When buying a home, the down payment will make up the bulk of your upfront expenses. While most mortgage lenders offer you flexibility in the amount of your down payment, it's difficult to decide how much money to spend right away. While a higher upfront cost, a higher-than-minimum down payment has some significant advantages. Here are the main benefits to consider:
Typically, buyers who opt for a larger down payment have more options for mortgage terms. A higher down payment will often result in a lower interest rate, which can save you thousands of dollars over the life of your home. It will also lower your monthly expenses and allow you to pay off your mortgage sooner. The more money you pay up front, the less money you borrow, so it's important to compare the short and long term effects.
Private Mortgage Insurance (PMI) is additional protection for the lender. A PMI policy is only required if you borrow 80% or more of the home's purchase price. Therefore, a 20% down payment will help you avoid the additional ongoing expense of insurance dues and save you thousands.
Offering a larger amount of money up front communicates to sellers that you're a qualified buyer. It shows your level of interest and financial responsibility, two things that make a buyer less likely to back out of a sale. A large down payment can reassure sellers that you intend to take the transaction through to completion, and may also serve as a bargaining tool for things like closing costs or total purchase price.
20% of the purchase price has been a commonly accepted guideline for down payments for decades. However, it's not required. Should you opt to spend more or less on your down payment, consider the short and long-term effects of the decision to make a confident choice.
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First Albert would like to thank you for the opportunity to offer his services.
Albert originally from New York City enlisted to the U.S Marine Corps from 1992 to 2004 receiving the Navy & Marine Corps Achievement Medal Combat Valor serving in the Iraq War and earn a Bachelor Degree in Business Administration from University of Hawaii. Started getting involved in the Real Estate business from 2004 to present as a full time agent. Albert have found home owners and buyers really want two things from their REALTOR®, Executive Service and Results....
Albert specializes in the Los Angeles County, Ventura County and Orange County area and licensed in California. His services include being bilingual in Spanish, making it a point to keep his clients well informed at all time.
Albert vision of commitment is based on hard work, tireless determination, and a genuine love of helping people reach their goals with a successful tenure in the real estate industry. Albert know by sharing a strong work ethic, a tireless drive to succeed and a dedication to achieving goals, that anything in life is possible. For Albert, it is a Matter of Duty.
Albert's skills are Excellent Communication, Great Analytical, Critical Thinking ( thinking outside the box), Problem Solving Abilities, Strong Time Management, Organizational, Public Speaking, Negotiator, Team Player, Technology User.
That way, when you do meet, Albert can place his full concentration on your special needs and what's most important to you and your family. Together you and Albert will work as a team.
Albert is really looking forward to the very special opportunity to serve you in your Real Estate needs.
When the time comes for your next Real Estate decision, give Albert a call for a FREE consultation. You'll be glad you did.
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