5 ms·
I've been looking at mortgages over the past couple of months, and putting 20% down has near no effect on my potential monthly payments.
by tashoecraft 4y ago
I'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.