What is a good down payment for a $500,000 house?
Thank you for the answers
- Rick BLv 78 years agoFavorite Answer
- 8 years ago
There are a couple of factors that you must consider in order to get a good answer to this question. First what is your financial situation? If you are independently wealthy and can afford to pay for it in cash, in full, then that would be your best option. For an easy estimate, just figure for a 30 year loan, when its all paid off, it'll be double the cost of the house. So for your $500K, at the end of your 30 year loan, you'll have paid over $1,000,000. But you also have to consider the fact that the house will most likely be worth at least that too. Now if you're not independently wealthy, then you need to determine how much you can comfortably put down. So that down payment will fall in between a range of $100,000 (20%) and less than $500,000 (Paid-In-Full). So you 'll need to talk with your mortgage broker to determine what amounts will reduce interest rates. Do the math and determine what you're comfortable with. Another factor to consider is the length of the loan. The shorter the loan, the higher the monthly payments. But you will save a considerable amount in the long run. If it's an investment property, then you will need 25% down and be able to have enough in reserve to cover other assets for descent amount of time (3 months reserves for your primary residence. 6 months for each other investment property.) So in short speak with your lender about what's best for you financially.Source(s): I eat down payments for breakfast
- 8 years ago
Good for you, good for the bank, good for the loan? From who's perspective are you talking about it being good? Ya gotta specify for a good answer.
Hell, if I were a seller and you offered to pay me cash/NO downpayment then I would consider your offer good. If you're piss poor and barely have enough money to buy groceries $20 might be as good as you could offer. If you offered the typical 20% down, a bank would say that's good enough assuming you have the finances to pay for such an expensive house. Maybe this house isn't right for you or your finances if you are this perplexed about what's "good" in the deal-not to be mean but you should be better prepared for the whole process if this is such a big issue. Trust me, the money is a big issue but it's pretty cut and dried compared to so many of the other issues in a home purchase. Study up, learn the process, get a good realtor, shop for good loan offers, know what you really want/need, and you'll be ready to hit the ground running!
- SlumlordLv 78 years ago
20% is always a good downpayment for any owner occupied purchase (30% for an investment property). Of course you need to have 100K sitting around to swing it. FHA loans will go for only 3% down so don't feel like you have to have 20% just to buy a place.
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- A HunchLv 78 years ago
For a property at that amount, you will probably need the 20% downpayment. Which brings the loan down to $400000. If you don't earn about $133,000-$150000 per year, you will not be able to purchase the property (your income ratio is too low). The only way to change this is to increase the down payment.
- 8 years ago
- Smarty PantsLv 48 years ago
$250,000.00 would be good.