|
All agents are NOT alike! Find out why we are top real estate experts. Call us: 772-323-2010 Ext 219.
|

Get Free Presentation On Our Home Marketing. Before signing a contract with any real estate agent, make sure you know EXACTLY how your home will be marketed. Find Out More > View All Offers >
|
Compare
three mortgages at one time. Download TripleCalc now. It's
free.
|
David Bessette All Florida Realty Team
is one of The Top Selling Real Estate Experts Find Out More > |
|
|
|
|
First Time Buyers >The Down Payment
Perhaps no single decision in a real estate purchase has more variables than "How much money do I put down?" Conventional wisdom centers around either putting down as much as you can or as little as the lender allows.
If you put down a large payment, you get some leverage with the lender, such as little or no mortgage insurance, a good equity position, and perhaps a preferred mortgage deal. You will also have lower mortgage payments. One potential disadvantage of a large down payment is that you will be using after-tax dollars on which you could be earning interest. You will also have less tax-deductible interest.
When you buy a home with a low down payment, you will have more tax deductible interest, and your investment value percentage will increase faster. You will have little equity at the outset, and your monthly mortgage payments (and perhaps your interest) will be higher. However, you will also keep more of your own money in hand to potentially earn more interest in other investments.
|
| Q |
What does "contingency" mean in real estate?
|
| A |
A contingency is a specified event that must take place before a home purchase contract is binding; for example, a sale can be said to be "contingent upon the sale of the buyer's current residence." |
See More Real Estate Trivia > |
|

NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|