many of my peers can afford monthly payments of $2-3k... but getting your hands on $100k cash for a 20% down payment takes time, even at decent income levels.
- tashoecraft 4y agoI've been looking at mortgages over the past couple of months, and putting 20% down has near no effect on my potential monthly payments.
- lotsofpulp 4y agoThe difference for most conforming loans (sold to US government) is that less than 20% down payment requires property mortgage insurance (PMI), which should add to monthly payments compared to a 20% down mortgage. Are you seeing PMI costs? Or are they being waived for you? Or is it a non conforming loan that does not require PMI? There’s a bunch of other possible reasons on this website. https://www.redfin.com/blog/what-is-pmi-insurance/ https://www.redfin.com/blog/what-is-pmi-insurance/
- margalabargala 4y agoBased on what numbers? At a 6.6% loan, putting down 5% rather than 20% will increase your monthly payment by over 25%, on interest alone, ignoring PMI.