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.
Welcome to Long Island Living at its best! The South Shore of Suffolk County is a suburban area that runs along the shoreline of the Atlantic Ocean. Homes in this area consist of primarily residential properties. This area tends to be diverse in culture and income as it varies by hamlet, village or town. Residents along the South Shore have access to many beaches, parks and recreational activities. I pride myself on my honesty, integrity, hard work and personal service. My first career was in education, starting as a teacher then finishing as a guidance counselor and achieving my Master’s and two PD's. In 1986, I began my real estate career. In a sense, I am still an educator and offering guidance; this time I am outside of the classroom educating my clients on the selling and purchasing processes; which have become so complicated recently and guiding them safely through the confusing and ever-changing real estate market. It is very satisfying to me to help people with not only the greatest financial asset in their lives but their greatest emotional asset; where they celebrate holidays, raise their families and live their lives. I take the needs of my clients very seriously and as a result, I am proud to say, over 90% of my sales are the result of referrals and recommendations. Primarily, my areas of service are the Townships of Babylon and Islip on Long Island’s beautiful South Shore, near pristine beaches and wonderful boating, yet only 55 minutes from Manhattan; truly the best of both worlds. I'm a graduate of the Real Estate Institute and am certified as a Senior Real Estate Specialist. I also hold a license as a Notary Public. Please feel free to call or visit so I can help you fulfill your real estate dreams. I am a Full Service Licensed Real Estate Associate Broker and provide the following: Free appraisal Rental Mortgages International relocation services Sales Home warranty new homes Free school report Waterfront specialist Notary public Please feel free to call or visit so I can help you fulfill your real estate dreams.
For every sales transaction, a a portion of my commission will be donated to Pronto of Long Island, a nonprofit community outreach center who feed the hungry, clothe the needy and provide hope for our neighbors.
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