Homes for Sale Are Rapidly Disappearing in Lake Stevens, Marysville, WAThrough all the challenges of 2020, the real estate market has done very well in Lake Stevens and Marysville, and purchasers
Which down payment strategy is right for you when buying a home in Lake Stevens or Marysville!
Dated: March 20 2020
You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.
But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.
The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.
The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.
THE HAPPY MEDIUM
Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.
We are all about RELATIONSHIPS - RESULTS - SERVICE We are focused on providing you with the best results and service in the industry. We listen carefully to understand your real estate goals and work....
Latest Blog Posts
Looking For Home Design Inspiration for your Lake Stevens, Marysville home? 30 Free Resources For Ideas and How-To-TipsOne of the joys of owning your own home in Lake Stevens, Marysville is making
4 Reasons Why the Election Won’t Dampen the Housing Market in Lake Stevens, MarysvilleAmericans have decided who our President will be for the next four years. That decision will have a major
As the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next year in Lake Stevens, Marysville. This is,