How Much Down Payment Should I Make?
are advantages to both large and small down payments, and which you
choose depends on both personal choice and your financial circumstances.
of a large down payment: Less mortgage to pay off, smaller monthly
mortgage payments and greater opportunity to find lower interest rates.
of a small down payment: Less cash out of hand, therefore more money
for other costs; a larger monthly mortgage payment means a larger tax
deduction for mortgage interest, maintain current cash for investing
an FHA loan you will be required to pay a Mortgage Insurance Premium
(MIP) at closing. In some cases, with a conventional loan, you will be
required to pay monthly Private Mortgage Insurance (PMI). MIP and PMI
are insurance premiums which protect the lender against a loan default
in higher loan-to-value situations.
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