I've been there myself. You're tired of living in a rental, with your rent going up every time you renew your lease. And WANTING to finally get a place of your own.
You begin to look for mortgages, and find that you can get a house with as little as 3% down, in some cases, 5%.
So, you start to "Sort of" look at houses online, thinking "It's a $300,000 starter home,all we need is $15,000 and to qualify for a mortgage. So you put a away a bit more each month until you have $15,000 saved up.
Well, now you have a 30 year, $285,000 mortgage. Your monthly payment is $2,225. With principal and interest, with a 7% rate, you'll pay $683,000 over the course of the 30 year loan.
But if you wait until you can put down 25%, $75,000, you'll have a $225,000 mortgage, with a monthly payment of $1760, and a total payout of Payment and Interest of $540,000.
Savings in interest: $143,000. Even if you don't keep the house for the full 30 year term, you'll be in an equity situation quicker this way, and "own" more of the house sooner than a lower down-payment mortgage.
So, yes, it may seem like it's hard to do, but if you can put aside a bit more money, and save it, you'll come out quite a bit ahead versus a 3 or 5% down mortgage.
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source https://www.reddit.com/r/RealEstate/comments/y8s054/a_quick_tip_for_1st_time_buyers_dont_do_3_or_5/
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