What is my down payment?

Various types of loan programs exist that offer various combinations of down payment, interest rate, mortgage insurance, and payoff schedules.

Some loan types require a minimum of 3% down payment (FHA Loans) or 5% on conventional loans. Veterans can purchase with no money down (VA Loan). Putting down as little as possible allows you to take full advantage of the borrowing leverage and tax benefits of home ownership. Mortgage interest and property taxes are fully deducible from state and federal income taxes.

Buyers using a small down payment have a reserve for making improvements. It may be more prudent to make a larger down payment and thereby reduce the amount of debt that must be financed. The term of the loan has a tremendous impact upon the amount of principle paid on the loan each month. The difference in equity pay down between a 15 year fixed loan and a 30 year fixed loan is astonishing.

When a buyer puts 20% or more as a down payment on their desired home, the Lender will waive the mortgage insurance requirement. Mortgage insurance is a requirement on all loans, with the exception of veterans guaranteed loans. That means a full years premium for the insurance is collected “up front’ at the closing of escrow, plus you will be paying it monthly as part of your principle-interest-taxes-insurance.

Should I put more or less down?

Talk to your lender about various loan scenarios and make sure you fully understand the near term and long-term implications of each approach.

Notice: This website contains general information about possible legal and financial matters. The information is not advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal or financial advice from your attorney, accountant, or other professional legal services provider. If you have any specific questions about any legal and financial matter you should consult your attorney, accountant, or other professional legal services provider

Our Track Record

I’m excited to announce that after 18 years of providing dedicated service, our clients have collectively saved over $10,000,000 in commissions! Among these savings are over $1,100,000 for clients who found unrepresented buyers and were able to avoid any selling costs. On top of that, we’ve distributed more than $330,000 in incentive rebates to over 100 satisfied buyers. These remarkable achievements are a true testament to our commitment to providing high-quality, cost-effective real estate services to our clients.

Tod G. Franklin – Realtor®, Broker, Owner, and multi-million dollar producer at DFWCityhomes

DFWCityhomes is an established and highly regarded Flat Fee MLS Listing Service company in Texas. We have been providing dedicated service for almost two decades delivering personalized service to each client. As the best Flat Fee MLS Listing Service in Texas, we offer affordable and excellent service, while our track record showcases our commitment to professionalism, integrity, and customer satisfaction.

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