Which is better when trying to buy a house?  Less Debt or More Down Payment?
930064
Better credit score! Which means better rates...The amount that you'd be able to put down wouldn't make that much of a difference in your payments, but a better rate means lower payments!
587597
Depending on where you are credit wise and how much you have for a down payment will effect this question. Assuming your below 500 FICO your looking at a hard money loan. Maximum loan to value +/-70% and your looking most likely in the 10-13% range plus the lenders fees which can be as high as 6 points!\n\nIf your above 500 then your back to a conventional sub-prime lender with much lower fees and a little better loan to value matrix... maybe 80-85% if your on the low end of their scale.\n\nIf you need to speak to a loan officer give me a call or drop me an e-mail and we can go over your specifics.\n\nKruorock@firstratelending.com\n866-562-6838 x 106
473960
no money down loan will cost more money in the long run since you will pay more interest plus you will not be able to cancel you PMI 'private mortgage insurance' until you reach 20% equity in the home.  if you buy in a 'hot' area you might want to get an appraisal after a certain number of years and if you have gained enough equity in the home you can cancel the PMI, but you'll have to pay for the appraisal from out-of-pocket.  the only good thing is that you wont need the tipical 3-5 % down payment usually required to buy a home.  check the closing cost associated with the no money down also.  always shop around.  good luck.
72496
BUYIN HOME IN ALBANY IS A GOOD OPTION.THE HOUSE OVER THERE ARE STILL LESS EXPENSIVE AS COMPARED TO REST OF THE STATE AND THEY ARE CATCHIN UP PRETTY FAST.SO IF YOU BUY A HOUSE NOW YOU CAN BUILD UP SOME EQUITY REALLY FAST AND CASH IT LATER IF YOU WANT TO.I'M SAYIN THIS FROM EXPERINCE SINCE I'M A REAL ESTATE AGENT IN NY.
1171975
Buying a home. It involves the least financial risk, and the most solid possibility for return on your investment.
2800
I just asked myself this question a couple of months ago. I ran a spread sheet with a side by side comparison of my 6 1/2% 30 year mortgage versus an equal dollar amount invested at 5% for the same term. You would expect to save quite a bit paying off the debt but you actuality save by keeping the mortgage.
900781
With the right amount of money down you can probably do about anything!....That said.....IF you have poor credit and no money to put down.....I would advise you get your credit back in order over the next year or so and try again.....Call a local lender (most of them will do a pre-qual for free!)....You might try Countrywide or First Horizon...I would stay away from "on-line" lenders as they sometimes make promises they can not full fill (just my experience)
80159
You should have some financial knowledge before setting out to get a loan.  I imagine you need the loan to purchase a one family house, instead of some apartments and other high end real estate.  I would suggest that you read a book first on buying a house, it will explain many of the curve balls the bank will throw at you when it comes time to buy the house.  Credit is not so important because the house will be your equity.  If you dont pay the bills the bank will take the house.  Try going to one or more banks, if they decline your loan, then ask them why, this way when you get to the next bank you will have some experience.  The bank is the safest way to borrow money, aside from loan sharks, and family.  You should look for a competitive interest rate, something less then 5% is good but I wouldn't pay more then 6.5% no matter your credit.  Well if you have a credit rating of less then 500, then be prepared to pay more in interest.  A large down payment will defer some of the monthy payments.  When buying a house I prefer to tie up the deal first, then worry about the money.  Also look the housing market in the USA showing slow growth this year.  I bet next year houses will be a lot more affordable.  Whatever the asking price is, take 10% off that price and offer the person that.  Look at the house, if there are cracks and damage take that out of the asking price.  I would buy a book on real estate before buying a house.  Get something like real estate for dummies,  I know it sounds degrading but its a 20 dollar book and could potentially save you thousands of dollars.  Its better to be informed before making an expensive decision.
886985
Zero down is a huge risk. \n\nIf the house goes down in value, you owe more than the house is worth, and you could be forced into forclosure.\n\nYou also have to carry mortage insurance, which adds to your monthly payment.\n\nI don't see any good that comes out of 0 down loans.
791588
Me and hubby bought a condo two years ago, and we didn't put 20% down. Instead we took the 0 down option to get in with an adjustable rate. Of course 20% down will definitely be to your advantage, as with putting any down payment on a home. After our adjustable rate skyrocketed, we did refinance and locked in a good percentage rate saving us some money. \n\nIf you can put 20% down, do it. Your home purchase is one of the biggest purchases you'll ever make, and the most beneficial to your future.
1155603
The advantage is in knowing that you have equity in your home already....Don't let the seller know what it got appriased at - ok - - -Now - if you needed help with the closing cost, that is another matter, the seller could help with closing cost, and you would make a offer to the seller to adjust the purchase price....I do not recommend this - but it has been done in the past, expecially if you already have your financing approved.  The advantages is down the road, if you wanted to do a line of credit - you have the equity of 11,000 to use - for newer carpet - etc....  I would just let it build since home markets are on the rise in different areas, and on the decline in others.  Good Luck.
753543
I'd say the most important thing is to get any outstanding debts paid off first if you can.  That will then obviously reduce your total monthy payments and then may give you a change to get a mortgage with less monthly payments or one for more money.
569833
Hey Dude,\n\nThe usual answer is: it depends. Here is a summary of the loan types you are talking about:\n\n80/20: This is a no down payment loan at 100% of the purchase price. This loan will avoid having to pay PMI. The rate on the second is typically higher than the rate on the first mortgage.\n\n100% Single loan: Can't think of a good reason to have it since you have to pay PMI that is not tax deductible. On the 80/20 loan you can deduct the interest. You would have to wait until the loan balance is 78% of the property value before you can get it removed.\n\nFHA: this can be a great loan if your credit is a little shaky. You need to put 3% down, or have the seller be willing to work with you on a down payment assistance program. If you can't qualify for good rates on the 80/20, you may still get good rates on the FHA. If you have good credit, then this is not a good loan to have as you will have to pay MIP (Mortgage Insurance Premium).\n\nJohn Visser
537669
When you owe money, creditors get good at collecting. It my take a while, but they will come after it. Having said that, if mortgaging your house means you will have lower monthly payments to allow you the breathing room you currently need for your new business - it MAY make sense.\n\nUnderstand, lower monthly payments, just means lower payments, not lower overall cost. With a mortgage, the total dollar figure can be quite large - especially when you factor in fees.\n\nIf you can get an alternative loan, at a reasonable rate, consider that - it is a good idea to keep your business affairs separate from you personal.\n\nGood Luck!
1166208
600 gets u a home with 10-20% down...anything above that ur less likely to put ANYTHING down.  Below 600 it is still possible to get a home, but u have a higher down payment with crappy rates and a high mortage.  We lucked out on ours having a score of 558 with down payment being covered by the owner, but would cost us $2000 a month for mortage. We didn't buy but it was worth a shot. Shop around...someone WILL work with u.
1183730
The best time to purchase a house is when you're financially ready to do so.  Pay off all other debt, have a solid emergency fund in place and save up a good down payment. Purchase a home where your house payment is no more than 25% of your take-home pay on a fixed-rate (preferrably 15 yr) mortgage.\n\nDepending on where you live, you may want to wait until the housing bubble pops and prices have cooled off a bit.
400165
The bigger question is do you have any money for a down payment?  If you can fund a decent sized down payment, many mortgage companies will look over "okay" credit.  If you can't make a down payment, and only have "okay" credit -- then your chances are slim of getting any type of mortgage loan.