Home Buying & Financial Planning Tips for First-Time Homebuyers
December 22, 2017
Usually buyers who are young or early in their careers generally have less savings and access to funds for a down payment on a home. Still, this shouldn't stop you from contacting a mortgage professional for help.
Although putting a 20 percent down payment on a property can result in smaller monthly costs, this is often not an option for many first time buyers. Instead, a 3 percent down payment could be much more feasible, helping you on your path to home ownership. Here's an example:
A 3 percent down payment on a home that costs $250,000 is $7,500, whereas a 20 percent down payment is $50,000. The difference is in the costs of the monthly payments of the mortgage. A $7,500 down payment on a 3.5 percent 30 year fixed rate mortgage would result in monthly payments of approximately $1,600, inclusive of mortgage, taxes and insurance. A down payment of $50,000 would result in monthly costs of around $1,203. A 3 percent down payment has monthly costs that are $397 more expensive but requires $42,500 less in upfront down payment. Also, the closing cost will also need to be considered on top of a down payment, on a $250,000 property they would range from $2,500 to $7,500.
Speak with a professional to see what loan programs may be right for you. I, Heath B. Hall, help my clients with all their Mortgage Lending needs so they can enjoy the fun and excitement of purchasing real estate. Contact me, Heath B. Hall, at 727-222-9964 or start by Applying Here.
Heath B. Hall, with 1st Financial, inc. has been in the mortgage business for over 25 years. As a wholesale, direct-lender, and with a specialty in VA, FHA, Conventional, and USDA loans, you can trust that his team will work hard to get you the loan you need. Whether buying your first home, bigger home, or an investment home, 1st Financial, inc. is here to assist you every step of the way.
Contact Heath B. Hall today, and see if now is the right time for you to get started on your next home purchase. See how obtaining a home in Florida can be easy and the right decision.