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Any loan facility available in BOA
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Enthusiast
Mutual funds you have your eye on right now?
Mentor
How do I check my utilization?
What’s does “fill the gap” mean??
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How do you earn $500k and still feel average?
Is this for real?
Rising Star
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Will markets jump upwards the day Putin dies?
Rising Star
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Rising Star
The advantage of a bigger down payment is the buyers ability to overcome an appraisal gap and higher likelihood that the mortgage would get approved. I bought this spring and had a $90k appraisal gap. If someone was only putting down 5%, I would assume hat couldn’t cover a gap and would choose an offer with more cash.
Pro
I lost several homes I bid on earlier this year in LA due to this. A lot of people are putting full cash offers but just as many are putting a significant % down. I was told we had the highest offer 3x and lost to a cash offer, 40% down, and 60% down. When you’re dealing with jumbo mortgages in areas where there is a risk the house won’t appraise i think you need to at least have the ability to put 20% down, even if you don’t actually have to put that amount down per SA1s comment. I think in certain parts of the Bay Area not having the ability to put 20% down will hurt you unless you’re looking at less desirable homes that have been sitting on the market awhile.
What you put down on the mortgage should really affect the acceptance of an offer. The are getting paid the same by the bank. If someone comes in with a cash offer, you will be at a disadvantage
Just noticed I missed a not in the first sentence. Sorry
Rising Star
Higher down payment helps with PMI and lowest the monthly payment since you have some equity. If you can’t afford 20% may want to continue investing until you can for jumbo with better rates.
You’ll pay a significant price to get a new refinance with paying mortgage title insurance and closing costs twice most likely around $20-25k.
Do you refi with someone different each time? I'm in the process of refi and trying to leverage a relationship discount. Who do you borrow from?
You don’t need to put 20% down to have no pmi in sf and most HCOL places (just bought with 10% last month) so it’s a no brainer to do less
The minimum amount to avoid unnecessary fees. But also because the housing market is in a bubble just like everything else. Best if you're in a non-recourse loan state with as little skin in the game as possible so you can walk away if needed since these unsustainable price increases will eventually crash the market.
It used to be that home ownership was a source of pride. Now that everything including markets and money have been distorted in supply/demand/value thanks to federal reserve, I'd keep as much of your wealth as liquid as possible.
Not in an inflationary environment.
20% down to avoid pmi
This is not true. It used to be a requirement that you pay pmi for under 20% down but is not the case anymore for most jumbo loans. I shopped 4 lenders at 10% down and none required pmi
This Is something you should ask your realtor, meaning what buyers prefer. You can buy out the PMI…I bought a 475k house, put down 10% and bought out the PMI for under 3k. I could have done 20% but wanted to keep it for other investments and the 3k fee was worth it to me