21 Aug First-Time Homebuyers and Down Payments
When you are purchasing a home, a mortgage down payment can seem like the most daunting piece of the puzzle. Many first-time homebuyers have less money to put down than other homebuyers, or they have incurred debt from student loans or credit cards. As your mortgage planners at Fairway Fort Lauderdale, we are here to guide you through each step of purchasing your first home. We will also make saving for and understanding your down payment an easier process.
By definition, a down payment is an initial payment made on a property while the balance of the property is financed. For example, if you purchase a home for $100,000 and borrow $90,000, your down payment on the home would need to be $10,000.
Since you’re the homebuyer, the size of the down payment is up to you. Different loan programs are available to accommodate down payments of various sizes, and our Fairway Fort Lauderdale mortgage planners can work with you on finding the best program for your needs.
If your down payment is less than 20% of the purchase price, many lenders require you to purchase private mortgage insurance (PMI). Fairway Fort Lauderdale can help you analyze your finances and decide how much you can afford as well as how much money you should put down on the home.
Are you interested in moving to the Fort Lauderdale area? We would love to help you purchase your home! Call Fairway Fort Lauderdale today to set up an appointment to discuss your financing options!