First time home buyer help ?? if i put a big down payment will my mortgage be lower???????????????????
i want to buy a house that costs $200000 i have $70000 for the down payment would that make my monthly payments lower? also since i am putting 70000 down does that mean i dont have to pay a mortgage for a while since i put down a good amount? i would apprieciate it if both questions are answered thank you
- rpf5Lv 79 years agoFavorite Answer
Your first mortgage payment will be due 30 days after you get the loan. The bigger the down payment the less you have to borrow therefore a lower monthly payment. The bigger the down payment the better your chances are to qualify for a loan, it might also get you a lower interest rate. Don't forget to factor in escrow and insurance if required.
- VampireDogLv 69 years ago
There are three things that affect your mortgage payments: the amount financed, the term of the loan (i.e., how many years to pay off), and the interest rate. So the more money you put down on the house--all other things being equal--the lower your monthly payments will be. If 70K is all you have in the world, I would hold some back for expenses that arise when moving into a new home. But if the 70k is over and above other savings, then by all means lower your payments.
But no matter how much you put down, you will have to begin making monthly payments within 30 to sixty days of closing on the house.
By the way, you might try negotiating a more favorable interest rate with the lender based on the fact that you are making a down payment of 35% of the value of the house.
- Let me steer youLv 79 years ago
Yes, a big down payment will lower your monthly payments. Since you are putting so much down, you will also get a better interest rate that will also save you a lot of money over the life of the mortgage.
$70,000 on a $200,000 mortgage is a very good down payments. You are only required to put down $40,000 to avoid purchasing mortgage insurance. Most people would not put that much into a mortgage because you can invest the other $30,000 and it is also available for you to use in case of emergency. That's entirely up to you.
While it will lower your monthly payments, you still have to pay each month. You don't get to skip a few months because you put a lot down; mortgage payments don't work that way.
- EducatedLv 79 years ago
First add up all your typical monthly expenses to really figure out if you can afford to pay a mortgage on a house. In this economy I have heard Suze Orman advise people NOT to put huge down payments down on a house. Better to have savings or invest your money in bonds or something else secure.
Put a small payment down so that you have the extra money on hand in case you lose your job (even if you think it will never happen).
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- Anonymous9 years ago
Of course it will mean lower mortgage payments, because you are then borrowing a lesser amount.
No, it does not mean that you "don't have to pay for a while." You start paying right away - but those monthly payments will be lower if you have a higher down payment.
- nakamuraLv 43 years ago
a extensive down charge potential which you borrow much less so, definite your month-to-month charge would be decrease. No, the down charge has no longer something to do with the reimbursement schedule, your first pmt would be do beginning the month following last. in case you get a 30 year loan, then the pmts would be calculated as being equivalent quantities over 360 months.