Fast and easy HELOC
Before stretching to put 20% down, consider this:
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1) do you have enough cash reserves left over after closing?
2) do you have high interest credit card debt or a car payment that could be wiped out and save you $500-600/mo which could then be used to pay the house down.
3) is the seller only entertaining offers with 20% down?
4) in what kind of condition is the property? Does it need improvements/value-add/minor repairs?
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Keep in mind, when putting 10-15% dwn, PMI becomes much, much cheaper and can actually be paid all up front by the seller or lender. We do this frequently to help buyers improve their cash flow.
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In fact, on a $500,000 home with 15% down, PMI can be as little as only $2,350 TOTAL, only .55% of the loan amount.
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Best part? Then it’s easy to handle that half percent of the loan amount in a single premium, all up front, paid by the seller, lender, or even the buyer who can roll it into the loan itself.
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See my story highlights under TIPS for the math on this. ☝️☝️
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If all of these check out, then putting 20% down is fine. But these questions need to be asked and answered.
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This is for informational purposes only, not an advertisement nor a commitment to lend.
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