Borrowing

A 20% Down Payment

You should make a 20% down payment when buying a home. Even though this is a significant amount of money, it will save you a ton of money in the long run. Making a small down payment will end up costing you thousands of dollars in interest over the life of the loan. Currently, an FHA-insured mortgage has become quite…

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Borrowing

Don’t do it

Fannie Mae and Freddi Mac have started backing low down payment mortgages. You can get a home by putting only 3% down. Don’t do it! Remember the housing crisis that hit just a few years back? It occurred, in part, because of this type of low down payments. The low down payment sounds attractive, but if you don’t have the 20%…

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Borrowing

How much house can you afford?

How many of you have watched shows on the HGTV channel where people are looking to buy homes? The person tells the Realtor or Broker that they have a certain amount for a down payment and have been approved for a certain loan amount. The Realtor or Broker than says their total budget is the amount of the down payment plus…

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